Celularity Inc. Reports $57.9M Net Loss for 2024, Revenue Increases 138.1%

Celularity Inc. (formerly GX Acquisition Corp.) reported a net loss of $57.9 million for the year ended December 31, 2024, a significant decrease from the $196.3 million net loss reported in 2023. This improvement stemmed from a 138.1% increase in total revenues to $54.2 million, driven primarily by a 168.7% surge in product sales, reaching $35.3 million, largely due to increased sales of Biovance 3L and Rebound. The company also saw a 228.7% increase in license, royalty, and other revenue, reaching $13.7 million, attributed to increased Rebound distributor sales initiated in the third quarter of 2024. However, the company's cash and cash equivalents stood at a mere $0.7 million as of December 31, 2024.

Operating expenses decreased by 57.0% to $92.6 million in 2024 compared to $215.1 million in 2023. This reduction was primarily due to a 42.9% decrease in research and development expenses, resulting from the discontinuation of certain clinical trials and reduced personnel costs following a reduction in force. Conversely, selling, general, and administrative expenses increased by 16.0% to $58.6 million, reflecting higher selling expenses related to increased biomaterial sales. The company also reported no goodwill or IPR&D impairment charges in 2024, a stark contrast to the $210.1 million in impairment charges recognized in 2023.

Significant developments during the year included the acquisition of Sequence LifeScience's Rebound product line for up to $5.5 million, and several debt and equity financing transactions, including the issuance of unsecured senior convertible notes and warrants. The company also experienced a decrease in its acquisition-related contingent consideration liability, primarily due to adjustments to market-based assumptions. As of December 31, 2024, Celularity employed 123 full-time employees and 16 leased workers. The company's financial statements included an explanatory paragraph expressing substantial doubt about its ability to continue as a going concern without additional capital.

The company's biomaterials business, primarily comprised of Biovance 3L and Rebound, experienced strong growth, while its cell therapy pipeline underwent a strategic refocusing. Celularity anticipates submitting a 510(k) application for its Celularity Tendon Wrap in the second half of 2025, with further 510(k) filings planned for its FUSE Bone Void Filler and Celularity Placental Matrix in the second half of 2026 and 2027, respectively. Regarding cell therapies, the company plans to request an end-of-Phase 2 meeting with the FDA in the first half of 2025 for its MLASCs cell therapy candidate for diabetic foot ulcers. The company also noted ongoing efforts to secure additional financing to support its operations and development plans.

Celularity's 10-K filing highlighted numerous risk factors, including substantial doubt about its ability to continue as a going concern, dependence on additional financing, intense competition, and the lengthy and uncertain regulatory approval process for its therapeutic candidates. The company also disclosed material weaknesses in its internal control over financial reporting and ongoing legal proceedings. The company stated it does not intend to pay cash dividends in the foreseeable future. The filing also detailed the company's intellectual property portfolio, comprising over 290 patents and patent applications. Finally, the company noted that its common stock was subject to delisting from Nasdaq due to late filing of the 10-K.