Societal CDMO reports Q2 EPS (4c), consensus (3c)

Reports Q2 revenue $21.80M, consensus $21.94M .”The second quarter was a highly productive period. During the quarter, we continued to aggressively pursue and win new business, as well as expand multiple programs with existing customers. The scope of these new projects span early stage process development, to cGMP manufacturing, to fill/finish, and beyond. We believe the demand for this broad range of services highlights a growing customer recognition of Societal as a start-to-finish partner,” said David Enloe, chief executive officer of Societal. “And we continue to expand our capabilities in an effort to address new and growing markets. To that end, the company recently announced that it has secured a license to manufacture in support of psychedelic drug development. This strategic expansion is a natural fit for the company based on our decades of experience in manufacturing and handling controlled substances. We believe this unique experience positions Societal well to address the emerging psychedelic therapy sector as well as the growing number of ongoing and planned clinical trials in this area. We are currently in discussions with drug manufacturers engaged in the psychedelic area and we look forward to our work in this new and exciting area. “However, the period was not without challenges, as our customers continue to face an unfavorable financing environment. While we do not believe that our topline year-end revenue guidance will be impacted by these market factors, we do believe that our EBITDA guidance requires revision. We had previously guided to a 2023 full year EBITDA of between $15 and $18 million. Today we are revising this guidance to between $12 and $15 million. “Despite today’s financing environment, it is important to emphasize that Societal’s operations and business fundamentals remain solid. Subsequent to the quarter end, we further stabilized our position by successfully renegotiating our debt and certain covenants to provide a stronger balance sheet today and greater financial flexibility for the future