Biomerica Secures $1.75M CDMO Contract, Offering New Revenue Stream
BMRA sits 42% above its 52-week low of $1.866.
Summary
Biomerica has secured a Master Services Agreement (MSA) for CDMO services with an initial target fee of over $1.75 million. This three-year agreement for IVD diagnostic development is a significant new revenue stream, especially considering the company's recent financial distress, declining revenue, and going concern warning reported in its April 13th 10-Q filing. The $1.75 million contract is nearly double their last reported quarterly sales of $987,000, providing much-needed capital-efficient revenue by leveraging existing infrastructure. Revenue will be recognized as milestones are completed.
At the time of this announcement, BMRA was trading at $2.65 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $7.6M. The 52-week trading range was $1.87 to $4.60. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.