What happened
Shares of BioLife Solutions (BLFS 3.97%) were down more than 37% for the week, as of 3:15 p.m. ET on Friday, according to data provided by S&P Global Market Intelligence. The healthcare company's stock closed last week at $19.22, then dropped to a 52-week low of $11.82 on Friday. The stock is down more than 34% so far this year.
So what
BioLife is a cell- and gene-therapy bioproduction tools and services company. It makes cell-storage media, thawing solutions, cold chain accessories, and cryopreservation freeze media products. Its business is tied to the growing biotech industry.
The company released its second-quarter earnings on Tuesday after the markets closed. BioLife reported it had $39.5 million in revenue, down 3% over the same period last year, and it was the second consecutive quarter that revenue fell, year over year. Its net loss was $10.3 million, compared to a loss of $76.6 million in the same period last year
The biggest news in the report was the company said it plans to divest itself of its Stirling Ultracold and CBS freezer assets by the end of this year. The idea is the move will allow the company to focus on more profitable products. BioLife said, if the freezer assets are set aside, the company's gross margin would have been 48% in the past quarter instead of 32%.
Now what
The downward move may be a bit drastic. BioLife is counting on long-term growth for its products thanks to the likely growth of new cell and gene therapies in the biotech industry. In the short term, however, the downturn for many biotech stocks this year is causing a slowdown in BioLife's sales. The sluggish earnings report caused four analysts to downgrade their price targets for the stock this week.
