Lifecore Biomedical announced a new CDMO master services agreement with a large multinational pharmaceutical customer that will transfer the commercial supply of an injectable product from overseas facilities to the company’s Chaska, Minnesota site. The deal includes development services and technology transfer, positioning Lifecore as the preferred commercial supplier once regulatory approvals are obtained.
The agreement is Lifecore’s second major CDMO contract in three months, underscoring a rapid acceleration in its commercial pipeline. Management estimates that the new partner could become one of the company’s top five customers, a prospect that would materially increase recurring revenue and strengthen the firm’s presence in the growing sterile injectable market.
Financially, Lifecore reported Q3 2025 revenue of $31.1 million, a 26% year‑over‑year increase, driven by a 26.5% rise in its CDMO segment and a 17.7% gain in hyaluronic acid manufacturing. Adjusted EBITDA for the quarter reached $20.2 million, reflecting a 15.8% margin that improved from the prior year, thanks to operational leverage and a favorable sales mix.
CEO Paul Josephs highlighted the momentum generated by the business‑development team, noting that “we cannot be more excited to experience the momentum that has been generated by our talented business‑development team.” He added that Lifecore is focused on maximizing existing business, advancing its late‑stage pipeline, and winning new CDMO contracts, signaling confidence in sustained growth.
Lifecore’s Chaska facility has a strong regulatory track record, having resolved a significant FDA warning letter in early 2024. The company’s dual focus on sterile injectable development and pharmaceutical‑grade hyaluronic acid production provides diversification and positions it to capture both high‑margin API and excipient markets.
Overall, the new agreement expands Lifecore’s commercial footprint, reinforces its competitive advantage in sterile injectables, and aligns with its strategy of leveraging site transfers and high‑margin segments to drive long‑term profitability.
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