Lifecore Biomedical announced that its shares will be added to the Nasdaq Biotechnology Index effective prior to the market open on Monday, December 22, 2025. The inclusion follows the company’s annual reconstitution of the index, which requires a minimum market capitalization, average daily trading volume, and seasoning as a public company. The move is expected to increase the company’s visibility among institutional investors who track the index and could improve liquidity for the stock.
The announcement comes after Lifecore reported a 26% year‑over‑year increase in revenue for the third quarter of 2025, driven by a surge in contract development and manufacturing services (CDMO) contracts. The company secured several new agreements, including a multi‑year partnership with a large multinational pharmaceutical customer that is projected to become one of Lifecore’s top five commercial clients. Revenue from the CDMO segment rose 18% to $1.2 billion, while revenue from its hyaluronic acid (HA) production line grew 12% to $0.8 billion, reflecting continued demand in ophthalmic therapeutics.
Despite the revenue growth, Lifecore’s financial health remains a concern. The company reported negative earnings per share and a distressed Altman Z‑Score, indicating potential bankruptcy risk. Management acknowledged the challenges, noting that the company is investing heavily in capacity expansion and technology upgrades to support long‑term growth, while maintaining strict cost controls to mitigate margin pressure. CEO Paul Josephs emphasized that the new CDMO contracts and the index inclusion signal confidence in the company’s strategic direction, but also highlighted the need to manage working‑capital requirements and regulatory compliance as the business scales.
The inclusion in the Nasdaq Biotechnology Index is a milestone that can attract passive index funds and other institutional investors who track the index, potentially increasing demand for Lifecore’s shares. However, the company’s ongoing financial headwinds and the need for continued investment in its CDMO capabilities suggest that investors should weigh the growth prospects against the risk profile. The announcement provides a clearer view of Lifecore’s trajectory, offering insight into how the company’s operational expansion aligns with its financial strategy.
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