$21.8M Revenue For NASDAQ-Listed Psychedelics Ancillary Company Societal CDMO's Q2 2023

Societal CDMO Inc. SCTL, a contract development and manufacturing organization (CDMO) dedicated to solving complex formulation and manufacturing challenges for small molecule therapeutics, reported financial results for the three and six months ended June 30, 2023.

• Revenue of $21.8 million and $43.3 million, compared to $23.2 million and $44.3 million in the comparative periods of 2022. 

• Cost of sales of $17.3 million and $36.6 million, compared to $17.5 million and $33.6 million for the comparable periods of 2022. 

• Quarterly and half-year selling and G&A expenses of $5.3 million and $9.9 million, vs. $5.2 million and $10.9 million in the comparable periods of 2022.

• Interest expenses of $2.3 million and $4.4 million, compared to $3.4 million and $6.8 million for the comparable periods of 2022. 

• Quarterly and half-year net losses of $3.2 million (or $0.04 per diluted share) and $7.9 million (or $0.09 per diluted share), compared to net losses of $3.1 million (or $0.06 per diluted share) and $7.4 million (or $0.13 per diluted share) for the comparable periods of 2022. Adjusted EBITDA for the 2023 periods was $2.8 million (vs. $4.0 million in Q2 2022) and $3.4 million (vs. $6.8 million in 2022’s first six months.) 

Management Comments & Pipeline

Societal is a bi-coastal CDMO with capabilities spanning pre-Investigational New Drug (IND) development to commercial manufacturing and packaging for a range of therapeutic dosage forms.

CEO David Enloe says the second quarter was a “highly productive” period, with Societal continuing to “aggressively pursue and win” new business -including psychedelic drug development- and expand programs with existing customers. 

Nonetheless, he added, the period was not without challenges, as customers continue to face an “unfavorable” financing environment, which leads management to believe that Societal’s 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,” Enloe said. Despite this, “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.”

As much as we cover the psychedelics sector, we own expertise in the cannabis world. If you still haven’t heard about our biannual crowd-puller, the Cannabis Capital Conference, come join us and see for yourself!

Photo: Benzinga edit with photo by aiyoshi597, Gisele Yashar, Bacsica and Gorodenkoff on Shutterstock.