Why Mesa Laboratories (MLAB) Stock Is Getting Hammered Today

Mesa Laboratories Inc MLAB shares are trading lower by 12.89% to $160.40 Tuesday morning after the company announced its Clinical Genomics Division customer, Sema4, will exit the reproductive health screening business. Sema4 informed the company it will reduce the quantity of orders in third-quarter.

What Else?

Mesa says the company has no other material revenues for expanded carrier screening with other customers. On November 16, 2022, Sema4 informed Mesa that it intends to significantly reduce the quantity of consumables orders it will place beginning in the third quarter of Mesa’s fiscal year ending March 31, 2023.

Without the revenues from Sema4, Mesa says the Clinical Genomics division would have reported ex-COVID-19 revenues of approximately $56.3 million for that 12-month period. Sema4 primarily purchased consumable products, which generate a significantly higher gross profit percentage than the overall Clinical Genomics business.

According to data from Benzinga Pro, MLAB has a 52-week high of $333.42 and a 52-week low of $114.20.