CLGN Stock Crashed 14% Today – Disappointing Earnings, Workforce Reduction Plan Draws Investor Attention

The firm reported revenue of $77,000 for the three months ended September, above the $4,000 reported in the corresponding quarter of 2024, but below an analyst estimate of $5.03 million, according to data from Fiscal AI.

• The workforce reduction plan is expected to impact 25% of the company’s workforce.
• The company’s adjusted net loss per share in Q3 came in at $0.25, but analysts, on average, expected earnings of $0.15 per share.
• The company reported revenue of $77,000 for the three months ended September.

Shares of CollPlant Biotechnologies (CLGN) slumped 14% on Wednesday morning after the company reported third-quarter earnings below Wall Street expectations.

The firm reported revenue of $77,000 for the three months ended September, above the $4,000 reported in the corresponding quarter of 2024, but below an analyst estimate of $5.03 million, according to data from Fiscal AI.

Adjusted net loss per share came in at $0.25, lower than the $0.33 loss reported in the corresponding quarter of 2024. Still, analysts, on average, were expecting the company to report earnings of $0.15 per share.

Cost-Cutting Efforts And Layoffs

The company said it has initiated a cost-cutting and workforce-reduction plan, which is expected to result in about a 25% cut in its workforce.

"In 2026, CollPlant will prioritize its collaboration with AbbVie and continue advancing its own dermal filler product candidate… In parallel, we plan to actively seek a strategic partner to collaborate with us on the continued development of our novel regenerative breast implant product candidate," Collplant CEO Yehiel Tal said.

CollPlant is a regenerative and aesthetic medicine company focused on 3D bioprinting of tissues and organs, and medical aesthetics. The company's products are based on its recombinant human collagen. The company entered into a development and global commercialization agreement for dermal and soft tissue fillers with Allergan, an AbbVie company, in 2021.

"We remain highly encouraged by the additional results emerging from the preclinical studies of our commercial-size regenerative breast implants, as well as from the ongoing evaluations of our photocurable dermal filler program,” Tal added. The photocurable derma filler program is now in the final stages of preclinical testing, and the company is now preparing for the initial clinical studies, IT said.

How Did Stocktwits Users React?

On Stocktwits, the retail sentiment around CLGN stock stayed within the ‘bullish’ territory over the past 24 hours while message volume rose from ‘low’ to ‘normal’ levels.

CLGN stock is down 44% this year and by about 53% over the past 12 months. 

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