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      Did Anything Hurt Zymergen (ZY) Stock In Extended Trading? - Stocks Telegraph

      By Fahim Awan

      Published on

      August 4, 2021

      7:43 AM UTC

      Did Anything Hurt Zymergen (ZY) Stock In Extended Trading? - Stocks Telegraph

      In the after-hours, Zymergen Inc. (ZY) shares were trading at $11.10, falling -68.13%. The ZY stock closed Tuesday’s session at $34.83, up 2.35%. The ZY stock volume remained at 0.55 million shares, higher than the daily average of 357K shares over the past 50 days. ZY stock has gained 12.32% over the past week but lost 23.01% over the past three months. Furthermore, ZY has a current market capitalization of $3.49 billion with 100.33 million outstanding shares. The ZY stock plunged after facing problems with its commercial product pipeline.

      What issues has ZY Stock been facing?

      Biomanufacturing company Zymergen enables people to transform the world through the use of biology. With the help of nature, ZY designs, develops, and manufactures bio-based breakthrough products that deliver value to both consumers and businesses. Designing new materials using biologists, chemists, software, and automation are some of the qualifications ZY uses to create its products.

      In yesterday’s report, Zymergen shared its commercial product pipeline and preliminary financials.

      • It has recently been discovered that ZY’s product pipeline has issues that will affect revenue projections and the timeline for delivery.
      • Accordingly, ZY does not expect product revenue for 2021, while product revenue for 2022 will also be insignificant.
      • ZY encountered technical difficulties implementing Hyaline into several key target customer processes during the quarter, typical of the process of developing new products and processes.
      • There have been some significant improvements in the way ZY is responding to these challenges and they believe Hyaline is not inherently flawed.
      • The commercial ramp of the ZY has been delayed due to this issue.
      • Efforts are being made to strengthen ZY’s commercial team to ensure that its sales pipeline qualification and forecasting systems are reliable and robust.
      • In connection with the business update, ZY also announced the appointment of Acting CEO Jay Flatley, effective immediately.
      • Josh Hoffman’s resignation of his role as CEO and Board member led to Flatley’s appointment.
      • Hoffman will step down immediately.
      • An executive search will be initiated by ZY’s Board of Directors to identify a permanent CEO.

      ZY’s preliminary results:

      • Currently, ZY expects total revenue to range from $5 million to $6 million for the quarter ended June 30, 2021, arising from R&D service agreements and collaborations.
      • As a result, ZY estimates that its GAAP total costs, including depreciation and amortization, will range from $100 million to $105 million.
      • Zymergen (ZY) also estimates an increase in non-cash rental expense of approximately $20 million, and non-GAAP operating costs and expenses of approximately $80 to $85.
      • On June 30, 2021, ZY had approximately $588 million in cash and cash equivalents, including approximately $11 million in restricted cash.

      , Furthermore, Zymergen (ZY) is planning to reduce expenses to align with the change in the Company’s revenue expectations as part of today’s business update.

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