ImmuCell expands capacity and boosts US sales amid softer international performance

ImmuCell shifts focus towards strengthening domestic sales and capacity expansion, planning to more than triple production by 2027 despite recent margin pressures and a challenging international market.

ImmuCell is leaning harder into its First Defense calf-scours line, using a stronger domestic market and expanded sales coverage to offset a softer international quarter and pressure on margins. In the three months to 30 June, product sales rose 11.5% to $7.2 million, while US revenue increased 27.7% to $6.2 million, helped by a larger commercial team and improved availability after earlier supply bottlenecks.

Gross margin fell to 33.9% from 43.7% a year earlier, as the company absorbed former Re-Tain-related costs and ran its plant below first-quarter output. Management said the lower production rate was deliberate, reflecting seasonal demand, process changes and work aimed at improving future yields. ImmuCell also reported roughly $150,000 of scrap tied to a purchased material issue, which internal controls identified early.

Net income per diluted share increased to $0.20, boosted by a $2 million legal settlement with a former contract manufacturer. Cash and equivalents stood at $8.9 million at quarter end, with working capital rising to $16.6 million.

More consequential for investors, the company plans about $8 million of capacity spending across freeze-drying and liquids processing, using former Re-Tain facilities. Management says the project should more than triple capacity by the end of 2027 and shorten processing times to under a month.