22nd Century Group Inc (NYSE:XXII) shares tumbled more than 20% after the biotechnology company, which is focused on utilizing advanced plant technologies to improve health and wellness with reduced nicotine tobacco, hemp, cannabis and hops, lowered its full-year revenue guidance.
For 2023, the New York-based company now expects sales between $80 to $90 million, below its prior guidance range of $105 to $110 million.
It said its updated forecast accounted for changes in the launch timeline and scope of its reduced nicotine cigarettes VLN at certain key chains in 2023, the transition of its CBD-maker division GVB Biopharma’s volumes back to internal production, and its operating cost reduction plan which is expected to save the company at least $15 million per year.
Meanwhile, the company reported second quarter revenue of $23.4 million, up 62% from the year-ago quarter but below the Street forecast of $24.1 million, according to Zacks.
It posted a loss per share of $1.40, a greater loss than the expected $1.05 loss per share.
22nd Century shares were down 20.4% at US$2.19 on Monday morning.
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