BioHarvest Sciences Inc. (NASDAQ:BHST) shares jumped 11.43% on Tuesday after the company announced its first CDMO manufacturing agreement for a rare botanical fragrance ingredient, alongside second-quarter results showing modest revenue growth and a narrower adjusted loss per share.
Second-quarter revenue reached $8.8 million, up 3.8% from $8.5 million a year earlier. Adjusted EPS improved to a loss of $0.17 from a loss of $0.24 in the second quarter of 2025.
Fragrance agreement targets 20-ton commercial programme
The main catalyst for the share-price move was BioHarvest’s new manufacturing agreement with a UAE-based fragrance customer.
The deal is expected to support a planned commercial production programme totalling 20 tons over two years. BioHarvest said limited production of the fragrance ingredient could begin as early as the first half of 2027.
“We are extremely pleased to have announced a manufacturing agreement this morning with our UAE-based fragrance customer that secures commitment to produce a fragrance ingredient that is widely regarded as one of the most valuable fragrance raw materials in the world,” said Dr. Zaki Rakib, Chief Executive Officer.
The agreement marks BioHarvest’s first CDMO manufacturing contract and provides a potential pathway toward commercial-scale production within that business.
CDMO EBITDA outlook improves
BioHarvest also revised its 2026 guidance, with the outlook differing significantly between its CDMO and VINIA direct-to-consumer operations.
For CDMO, full-year revenue guidance was narrowed to $4 million-$5 million from $4 million-$6 million, giving the updated range a midpoint of $4.5 million.
More notably, expected adjusted EBITDA losses were reduced to $1.5 million-$2 million from the previous forecast of $4 million-$5 million.
The improvement in the CDMO profitability outlook provides additional context for the fragrance agreement as BioHarvest works to expand its manufacturing business.
VINIA outlook lowered as DTC business moves toward expected loss
The revised outlook was less favourable for BioHarvest’s VINIA direct-to-consumer business.
Full-year VINIA revenue guidance was reduced to $33 million-$35 million from the previous $38 million-$42 million range.
The division is now expected to generate an adjusted EBITDA loss of $1.5 million-$2.5 million, compared with the earlier forecast for positive adjusted EBITDA of $0.5 million-$2 million.
BioHarvest reported approximately 95,000 active VINIA customers at the end of July.
Consolidated EBITDA loss forecast widens
At the group level, BioHarvest now expects a consolidated adjusted EBITDA loss of $3 million-$5 million in 2026, compared with its previous $3 million-$4 million forecast. The midpoint of the new range is $4 million.
Second-quarter gross margin was 58%, slightly below 59% in the corresponding period last year.
For investors, the 11% share-price increase puts the spotlight firmly on the new fragrance manufacturing agreement and the substantially improved CDMO EBITDA outlook. However, weaker VINIA guidance and a wider range for consolidated adjusted EBITDA losses provide important counterweights to the commercial progress announced in the CDMO business.
BioHarvest Sciences stock price
