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Enzo Biochem Stock Up 50% as CEO Steps Down; 2Q Revenue Rises

Dow Jones Newswires ·  Mar 16, 2021 04:36

DJ Enzo Biochem Stock Up 50% as CEO Steps Down; 2Q Revenue Rises

By Micah Maidenberg

Enzo Biochem Inc. said it hired an investment bank to evaluate various strategic options as its chief executive plans to step down from the job.

The company focused on molecular diagnostics said founder and CEO Dr. Elazar Rabbani will step down as its top leader but remain a director on the board and take a scientific role when Enzo hires a successor.

Enzo also said it retained health care investment bank Cain Brothers to "evaluate and execute strategic and commercial opportunities."

Shares rose 50% to $4.44 in after-hours trading.

For its latest quarter, Enzo reported net income of $2.3 million, or 5 cents a share, compared with a loss of $7.7 million, or 16 cents a share, for the year-earlier period. Revenue grew to $31.5 million from $19.4 million.

Increased business activity tied to the Covid-19 pandemic helped the company boost revenue, Enzo said. The company has said it provides Covid-19 molecular tests on its Genflex device.

Enzo also said that Gary Huff, the former CEO of LabCorp Diagnostics, will serve as a strategic consultant to its board of directors.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

March 15, 2021 16:36 ET (20:36 GMT)

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