If you hold shares of Organovo stock (NYSE MKT: ONVO), then you know that the past 18 months have been a rollercoaster ride. Shares of the stock have bounced between $12.50 in late 2013, to as low as $3.66 just last month. Certainly investors can’t be happy with the recent share price movement. With that said, the company themselves continues to make tremendous progress within the 3D printed human tissue space.
With investors up in arms as of late, and a share price which company executives likely see us underpriced, Orgonovo today did something that’s somewhat rare, they pre-announced preliminary 2015 fourth quarter and year end financial information.
“We are pleased to report preliminary fourth quarter and annual results which primarily reflect the initial uptake of our pre-launch product and services,” said Chief Financial Officer Barry Michaels. “Fiscal 2015 was an exceptional year of accomplishment for Organovo, as we locked down our liver toxicity product and initiated commercial launch of our product and service in November. We expect to gain greater adoption from the global pharmaceutical community and look forward to partnering with them in the discovery and development of their products. Moreover, we are excited about our development progress with a kidney tissue product as well as the opportunity to expand our footprint to include applications within the cosmetics industry. We enter fiscal 2016 with confidence and momentum and look forward to continued expansion of our platform technology across multiple industries utilizing various fully cellular tissues.”
Below you will find the numbers that the company released today, all which are unaudited:
- Total estimated revenue for the quarter which ended March 31, 2015 are approximately $268,000, while earnings for the entire fiscal year are around $571,000.
- Net cash utilization for the quarter is estimated at around $6.3 million and annual cash utilization for the fiscal year is estimated at around $21.1 million
- Organovo closed the fiscal year out with $50.1 million in cash and cash equivalents on their balance sheet.
One of the main causes of the recent price decline, likely stems from fear by investors that the company will eventually run out of cash and require a secondary offering. While this is certainly a possibility, the fact that revenues are now picking up, and there are still over 2 years of cash and cash equivalents remaining on the balance sheet at the current burn rate, perhaps today’s preliminary report is the fuel the stock has needed to bounce back.
The company seems to have their hands in many verticals within the bioprinting space, and it will likely be another year before any major revenue is realized, but the long term dynamics of Organovo seem strong, and if managed correctly they very well could become a giant within the industry.
Are you a shareholder of Organovo? Let’s hear your thoughts on today’s report. Discuss in the Organovo forum thread on 3DPB.com. For full disclosure, I am a shareholder in this company and have been for two years.