When it comes to 3D printing human tissue, Organovo (ONVO) is leading the charge. While the company’s stock has floundered as of late, dropping to as low as $2.78 last week, they continue to fire on all cylinders, signing research deals with companies such as L’Oréal and Merck, and finally beginning to generate revenue from their exVive3D™ 3D printed human liver tissue.
As shares traded at their lowest level since early 2013, the company needed some good news to convince shareholders that they are on the right path. Yesterday when they released their first quarter fiscal 2016 financial results, they had an opportunity to deliver that news, and it appears that they have not let the market down.
The company has reported total contract bookings for their exVive3D™ 3D printed human liver tissue as of June 9, 2015 of approximately $2 million. This included total revenue of $306,000 for the three months ended June 30, 2015 (their fiscal first quarter, 2016), representing a staggering 209% increase when compared to revenue for the first quarter of 2015. Additionally, product and service revenue for the quarter came in at $209,000, as opposed to the company’s report last year showing no revenue at all within this segment. Most of the new revenue can be attributed to research service agreements related to their exVive3D™ 3D printed human liver tissue.
“We are very pleased to have had a successful launch and have a diverse set of customers for our exVive3D Liver, including top 25 global pharma companies, additional public pharmaceutical companies from small to large cap, and private venture backed companies,” explained Keith Murphy, Organovo’s President and Chief Executive Officer. “We have continued to expand the data demonstrating the predictive power and comparability to native human biology provided by the exVive3D Liver, and we continue to gain penetration and awareness of the technology through our marketing, sales, and R&D efforts. As importantly, we have put ourselves in position to further expand capacity, develop new tissue and disease model opportunities, and drive liver and kidney tissue revenue growth faster.”
While revenue is jumping up, so too are the company’s expenses. Operating expenses came it at $8.8 million for the quarter, up $2.2 million or 35% from a year prior. This increase can be attributed to an overall ramping up of hiring for their product development team, additional research and development, and activities related to the commercialization of their exVive3D™ product and service.
Organovo also reported that they currently have a working capital of $81.8 million as of June 30, 2015, which should provide enough cash flow for several years of operations, regardless of additional revenue streams.
Overall the report was a solid one, showing that the company’s revenue continues to grow as they have a healthy balance sheet, and plans next years to launch an exVive3D™ 3D printed human kidney tissue to market. The stock was up close to 17% yesterday, as the numbers trickled out near the market’s close, but has given back much of those gains this morning in pre-market trading.
Let us know if you are an investor in this company and if you are happy with the latest quarterly report. Discuss in the Organovo forum thread on 3DPB.com.