Yesterday afternoon after U.S. markets closed for trading, regenerative medicine company Organogenesis Holdings Inc. (ORGO:NASDAQ), which develops, manufactures and markets products for wound care and surgical and sports medicine markets, announced preliminary financial results for the three months ended September 30, 2020.
Organogenesis Holdings advised that it expects to report net revenue of $99-$100.0 million in Q3/20. The firm stated that this level represents a 54-56% increase over the $64.3 million in posted in Q3/19.
The company provided a further breakdown by business segment and indicated that for Q3/20 it expects a 63-64% year-over-year increase in net revenue from Advanced Wound Care products in the range of $88.5-89.3 million. The firm added that it expects that net revenue from Surgical & Sports Medicine products will increase by 5-7% to $10.5-10.7 million. The company indicated additionally that it expects PuraPly products net revenue of $39-40.0 million, which is a 23-26% increase over Q3/19.
The company advised that it expects that it will be able to report positive GAAP net income and positive adjusted EBITDA for Q3/20, but did not provide any specific details in the preliminary quarterly sales data presented.
Organogenesis reported that for FY/20 it now expects net revenue of $311-$314 million, an increase of approximately 19-20%, compared to net revenue of $261 million that it achieved in FY/19. The bulk of this net revenue is attributable to net revenue from Advanced Wound Care products, which is expect to increase 24-25% to $273-275 million, compared to net revenue of $221 million for FY/19.
The firm did not provide any full-year earnings estimates, but stated that it "expects to report positive GAAP net income and positive adjusted EBITDA for both Q4/20 and FY/20."
Organogenesis Holdings noted that it acquired CPN Biosciences on September 17, 2020. The firm did not elaborate on the specifics the acquisition in the news release except for noting that the purchase did not materially impact revenue in Q3/20.
The company's President and CEO Gary S. Gillheeney, Sr. commented, "This strategic acquisition significantly enhances our ability to drive growth in the office channel...CPN's physician office management solution and complementary first-in-line advanced wound care products further broaden Organogenesis' physician offering and accelerates our office strategy."
The firm indicated that it intends to announce the full Q3/20 financial results after the market closes on Monday, November 9, 2020.
Organogenesis is a regenerative medicine company based in Canton, Mass. The firm makes a variety of bioactive and acellular biomaterials products for use in advanced wound care treatment and surgical biologics used for orthopedics, sports medicine and spinal care. The company's advanced wound care products are used in treating numerous types of chronic and acute wounds throughout all phases of the healing process. The firm's surgical and sports medicine products are used in the treatment of musculoskeletal injuries, and degenerative conditions including tendonitis and osteoarthritis.
Organogenesis Holdings has a market capitalization of around $398.5 million with approximately 105.4 million shares outstanding. ORGO shares opened greater than 16% higher today at $4.3986 (+$0.6186, +16.37%) over yesterday's $3.78 closing price. The stock has traded today between $4.23 and $4.84 per share and is currently trading at $4.54 (+$0.77, +20.24%).[NLINSERT]
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