Organogenesis Holdings Inc. Reports Preliminary Financial Results for Third Quarter 2020
15 October 2020 - 7:30AM
Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative
medicine company focused on the development, manufacture, and
commercialization of product solutions for the Advanced Wound Care
and Surgical & Sports Medicine markets, today reported
preliminary financial results for the three months ended September
30, 2020.
Third Quarter
2020 Preliminary
Financial Results
Summary:
- Net revenue of between $99.0 million and $100.0 million for the
three months ended September 30, 2020, up 54% to 56% compared to
net revenue of $64.3 million for the three months ended September
30, 2019. Net revenue is based upon:
- Net revenue from Advanced Wound Care products of between $88.5
million and $89.3 million, up 63% to 64% year-over-year.
- Net revenue from Surgical & Sports Medicine products of
between $10.5 million and $10.7 million, up 5% to 7%
year-over-year.
- Net revenue from the sale of PuraPly products of between $39.0
million and $40.0 million for the three months ended September 30,
2020, up 23% to 26% year-over-year.
- The Company expects to report positive GAAP net income and
positive Adjusted EBITDA for the three months ended September 30,
2020.
Updated Fiscal Year 2020
Financial Guidance:
For the twelve months ending December 31, 2020, the Company now
expects:
- Net revenue of between $311 million and $314 million,
representing growth of approximately 19% to 20% year-over-year, as
compared to net revenue of $261 million for the twelve months ended
December 31, 2019.
- The 2020 net revenue guidance range assumes:
- Net revenue from Advanced Wound Care products of between $273
million and $275 million, representing growth of approximately 24%
to 25% year-over-year as compared to net revenue of $221 million
for the twelve months ended December 31, 2019.
- Net revenue from Surgical & Sports Medicine products of
between $38 million and $39 million, representing a decrease of
approximately 3% to 6% year-over-year as compared to net revenue of
$40 million for the twelve months ended December 31, 2019.
- Net revenue from the sale of PuraPly products of between $119
million and $121 million, representing a decrease of approximately
5% to 6% year-over-year, as compared to net revenue of $127 million
for the twelve months ended December 31, 2019.
- The Company expects to report positive GAAP net income and
positive Adjusted EBITDA for the three months ended December 31,
2020.
- The Company expects to report positive GAAP net income and
positive Adjusted EBITDA for the full fiscal year 2020 period.
Acquisition of CPN
Biosciences:
On September 17, 2020, Organogenesis Holdings
Inc. acquired CPN Biosciences.
“This strategic acquisition significantly
enhances our ability to drive growth in the office channel,” said
Gary S. Gillheeney, Sr., President and Chief Executive Officer of
Organogenesis. “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 acquisition of CPN Biosciences did not
materially impact revenue for the three months ended September 30,
2020.
Third Quarter 2020 Earnings Conference
Call:
Financial results for the third fiscal quarter
of 2020 will be reported after the market closes on Monday,
November 9, 2020. Management will host a conference call at 5:00
p.m. Eastern Time on November 9 to discuss the results of the
quarter and provide a corporate update with a question and answer
session. Those who would like to participate may dial 866-795-3142
(409-937-8908 for international callers) and provide access code
9668716. A live webcast of the call will also be provided on the
investor relations section of the Company's website at
investors.organogenesis.com.
For those unable to participate, a replay of the
call will be available for two weeks at 855-859-2056 (404-537-3406
for international callers); access code 9668716. The webcast will
be archived at investors.organogenesis.com.
Forward-Looking StatementsThis release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to expectations or forecasts of future events.
Forward-looking statements may be identified by the use of words
such as “forecast,” “intend,” “seek,” “target,” “anticipate,”
“believe,” “expect,” “estimate,” “plan,” “outlook,” and “project”
and other similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
Such forward-looking statements include statements relating to the
Company’s expected revenue for fiscal 2020 and the breakdown of
such revenue in both its Advanced Wound Care and Surgical &
Sports Medicine categories as well as the estimated revenue
contribution of its PuraPly products. Forward-looking statements
with respect to the operations of the Company, strategies,
prospects and other aspects of the business of the Company are
based on current expectations that are subject to known and unknown
risks and uncertainties, which could cause actual results or
outcomes to differ materially from expectations expressed or
implied by such forward-looking statements. These factors include,
but are not limited to: (1) the Company has incurred significant
losses since inception and anticipates that it will incur
substantial losses for the foreseeable future; (2) the Company
faces significant and continuing competition, which could adversely
affect its business, results of operations and financial condition;
(3) rapid technological change could cause the Company’s products
to become obsolete and if the Company does not enhance its product
offerings through its research and development efforts, it may be
unable to effectively compete; (4) to be commercially successful,
the Company must convince physicians that its products are safe and
effective alternatives to existing treatments and that its products
should be used in their procedures; (5) the Company’s ability to
raise funds to expand its business; (6) the impact of any changes
to the reimbursement levels for the Company’s products and the
impact to the Company of the loss of preferred “pass through”
status for PuraPly AM and PuraPly on October 1, 2020; (7) the
Company’s ability to maintain compliance with applicable Nasdaq
listing standards; (8) changes in applicable laws or regulations;
(9) the possibility that the Company may be adversely affected by
other economic, business, and/or competitive factors; (10) the
Company’s ability to complete the relaunch of Affinity and to
maintain production in sufficient quantities to meet demand; (11)
the COVID-19 pandemic and its impact, if any, on the Company’s
fiscal condition and results of operations; and (12) other risks
and uncertainties described in the Company’s filings with the
Securities and Exchange Commission, including Item 1A (Risk
Factors) of the Company’s Form 10-K for the year ended December 31,
2019 and its subsequently filed periodic reports. You are cautioned
not to place undue reliance upon any forward-looking statements,
which speak only as of the date made. Although it may voluntarily
do so from time to time, the Company undertakes no commitment to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable securities laws.
About Organogenesis Holdings Inc. Organogenesis
Holdings Inc. is a leading regenerative medicine company offering a
portfolio of bioactive and acellular biomaterials products in
advanced wound care and surgical biologics, including orthopedics
and spine. Organogenesis’s comprehensive portfolio is designed to
treat a variety of patients with repair and regenerative needs. For
more information, visit www.organogenesis.com.
Investor Inquiries:
Westwicke Partners
Mike Piccinino, CFA
OrganoIR@westwicke.com
443-213-0500
Press and Media Inquiries:
Organogenesis
Marcus Girolamo
MGirolamo@organo.com
817-688-4767
Organogenesis (NASDAQ:ORGO)
Historical Stock Chart
From May 2024 to Jun 2024
Organogenesis (NASDAQ:ORGO)
Historical Stock Chart
From Jun 2023 to Jun 2024