Orgenesis achieves revenue of USD 8.0 million for the third quarter of 2022
Germantown, Maryland, US, November 11, 2022 - Orgenesis Inc. (NASDAQ: ORGS) (“Orgenesis” or the “Company”), a global biotech company working to unlock the full potential of cell and gene therapies (CGT), today provided a business update for third quarter ending September 30, 2022.
Vered Caplan, CEO of Orgenesis, said, “We have made significant progress in advancing the rollout of our POCare platform. As recently announced, we secured up to USD 50 million in funding from Metalmark Capital Partners, a premier private equity firm, into a recently formed point-of-care services subsidiary, Morgenesis LLC. This transaction was highly strategic for the Company and we believe that it provides further validation of our business model. Notably, Metalmark valued this one subsidiary alone at a pre-money valuation of USD 125 million for its investment, which represents a significant premium to the market cap of our entire company. Moreover, this investment structure allowed us to fund the POCare services business, while minimizing dilution given the current state of the public markets.”
“We are highly encouraged by industry feedback related to our POCare platform. There is a shortage of production capacity in the cell and gene therapy space, and we believe that our process is far more scalable and cost-effective than the traditional centralized CDMO (Contract Development and Manufacturing Organization) model. Moreover, our POCare platform addresses many of the key challenges facing the industry, including capacity constraints and excessive costs. We believe our model is uniquely positioned to address these challenges through a highly innovative decentralized model, which lowers costs, streamlines logistics, and expands capacity.”
“While we are pleased to have achieved revenue of approximately USD 8.0 million for the third quarter, we were limited by capital constraints. With Metalmark’s support, we look forward to capitalizing on the broad demand and accelerating the deployment of our Orgenesis Mobile Processing Units and Labs (OMPULs) to potentially bring lifesaving treatments to patients across North America, Europe, Asia, and the Middle East.”
“It is important to note that separate from Morgenesis, we have a deep therapeutics pipeline in various stages of development. These programs span immuno-oncology, anti-viral, metabolic/auto-immune diseases, and tissue regeneration, and we have established co-development partnerships to help pay for their development. As these programs progress, we expect to increasingly benefit from revenue sharing and royalty agreements with our partners as we seek to advance the respective therapies through commercialization. Through these partnerships and prudent cash management, we have dramatically reduced our selling, general and administrative expenses by 49 percent and our net loss by 86 percent. As a result, we achieved nearly breakeven income from operations for the third quarter of 2022. Overall, we have built a scalable, high-margin, recurring revenue business model."
The complete financial results for the third quarter of 2022 are available on the Company’s website in the Company’s Form 10-Q, which has been filed with the Securities and Exchange Commission.
Conference Call
The Company will host a conference call on Friday, November 11, 2022, at 8:00 AM ET to discuss the company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll-free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code 849908. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2585/47112 or on the Company’s Investor Events section of the website here.
A webcast replay will be available on the Company’s Investor Events section of the website (https://ir.orgenesis.com/events#/) through Saturday, November 11, 2023. A telephone replay of the call will be available approximately one hour following the call, through Friday, November 25, 2022 and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331for international callers and entering conference ID: 47112.
