Business

Organovo reports 11% revenue increase in Q1 2018 due to tissue research demand

Following a demand for tissue development research, 3D bioprinting material provider Organovo (NASDAQ:ONVO) has reported a total revenue of $1.0 million for the first quarter of FY 2018, an 11% increase on the same period in 2017.

With the results, the company also affirms its outlook for the full-year, expecting total revenue to reach $6.0 million – $8.5 million by the end of FY 2018, compared to annual turnover of $4.2 million in 2017.

Organovo Founder and Chairman Emeritus Keith Murphy (center right) hosts ringing the NASDAQ opening bell in October 2016. Photo via Organovo on Twitter
Organovo Founder and Chairman Emeritus Keith Murphy (center right) hosts ringing the NASDAQ opening bell in October 2016. Photo via Organovo on Twitter

Operations and services

Total loss from operations in Q1 2018 was $10,200,000, and Q1 2017 reported $8,777,000. The increased expenditure was received across the board in cost of revenues, general and administrative expenses, and research and development.

In Q1 2017, Organovo revenue from products and services was valued at $674,000 for period ending June 30 2016. In the same period of Q1 2018, revenue gathered from tissue sales and research as a service created an increase to $944,000.

3D bioprinted liver tissues used for drug screening. Photo via Organovo
3D bioprinted liver tissues used for drug screening. Photo via Organovo

In a statement on the report Organovo CEO Taylor J. Crouch comments, “Demand for compound screening in disease models is growing, with new applications frequently emerging as clients seek novel solutions in their drug discovery workflow.”

Meeting demand 

Placing special emphasis on the company’s R&D activities, Crouch highlights requests for new biological models, and the success of tissue treatments in animals. He asserts that around 70% of tissue research service requests were received from existing clients.

In this period, the company also announced a collaboration with the University of Virginia to develop treatment for volumetric muscle loss (VML).

New organ model requests

New requests from Organovo clients have been to create true-to-life cells models of Hepatitis B and ribonucleic acid (RNA) which is involved in the transmission of genetic data.

(a) comparison of DNA with RNA (b) single stranded, RNA can take on multiple forms by folding upon itself. Image via Lumen Learning
(a) comparison of DNA with RNA (b) single stranded, RNA can take on multiple forms by folding upon itself. Image via Lumen Learning

To be 3D bioprinted in lab-on-a-chip type devices, the cell models may be used to test drugs and other substances, or to develop therapeutic patches for parts of the body.

Throughout FY 2018, Organovo is committed to continuing live studies of its proprietary liver and kidney materials. Crouch also confirmed that the company will start seeking orphan designation of its tissues.

U.S. designation would mean that Organovo products could be used treat a rare disease or condition upon request.

Closing statements

Organovo’s consolidated statement of operations and balance sheet can be viewed below.

Concluding the release Crouch comments, “Our long-term plan remains founded on targeting attractive and growing markets with critical unmet needs, extending our first mover advantage, and capitalizing on our technology leadership to grow our product and service offerings.”

Organovo Q1 2018 consolidated statements of operations. Image via Organovo
Organovo Q1 2018 consolidated statements of operations. Image via Organovo
Organovo balance sheet for Q1 2018. Image via Organovo
Organovo balance sheet for Q1 2018. Image via Organovo

A full report of the Organovo’s earnings in Q1 2018 can be viewed online here.

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Featured image: Bio-fluorescence in ExVive 3D printed human liver tissue. Image via Organovo