SAN DIEGO, March 13, 2015 /PRNewswire/ -- Organovo
Holdings, Inc. (NYSE MKT: ONVO; "Organovo"), is providing the
following market update:
Organovo remains extremely excited about the early commercial
success of our exVive3D™ Human Liver Tissue and we continue to
believe it has a strong commercial future in front of it. Nothing
has changed from the Company's perspective, nor are we in
possession of any new information that would dampen our optimism
about the future of our exVive3D™ Human Liver Tissue or the future
of Organovo. As we've said before, we believe that as we
penetrate the toxicology market, our exVive3D™ Human Liver Tissue
and service will grow into the tens of millions in annual revenue,
and has $100M+ revenue potential in the future as we pursue
diligent sales and marketing efforts (inside of a total addressable
market of over $1B). We believe
we're on the way to building a strong profit center in research
tissues for Organovo, which will expand with our launch of 3D
bioprinted kidney tissues in 2016.
In addition to having excellent operational execution, Organovo
is also financially strong. Our balance sheet is strong with
no debt, more than $50 million in
cash on hand, and a prior quarter burn rate that annualized at
approximately $19 million per
year. We have recently communicated we expect spending on
current projects to ramp our annual burn rate to $25 million per year; but even at that higher
rate of spending, we have approximately two years of operating cash
on hand.
Organovo's Board and management team are focused on executing
our goals and remain confident in the Company's technology and
team. The Company has hit every milestone it has described to
investors on a timely basis since going public in 2012. We
are proud of our accomplishments to date, and we look forward to
continuing to execute our strategic vision, including a goal to
build long-term shareholder value. We believe we are the
leader in 3D bioprinting and 3D tissues and we are working
diligently to retain leadership and capture value for our
shareholders.
About Organovo Holdings, Inc.
Organovo designs and creates functional, three-dimensional human
tissues for use in medical research and therapeutic applications.
The Company develops 3D human disease models through internal
development and in collaboration with pharmaceutical and academic
partners. Organovo's 3D human tissues have the potential to
accelerate the drug discovery process, enabling treatments to be
developed faster and at lower cost. The company recently launched
its initial product of the planned exVive3D™ portfolio
offering, a 3D Human Liver Tissue for use in Toxicology and other
preclinical drug testing. Additional products are in development,
with anticipated release for an exVive3DTM Human Kidney Tissue in
the latter half of calendar year 2016. The Company also actively
conducts early research on specific tissues for therapeutic use in
direct surgical applications. In addition to numerous scientific
publications, the Company's technology has been featured in The
Wall Street Journal, Time Magazine, The Economist, and numerous
other media outlets. Organovo is changing the shape of medical
research and practice. Learn more at www.organovo.com.
Sign up for email updates and connect with us
on Twitter (@Organovo).
Safe Harbor Statement
Any statements contained in this press release that do not
describe historical facts may constitute forward-looking statements
as that term is defined in the Private Securities Litigation Reform
Act of 1995. Any forward-looking statements contained herein are
based on current expectations, but are subject to a number of risks
and uncertainties. The factors that could cause actual future
results to differ materially from current expectations include, but
are not limited to, risks and uncertainties relating to the
Company's ability to develop, market and sell products based on its
technology; the expected benefits and efficacy of the Company's
products and technology; the market acceptance of the Company's
products; and the Company's business, research, product
development, regulatory approval, marketing and distribution plans
and strategies. These and other factors are identified and
described in more detail in our filings with the SEC, including our
Quarterly Report on Form 10-Q filed with the SEC on February 6, 2015. You should not place
undue reliance on these forward-looking statements, which speak
only as of the date that they were made. These cautionary
statements should be considered with any written or oral
forward-looking statements that we may issue in the future. Except
as required by applicable law, including the securities laws of
the United States, we do not
intend to update any of the forward-looking statements to conform
these statements to reflect actual results, later events or
circumstances or to reflect the occurrence of unanticipated
events.
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SOURCE Organovo Holdings, Inc.