Orgenesis Inc. (NASDAQ: ORGS)
(“Orgenesis” or the “Company”), a global biotech company working to
unlock the full potential of cell and gene therapies (CGTs), today
reported financial results for the year ended December 31, 2020 and
provided a business update.
Vered Caplan, CEO of Orgenesis, commented, “Just
over a year ago, we completed the sale of one of our business
divisions, which provided centralized manufacturing subcontracting
services to cell and gene biotech companies. This activity was
incorporated in the Masthercell subsidiary, a contract development
manufacturing organization (CDMO). The CDMO was sold for $315
million, generating approximately $127 million of proceeds to
Orgenesis. We determined it was the right time to sell Masthercell
in order to maximize value for our shareholders and accelerate the
rollout of our other divisions, with a focus on expanding our
point-of-care business. Over the past year, we have been hard at
work building the foundation for our POCare platform, which we
believe has the potential to unlock value across the cell and gene
therapy industry. Specifically, the historical centralized
production model and resulting high costs of these therapies has
inhibited uptake by payors and limited availability for
patients. A case in point is CAR-T therapies, which are
transforming cancer treatment, but can range in the hundreds of
thousands of dollars per patient, per year. In contrast, through
our decentralized POCare platform, we are able to provide
autologous cell and gene therapies to patients in need at the
point-of-care, thereby dramatically lowering costs, streamlining
logistics and enhancing distribution.”
“Towards this end, we have combined the
development of three pillars that are the basis for the POCare
platform: Therapies, Technologies and Network. The first pillar,
our POCare Therapies, involves licensing and development of
breakthrough cell and gene therapies, that are combined with our
second pillar of POCare Technologies. Using the advanced array of
automation technologies that we have either licensed, developed or
partnered with, the therapies are adapted for onsite production and
supply. In turn, we support all stages of development and
validation of the combination of therapies and processing
technologies, from the clinic all the way through to
commercialization. To date, we have developed, purchased or
in-licensed more than 30 therapies and continue to expand our
pipeline through our partnership with the POCare centers.
Importantly, we believe our expansive therapeutic pipeline is on
par or superior to many of the world’s premier cell and gene
therapy companies. We also have our first commercial product
on the market, KYSLECEL®, following the acquisition of
Koligo. KYSLECEL is commercially available in the United
States for chronic and recurrent acute pancreatitis. KYSLECEL is an
excellent illustration of our strategy, whereby we are adapting
this therapy for onsite automated production and supply through our
POCare platform, thus enabling the availability of this
therapy.”
“This ties into the third pillar of our POCare
platform, our POCare Network, where we are partnering with leading
hospitals and research centers in 14 countries and setting up GMP
processing and supply units as the basis for a harmonized supply
network for our therapies. In doing so, we have realized that
having a compliant GMP clean room facility is a major bottle neck
for many of these institutions, and even for those who do have one,
it is usually insufficient in size. Building up high-grade clean
rooms is a costly and lengthy process, and running such clean rooms
requires highly trained personnel, as well as implementing complex
and costly maintenance procedures. In line with our commitment of
enabling cell and gene therapies for all, we have invested heavily
in new point-of-care technologies that can be integrated into our
new Orgenesis Mobile Processing Units and Labs (OMPULs).”
“We have made significant progress in the
validation, risk analysis, regulatory and other tasks related to
the OMPULs, which will be utilized to produce our POCare
Therapies. These mobile systems can be deployed onsite at a
hospital or medical institution, and can enable parallel processing
of therapies at a reduced cost, without the logistical nightmares
of a centralized production facility or the difficulty of building
cleanrooms in the hospitals. Some of the key advantages of
this system are the short set up time, small footprint, lower
costs, automated operation, modular format, and highly scalable
design. All of these factors enable us to produce autologous
cell and gene therapies, along with viral processing capabilities,
directly at the point of care in a consistent and standardized
manner in all locations. We believe the OMPULs are an
important step in the quick expansion of our capacity, and we look
forward to expanding both the quantity and locations of our
systems.”
“We have already established POCare development
and service centers in the United States, Belgium, Israel and South
Korea, and have established 10 joint venture agreements with
regional partners that are financially committed to validate our
therapies according to local regulatory requirements. In
partnership with them, we have set up a network of hospitals and
other partners in a total of 14 countries to date and we expect to
sign agreements with many more premier institutions in the coming
weeks and months. We have also utilized these partners to develop
and adapt our POCare systems to local requirements.”
“I am pleased to report that our revenues nearly
doubled in 2020 to $7.7 million, which reflects growth in revenues
related to technology transfer, setup, and validation of both our
therapies and systems for clinical use. We are committed to
expanding our capacity and enabling the supply of our therapies
globally, which provides us visibility into our future revenue
growth. Based on just the existing contracts in hand, we
anticipate for revenue to more than double in 2021. I am
highly appreciative of our global network partners that helped us
to achieve an immense amount of progress over the last year, while
facing the tremendous personal and global logistic hardships
imposed by COVID-19. We look forward to providing further updates
as we advance our therapeutic pipeline, expand our hospital network
and deploy our OMPULs worldwide.”
Conference Call
The Company plans to host a conference call at 8:30 AM Eastern
Time today, March 9, 2021, to discuss the Company’s financial
results for the 2020 fiscal year ended December 31, 2020, as well
as the Company’s corporate progress and other
developments.
The conference call will be available via telephone by dialing
toll free 877-545-0320 for U.S. callers or +1 973-528-0016 for
international callers and using entry code 796258. A webcast of the
call may be accessed at
https://www.webcaster4.com/Webcast/Page/2585/40294 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/overview#/)
through Wednesday, March 9, 2022. A telephone replay of the call
will be available approximately one hour following the call,
through Tuesday, March 23, 2021 and can be accessed by dialing
877-481-4010 for U.S. callers or +1 919-882-2331 for international
callers and entering conference ID: 40294.
About OrgenesisOrgenesis is a
global biotech company working to unlock the full potential of
cell and gene therapies (CGTs) in an affordable and accessible
format. The Orgenesis Point of Care Platform is comprised of three
enabling components: a pipeline of licensed POCare
Therapeutics that are processed and produced in
closed, automated POCare
Technology systems across a
collaborative POCare Network.
Orgenesis identifies promising new therapies and leverages its
POCare Platform to provide a rapid, globally harmonized pathway for
these therapies to reach and treat large numbers of patients at
lowered costs through efficient, scalable, and decentralized
production. The POCare Network brings together patients, doctors,
industry partners, research institutes and hospitals worldwide to
achieve harmonized, regulated clinical development and production
of the therapies. Learn more about the work Orgenesis is doing
at www.orgenesis.com.
Notice Regarding Forward-Looking
Statements This press release contains forward-looking
statements which are made pursuant to the safe harbor provisions of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities and Exchange Act of 1934, as amended. These
forward-looking statements involve substantial uncertainties and
risks and are based upon our current expectations, estimates and
projections and reflect our beliefs and assumptions based upon
information available to us at the date of this press release. We
caution readers that forward-looking statements are predictions
based on our current expectations about future events. These
forward-looking statements are not guarantees of future performance
and are subject to risks, uncertainties and assumptions that are
difficult to predict. Our actual results, performance or
achievements could differ materially from those expressed or
implied by the forward-looking statements as a result of a number
of factors, including, but not limited to, our ability to further
develop ranpirnase; our reliance on, and our ability to grow, our
point-of-care cell therapy platform; our ability to develop
cell-based and antiviral technologies; our ability to effectively
use the net proceeds from the sale of Masthercell; our ability to
achieve and maintain overall profitability; the development of our
POCare strategy; the sufficiency of working capital to realize our
business plans; our partners’ ability to develop therapies based on
our point-of-care cell therapy platform; technology not functioning
as expected; our ability to retain key employees; our ability to
satisfy the rigorous regulatory requirements for new procedures and
therapies; our competitors developing better or cheaper
alternatives; the impact of COVID-19 on our operations and the
risks and uncertainties discussed under the heading "RISK FACTORS"
in Item 1A of our Annual Report on Form 10-K for the fiscal year
ended December 31, 2020, and in our other filings with the
Securities and Exchange Commission. We undertake no
obligation to revise or update any forward-looking statement for
any reason.
IR contact for Orgenesis:Crescendo
Communications, LLCTel: 212-671-1021Orgs@crescendo-ir.com
Communications contact for
OrgenesisImage Box CommunicationsNeil Hunter / Michelle
BoxallTel +44 (0)20 8943
4685neil@ibcomms.agency / michelle@ibcomms.agency
ORGENESIS
INC.CONSOLIDATED BALANCE
SHEETS(U.S. Dollars, in thousands)
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
44,923 |
|
|
$ |
107 |
|
Restricted cash |
|
|
645 |
|
|
|
467 |
|
Accounts receivable, net |
|
|
3,085 |
|
|
|
1,831 |
|
Prepaid expenses and other receivables |
|
|
1,070 |
|
|
|
382 |
|
Grants receivable |
|
|
169 |
|
|
|
204 |
|
Inventory |
|
|
185 |
|
|
|
136 |
|
Current assets of discontinued operations (See Note 3) |
|
|
- |
|
|
|
75,221 |
|
Total current assets |
|
|
50,077 |
|
|
|
78,348 |
|
NON CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
Deposits |
|
$ |
296 |
|
|
$ |
299 |
|
Loan to related party |
|
|
- |
|
|
|
2,623 |
|
Investments in associates, net |
|
|
175 |
|
|
|
- |
|
Property, plants and equipment, net |
|
|
3,073 |
|
|
|
2,305 |
|
Intangible assets, net |
|
|
13,023 |
|
|
|
3,348 |
|
Operating lease right-of-use assets |
|
|
1,474 |
|
|
|
725 |
|
Goodwill |
|
|
8,745 |
|
|
|
4,812 |
|
Other assets |
|
|
821 |
|
|
|
35 |
|
Total non-current assets |
|
|
27,607 |
|
|
|
14,147 |
|
TOTAL
ASSETS |
|
$ |
77,684 |
|
|
$ |
92,495 |
|
ORGENESIS
INC.CONSOLIDATED BALANCE
SHEETS(U.S. Dollars, in thousands)
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
Liabilities and equity |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
8,649 |
|
|
$ |
5,549 |
|
Accrued expenses and other payables |
|
|
792 |
|
|
|
1,615 |
|
Income tax payable |
|
|
7 |
|
|
|
- |
|
Employees and related payables |
|
|
1,463 |
|
|
|
1,672 |
|
Advance payments on account of grant |
|
|
692 |
|
|
|
523 |
|
Short-term loans and current maturities of long-term loans |
|
|
145 |
|
|
|
391 |
|
Contract liabilities |
|
|
59 |
|
|
|
325 |
|
Current maturities of finance leases |
|
|
19 |
|
|
|
- |
|
Current maturities of operating leases |
|
|
485 |
|
|
|
357 |
|
Current maturities of convertible loans |
|
|
3,974 |
|
|
|
416 |
|
Current liabilities of discontinued operations (See Note 3) |
|
|
- |
|
|
|
31,586 |
|
TOTAL CURRENT LIABILITIES |
|
|
16,285 |
|
|
|
42,434 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
|
|
Non-current operating leases |
|
$ |
1,020 |
|
|
$ |
455 |
|
Convertible loans |
|
|
7,200 |
|
|
|
12,143 |
|
Retirement benefits obligation |
|
|
74 |
|
|
|
41 |
|
Deferred taxes |
|
|
- |
|
|
|
58 |
|
Long-term debt and finance leases |
|
|
64 |
|
|
|
- |
|
Other long-term liabilities |
|
|
313 |
|
|
|
331 |
|
TOTAL LONG-TERM LIABILITIES |
|
|
8,671 |
|
|
|
13,028 |
|
TOTAL LIABILITIES |
|
|
24,956 |
|
|
|
55,462 |
|
COMMITMENTS |
|
|
|
|
|
|
|
|
REDEEMABLE NON
CONTROLLING INTEREST OF DISCONTINUED OPERATIONS (See Note
3) |
|
|
- |
|
|
|
30,955 |
|
EQUITY: |
|
|
|
|
|
|
|
|
Common stock of $0.0001 par
value, 145,833,334 shares authorized, 24,223,093 and 16,140,962
shares issued as of December 31, 2020 and December 31, 2019,
respectively |
|
|
3 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
140,397 |
|
|
|
94,691 |
|
Accumulated other comprehensive income |
|
|
748 |
|
|
|
213 |
|
Treasury stock at December 31, 2020 55,309 shares |
|
|
(250 |
) |
|
|
- |
|
Accumulated deficit |
|
|
(88,319 |
) |
|
|
(89,429 |
) |
Equity attributable to Orgenesis Inc. |
|
|
52,579 |
|
|
|
5,477 |
|
Non-controlling interests |
|
|
149 |
|
|
|
601 |
|
TOTAL EQUITY |
|
|
52,728 |
|
|
|
6,078 |
|
TOTAL LIABILITIES AND
EQUITY |
|
$ |
77,684 |
|
|
$ |
92,495 |
|
ORGENESIS
INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS(U.S. Dollars, in thousands, except share and
per share amounts)
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
Revenues |
|
$ |
6,177 |
|
|
$ |
2,629 |
|
Revenues from related
party |
|
|
1,475 |
|
|
|
1,270 |
|
Total revenues |
|
|
7,652 |
|
|
|
3,899 |
|
Cost of research and
development and research and development services, net |
|
|
83,986 |
|
|
|
14,014 |
|
Amortization of intangible
assets |
|
|
478 |
|
|
|
430 |
|
Selling, general and
administrative expenses |
|
|
18,973 |
|
|
|
11,451 |
|
Other income, net |
|
|
(4 |
) |
|
|
(21 |
) |
Operating loss |
|
|
95,781 |
|
|
|
21,975 |
|
Financial expenses, net |
|
|
1,061 |
|
|
|
843 |
|
Share in net income of
associated companies |
|
|
(106 |
) |
|
|
- |
|
Loss from continuing operation
before income taxes |
|
|
96,736 |
|
|
|
22,818 |
|
Tax income |
|
|
(1,609 |
) |
|
|
(229 |
) |
Net loss from continuing
operation |
|
|
95,127 |
|
|
|
22,589 |
|
Net loss (income) from
discontinued operations, net of tax |
|
|
(95,706 |
) |
|
|
3,452 |
|
Net loss (income) |
|
$ |
(579 |
) |
|
$ |
26,041 |
|
Net loss attributable to
non-controlling interests (including redeemable) from continuing
operation |
|
|
(39 |
) |
|
|
(99 |
) |
Net loss attributable to
non-controlling interests (including redeemable) from discontinued
operations |
|
|
(492 |
) |
|
|
(1,821 |
) |
Net loss (income) attributable
to Orgenesis Inc. |
|
$ |
(1,110 |
) |
|
$ |
24,121 |
|
Loss (income) per
share: |
|
|
|
|
|
|
|
|
Basic and diluted from continuing operations |
|
$ |
4.46 |
|
|
$ |
1.41 |
|
Basic and diluted from discontinued operations |
|
$ |
(4.75 |
) |
|
$ |
0.36 |
|
Basic and diluted |
|
$ |
(0.29 |
) |
|
$ |
1.77 |
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation of Basic and Diluted loss per
share: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
21,320,314 |
|
|
|
15,907,995 |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
(income): |
|
|
|
|
|
|
|
|
Net loss from Continuing Operation |
|
$ |
95,127 |
|
|
$ |
22,589 |
|
Net loss (income) from Discontinued Operations, Net of Tax |
|
|
(95,706 |
) |
|
|
3,452 |
|
Other Comprehensive (income) loss – Translation adjustment |
|
|
(341 |
) |
|
|
456 |
|
Release of translation adjustment due to sale of subsidiary |
|
|
(194 |
) |
|
|
- |
|
Comprehensive loss
(income) |
|
$ |
(1,114 |
) |
|
$ |
26,497 |
|
Comprehensive loss attributed
to non-controlling interests (including redeemable) |
|
|
(39 |
) |
|
|
(99 |
) |
Comprehensive loss attributed
to non-controlling interests (including redeemable) from
discontinued operations |
|
|
(492 |
) |
|
|
(1,821 |
) |
Comprehensive loss (income)
attributed to Orgenesis Inc. |
|
$ |
(1,645 |
) |
|
$ |
24,577 |
|
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