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 first quarter ended March 31,
2021.
Vered Caplan, CEO of Orgenesis, stated, “Our
first quarter results illustrate the potential of our new POCare
strategy, as evidenced by more than a four-fold increase in revenue
for the first quarter of 2021. This growth is a direct result of
long-term contracts with our regional partners as they work to
advance our therapeutic pipeline and scale production capabilities
in their respective territories. While we are in the early phases
of our rollout, we achieved positive operating income for the
quarter and are working aggressively to achieve our goal of
building a sustainable long-term profitable business model, which
we believe is achievable given the scalability of our POCare
strategy. We have also maintained a solid balance sheet with $41.8
million of cash as of March 31, 2021.”
“The goal of our POCare platform is to provide
life-changing treatments to large numbers of patients at reduced
costs within the point-of-care setting. Initially, we are focusing
on autologous, cell-based immunotherapies, therapeutics for
metabolic diseases, anti-viral diseases, and tissue regeneration.
Towards this end, we have built a robust therapeutic pipeline,
which includes more than 30 advanced cell and gene therapies. We
continue to expand our pipeline through our growing partnership
with researchers, commercial partners and hospitals. As an example,
in March, we entered into a second phase of collaboration with
Hospital Infantil Universitario Niño Jesús in Madrid with an
exclusive license to commercialize the Celyvir solid tumor therapy.
At the same time, we have invested in new point-of-care
technologies that can be integrated into our new Orgenesis Mobile
Processing Units and Labs (OMPULs).”
“We continue to grow our POCare Network, which
includes facilities in various countries across North America,
Europe, Asia, and the Middle East. As an example, we recently began
a collaboration with the Bambino Gesù Children's Hospital in Rome
to establish a Point of Care Cell Therapy center at the hospital.
We look forward to providing further updates as we advance our
therapeutic pipeline, expand our hospital network and deploy our
OMPULs worldwide.”
“Given the early stage of our POCare network,
our reported revenues reflect just the first phase of our JV
partnerships, as we establish point-of-care systems and
capabilities for our partners. At the same time, these partners are
investing in personnel, regulatory expenses and infrastructure in
their respective territories as a basis for our therapeutic
pipeline advancement. As our JV partners progress towards
commercial production of cell therapies, we expect to continue to
generate revenue from supporting them, as well as from future
royalties. We believe this is a highly scalable model,
substantially de-risked through outside capital from our
partners.”
The Company’s complete financial results are
available in the Company’s Form 10-Q filed with the Securities and
Exchange Commission on May 6, 2021 which is available at
www.sec.gov and on the Company’s website.
Conference Call
The Company plans to host a conference call at
8:30 AM Eastern Time today, May 7, 2021, to discuss the Company’s
financial results for the first quarter ended March 31, 2021, as
well as 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 173027.
A webcast of the call may be accessed at
https://www.webcaster4.com/Webcast/Page/2585/41278 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, May 07, 2022.
A telephone replay of the call will be available approximately one
hour following the call, through Friday, May 21, 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:
41278.
About Orgenesis
Orgenesis 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
StatementsThis 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 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 reliance on, and our ability to
grow, our point-of-care cell therapy platform, our ability to
achieve and maintain overall profitability, our ability to manage
our research and development programs that are based on novel
technologies, our ability to control key elements relating to the
development and commercialization of therapeutic product candidates
with third parties, the timing of completion of clinical trials and
studies, the availability of additional data, outcomes of clinical
trials of our product candidates, the potential uses and benefits
of our product candidates, our ability to manage potential
disruptions as a result of the coronavirus outbreak, the
sufficiency of working capital to realize our business plans, the
development of our POCare strategy, our trans differentiation
technology as therapeutic treatment for diabetes, the technology
behind our in-licensed ATMPs not functioning as expected, our
ability to further our CGT development projects, either directly or
through our JV partner agreements, and to fulfill our obligations
under such agreements, our license agreements with other
institutions, our ability to retain key employees, our competitors
developing better or cheaper alternatives to our products 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:David WaldmanCrescendo
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.CONDENSED
CONSOLIDATED BALANCE SHEETS(U.S. Dollars in
Thousands)(Unaudited)
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
March 31,2021 |
|
|
|
December 31,2020 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
41,841 |
|
|
|
$ |
44,923 |
|
Restricted cash |
|
|
471 |
|
|
|
|
645 |
|
Accounts receivable, net |
|
|
11,354 |
|
|
|
|
3,085 |
|
Prepaid expenses and other receivables |
|
|
679 |
|
|
|
|
1,070 |
|
Grants receivable |
|
|
168 |
|
|
|
|
169 |
|
Inventory |
|
|
200 |
|
|
|
|
185 |
|
Total current assets |
|
|
54,713 |
|
|
|
|
50,077 |
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
348 |
|
|
|
$ |
296 |
|
Investments in associates, net |
|
|
160 |
|
|
|
|
175 |
|
Property, plant and equipment, net |
|
|
3,469 |
|
|
|
|
3,073 |
|
Intangible assets, net |
|
|
12,675 |
|
|
|
|
13,023 |
|
Operating lease right-of-use assets |
|
|
1,341 |
|
|
|
|
1,474 |
|
Goodwill |
|
|
8,602 |
|
|
|
|
8,745 |
|
Other assets |
|
|
802 |
|
|
|
|
821 |
|
Total non-current assets |
|
|
27,397 |
|
|
|
|
27,607 |
|
TOTAL
ASSETS |
|
$ |
82,110 |
|
|
|
$ |
77,684 |
|
ORGENESIS INC.CONDENSED
CONSOLIDATED BALANCE SHEETS (Cont’d)(U.S. Dollars
in Thousands)(Unaudited)
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
March 31,2021 |
|
|
|
December 31,2020 |
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
10,294 |
|
|
|
$ |
8,649 |
|
Accrued expenses and other payables |
|
|
987 |
|
|
|
|
792 |
|
Income tax payable |
|
|
7 |
|
|
|
|
7 |
|
Employees and related payables |
|
|
1,638 |
|
|
|
|
1,463 |
|
Advance payments on account of grant |
|
|
1,126 |
|
|
|
|
692 |
|
Short-term loans and current maturities of long- term loans |
|
|
- |
|
|
|
|
145 |
|
Contract liabilities, mainly related party |
|
|
59 |
|
|
|
|
59 |
|
Current maturities of finance leases |
|
|
18 |
|
|
|
|
19 |
|
Current maturities of operating leases |
|
|
474 |
|
|
|
|
485 |
|
Current maturities of convertible loans |
|
|
4,327 |
|
|
|
|
3,974 |
|
Total current liabilities |
|
|
18,930 |
|
|
|
|
16,285 |
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Non-current operating leases |
|
$ |
895 |
|
|
|
$ |
1,020 |
|
Convertible loans |
|
|
7,082 |
|
|
|
|
7,200 |
|
Retirement benefits obligation |
|
|
91 |
|
|
|
|
74 |
|
Non-current finance leases |
|
|
57 |
|
|
|
|
64 |
|
Other long-term liabilities |
|
|
303 |
|
|
|
|
313 |
|
Total long-term
liabilities |
|
|
8,428 |
|
|
|
|
8,671 |
|
TOTAL
LIABILITIES |
|
|
27,358 |
|
|
|
|
24,956 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
|
|
|
Common stock of $0.0001 par
value, 145,833,334 shares authorized, 24,469,406 and 24,223,093
shares issued and outstanding as of March 31, 2021 and December 31,
2020, respectively |
|
|
3 |
|
|
|
|
3 |
|
Additional paid-in capital |
|
|
142,449 |
|
|
|
|
140,397 |
|
Receipts on account of shares to be allotted |
|
|
424 |
|
|
|
|
- |
|
Accumulated other comprehensive income |
|
|
471 |
|
|
|
|
748 |
|
Treasury stock, 57,615 and 55,309 shares as of March 31, 2021 and
December 31, 2020, respectively |
|
|
(260 |
) |
|
|
|
(250 |
) |
Accumulated deficit |
|
|
(88,538 |
) |
|
|
|
(88,319 |
) |
Equity attributable to Orgenesis Inc. |
|
|
54,549 |
|
|
|
|
52,579 |
|
Non-controlling interest |
|
|
203 |
|
|
|
|
149 |
|
Total equity |
|
|
54,752 |
|
|
|
|
52,728 |
|
TOTAL LIABILITIES AND
EQUITY |
|
$ |
82,110 |
|
|
|
$ |
77,684 |
|
ORGENESIS INC.CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(U.S.
Dollars in Thousands, Except Share and Loss Per Share Amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, 2021 |
|
|
|
March 31, 2020 |
|
Revenues |
|
$ |
8,232 |
|
|
|
$ |
1,385 |
|
Revenues from related
party |
|
|
1,157 |
|
|
|
|
493 |
|
Total revenues |
|
|
9,389 |
|
|
|
|
1,878 |
|
Cost of services and other
research and development expenses |
|
|
6,127 |
|
|
|
|
4,873 |
|
Amortization of intangible
assets |
|
|
238 |
|
|
|
|
223 |
|
Selling, general and
administrative expenses |
|
|
2,968 |
|
|
|
|
3,518 |
|
Other income, net |
|
|
(25 |
) |
|
|
|
(3 |
) |
Operating loss (income) |
|
|
(81 |
) |
|
|
|
6,733 |
|
Financial expenses, net |
|
|
233 |
|
|
|
|
329 |
|
Share in net loss of
associated companies |
|
|
15 |
|
|
|
|
- |
|
Loss from continuing operation
before income taxes |
|
|
167 |
|
|
|
|
7,062 |
|
Tax income |
|
|
(2 |
) |
|
|
|
(47 |
) |
Net loss from continuing
operation |
|
|
165 |
|
|
|
|
7,015 |
|
Net income from discontinued
operations, net of tax |
|
|
- |
|
|
|
|
(76,465 |
) |
Net loss (income) |
|
|
165 |
|
|
|
|
(69,450 |
) |
Net loss (income) attributable
to non-controlling interests from continuing operation |
|
|
54 |
|
|
|
|
(39 |
) |
Net loss attributable to
non-controlling interests from discontinued operations |
|
|
- |
|
|
|
|
(492 |
) |
Net loss (income) attributable
to Orgenesis Inc. |
|
|
219 |
|
|
|
|
(69,981 |
) |
|
|
|
|
|
|
|
|
|
|
Loss (Earning) per
share: |
|
|
|
|
|
|
|
|
|
Basic and diluted from
continuing operations |
|
$ |
0.01 |
|
|
|
$ |
0.39 |
|
Basic and diluted from
discontinued operations |
|
$ |
- |
|
|
|
$ |
(4.62 |
) |
Basic and diluted |
|
$ |
0.01 |
|
|
|
$ |
(4.23 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation of Basic and Diluted loss per
share: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
24,189,175 |
|
|
|
|
17,780,830 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
(income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from Continuing Operation |
|
$ |
165 |
|
|
|
$ |
7,015 |
|
Net income from Discontinued Operations, Net of Tax |
|
|
- |
|
|
|
|
(76,465 |
) |
Other Comprehensive loss – Translation adjustment |
|
|
277 |
|
|
|
|
644 |
|
Release of translation adjustment due to sale of subsidiary |
|
|
- |
|
|
|
|
(194 |
) |
Comprehensive loss
(income) |
|
|
442 |
|
|
|
|
(69,000 |
) |
Comprehensive loss (income)
attributed to non-controlling interests from continuing
operation |
|
|
54 |
|
|
|
|
(39 |
) |
Comprehensive income
attributed to non-controlling interests from discontinued
operation |
|
|
- |
|
|
|
|
(492 |
) |
Comprehensive loss (income)
attributed to Orgenesis Inc. |
|
$ |
496 |
|
|
|
$ |
(69,531 |
) |
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