Item 7.01
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Regulation FD Disclosure.
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On January 7, 2019, Organogenesis Holdings Inc. (ORGO or the Company) announced revenue guidance for the fourth quarter and year ended
December 31, 2018 and the year ended December 31, 2019. This guidance supersedes the projected financial information for Organogenesis Inc. included in the Form
8-K
filed by Avista Healthcare Public
Acquisition Corp. (AHPAC) with the Securities and Exchange Commission on August 17, 2018, which information was prepared in conjunction with the business combination in which, among other things, Organogenesis Inc. became a wholly
owned subsidiary of AHPAC and AHPAC changed its name to Organogenesis Holdings Inc.
Fourth Quarter and Fiscal 2018
The Company expects to report net revenue for the fourth quarter of between $62.1 million and $63.1 million, resulting in expected net revenue for
the year ended December 31, 2018 of between $192 million and $193 million. ORGO reported net revenue for the year ended December 31, 2017 of $198.5 million.
The fiscal 2018 forecast assumes (i) net revenue from Advanced Wound Care products of between $163.1 million and $164 million, representing a
decrease in revenue of 8% to 9% over 2017 and (ii) net revenue from Surgical & Sports Medicine products of between $28.9 million and $29 million, representing an increase of 47% to 48% over 2017. In addition, ORGO has assumed
for purposes of this forecast that net revenue from the sale of its PuraPly products will represent between $68.1 million and $69.1 million of total net revenue, representing a decrease of 37% to 38% over 2017.
Fiscal 2019
In addition, the Company announced
total net revenue expectations for the year ended December 31, 2019. For the fiscal 2019 period, the Company expects total net revenue of between $248 million and $259 million, representing growth of approximately 29% to 35%
year-over-year as compared to the midpoint of the expected 2018 results of approximately $192.5 million. The fiscal 2019 forecast assumes (i) net revenue from Advanced Wound Care products of between $219 million and $229 million,
representing growth of approximately 34% to 40% year-over-year as compared to the midpoint of the expected 2018 results of approximately $163.6 million and (ii) net revenue from Surgical & Sports Medicine products of between
$29.5 million and $31 million, representing growth of approximately 2% to 7% year-over-year as compared to the midpoint of the expected 2018 results of approximately $28.9 million. The fiscal 2019 forecast also assumes that net
revenue from the sale of its PuraPly products will represent between $96 million and $103 million of total net revenue, representing growth of approximately 40% to 50% year-over-year as compared to the midpoint of the expected 2018 results
of approximately $68.6 million.
Corporate Presentation
A copy of the slide presentation that will be used by representatives of the Company in connection with investor meetings or presentations from time to time
(the Corporate Presentation) is attached to this Current Report on Form
8-K
as Exhibit 99.1. The Corporate Presentation is current as of January 7, 2019, and the Company disclaims any
obligation to correct or update this material in the future.
The information in this Form
8-K
(including Exhibit
99.1) shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Cautionary Note Regarding Forward-Looking Statements
The Company makes forward-looking statements in this report within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements relate to expectations or forecasts for future events. Forward-looking statements may be identified by the use of words such as will, forecast, intend, seek, target,
anticipate, believe, expect, estimate, plan, outlook, extend, and project and other similar expressions that predict or indicate future events or trends
or that are not statements of historical matters. Such forward looking statements include statements relating to the Companys expected revenue for fiscal 2018 and fiscal 2019 and the breakdown of such revenues in both its Advanced Wound Care
and Surgical & Sports Medicine categories as well as the estimated revenue contribution of its PuraPly products. Forward looking statements with respect to the continued existence and operations of the Company, strategies, prospects and
other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from