The developer of the NovoGen MMX Bioprinter, Organovo Holdings (OTC: ONVO), continued to attract traders following an “outperform” rating a week ago from Zacks Small Cap Research. In yesterday’s trading session, the share price rose by $0.07 to $2.23 in the first hour of trading and resisted short sellers for the rest of the day.
Through its cutting edge technologies, Organovo has been the center of attraction during the past year in the field of tissue engineering. Tissue engineering, a complex process of combining living cells, natural biomaterials and growth factors, presents considerable challenges to the classical approach. In this regard, Organovo has developed the first 3D bioprinter christened as NovoGen MMX. With its speed and precision, the bioprinter enables the creation of tissue models suitable for research and drug discovery. Zacks Small Cap Research pointed out that “NovoGen MMX bioprinter has the ability to generate three-dimensional constructs that have all or some of their components comprised entirely of cells”.
Organovo has plans to showcase its bioprinter for a broad range of applications including regenerative medicines, and also plans to form strategic alliances with major pharmaceutical companies to derive an increase in revenue. Currently, the bioprinter is used for new drug development and toxicology testing. Organovo received its first company patent and key founder patent in the month of July 2012. The company is currently in the process of creating application-specific protection and obtaining coverage in several countries. Considering the growth prospects, the company relocated to a 15,539 sq. ft. facility in San Diego, California, three months ago. With a current cash balance sufficient to keep the operations alive until 2013 and the possibility of signing up additional licensing contracts with advance payments, the company is expected to launch its first commercial product in the year 2014.
Organovo has active collaborations with Pfizer (signed December, 2010) and United Therapeutics (signed October 2011) for conducting research on treatments for pulmonary hypertension. Organovo became public through a reverse merger in February 2012. Through a private placement in the month of March 2012, the company issued 15.25 million shares of common stock and 16.75 million five-year warrants. In the month of June 2012, a report on companies dominating the 3-D printing revolution skyrocketed the share price to $11.00 before subsiding to $2.00 on account of a sell-off by well-informed investors.
With the long-term growth story still intact, the market seems to remain attracted to Organovo, albeit at lower levels. The second quarter 2012 revenues have increased approximately 49% on a year-on-year basis. The company expects to capitalize on the contracts with Pfizer and United Therapeutics in the second half of 2012.
Organovo ended today’s session at $2.23, unchanged from the previous day’s closing with a volume of 143,806.