Organovo Holdings Inc (NASDAQ:ONVO) issued financial report for the fiscal Q2 2018 and revised its full-year FY2018 outlook. The firm is shifting the commercial focus and platform development initiatives toward higher-value and higher-demand disease modeling services. While company has had substantial quick uptake for its disease modeling trials, these revenues are not expected to offset a smaller than projected input from toxicology research services in the remaining period of its 2018 fiscal year.
As a result, Organovo Holdings has reduced its FY2018 total revenue outlook. The firm considers its focus shift on disease modeling platforms together with its IND-track therapeutics plan will best answer the value of its 3D tissue printing know-hows. As an outcome of its change in focus and the recently reported organizational and restructuring realignment, the firm also has favorably updated its negative adjusted EBITDA projection.
Organovo posted fiscal Q2 2018 total revenue of $1.4 million, a drop of 2% from the prior-year period, while a jump of 37% over the fiscal Q1 2018. Net loss came at $9.5 million for the fiscal Q2 2018, versus $9.4 million, for the fiscal Q2 2017. Negative Adjusted EBITDA came at $6.6 million in Q2 2018, as against $7.1 million for the comparable period of 2017.
Taylor J. Crouch, the CEO of Organovo, expressed that they possess the ability to monetize their platform in several ways, including the provision of key human cells for research purposes, compound licensing deals that capitalize on company’s technology, the ongoing advancement of novel therapeutics and screening in disease models.
Customers are working with company across this value chain, enabling them to target the comprehensive drug discovery and advancement ecosystem. Provided the enhanced adoption by several sophisticated clients of Organovo disease modeling capabilities, and the vital role that “NAFLD” and non-alcoholic steatohepatitis play in pharmaceutical R&D, they believe their move to this space exhibits the highest value prospect for their commercial business.