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Organovo Holdings Inc ( NYSEMKT:ONVO ). George Perry and Rhamy Belayachi Stock Presentation.
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Organovo Holdings Inc (NYSEMKT:ONVO) George Perry and Rhamy Belayachi Stock Presentation
“We design and create functional human tissues using our proprietary three-dimensional bioprinting technology. Our goal is to build living human tissues that are proven to function like native tissues. With reproducible 3D tissues that accurately represent human biology” ~Organovo • Established April 19, 2007 • Went Public April 2012 • http://www.tedmed.com/talks/show?id=7221&videoId=6761&ref=about-this-talk Company Profile
Organovo CEO, Keith Murphy, assured, “The company is on track with the given schedule to deliver the 3D liver assay to key opinion leaders by April 2014 for testing and launch product by end of year.” • The negative EPS is evidence of the fact that the company is in the research and development stage. ~ http://seekingalpha.com/article/1962501-organovo-why-market-leaders-make-good-bets • As Keith Murphy explained it, a growing number of larger pharmas are moving away from buying tissue and conducting their own research on it. Rather, they want Organovo to, essentially, do the research work in-house and pay for the services. • With the impending liver tissue, Organovo could penetrate the $1.75B in-vitro market by offering lab research service in the toxicology space. • The cosmetic market presents an attractive opportunity for toxicology products as it is an even larger market sector than pharmaceutical testing. • Organovo'sagreement with L'Oreal, involving production of skin tissue for the testing of products, marks the expansion into this sector. Though no terms were disclosed, it's safe to assume Organovo will actively pursue the development of skin tissue in which L'Oreal will support with research dollars. • In 2013, the European Union banned cosmetic products which were tested on animals. This and the general effort towards reducing animal testing will require alternative methods of testing for toxicity, opening the door for bioprinted tissue. • The company is well protected by patent portfolio, holds the greatest amount of resources (~$50M in cash) and arguably has greater access to capital than its competitors. Recent News
Shares of Organovo are listed on the NYSE. The stock posted an increasing trend in 2013 and grew by around 278%. The valuation was around the $3 mark at the start of the year and rose to just around $10. Market performance
Repligen? • Harvard Bioscience? Competition
The company is well protected by patent portfolio, holds the greatest amount of resources (~$50M in cash) and arguably has greater access to capital than its competitors. • In 2013, the European Union banned cosmetic products which were tested on animals. This and the general effort towards reducing animal testing will require alternative methods of testing for toxicity, opening the door for bioprinted tissue. • L'Oreal will support with research dollars. • Organovo is the master of its own market sector. • The cosmetic market presents an attractive opportunity for toxicology products. • The company is on track with the given schedule to deliver the 3D liver assay to key opinion leaders by April 2014 for testing and launch product by end of year. • Brand new ideas. • Will soon expand to other sectors, but for now it is mostly R&D. • Reduce Lab Animal Usage. • Provide safer and more natural drug development and testing. • Sooner or later will expand to transplantation. • Organs don’t need to be identical however, Organovo can produce ones that are functionally equal and that is all that matters. Summary of reasons to buy
NOW, price is lowest given the growth predictions and past experiences. • BUY and HOLD until Q4 2014 or Q1 2015 to see launched products and increased revenue. Buying the stock