Organovo, the leading publicly traded bioprinting company, reported fiscal first-quarter total revenue of $1.0 million, which consisted largely of product and service revenue. Total Organovo revenues increased 11 percent versus the comparable period of fiscal 2017. Net loss was $10.1 million, or $0.10 per share, for the fiscal first quarter of 2018, as compared to $8.8 million, or $0.09 per share, for the fiscal first quarter of 2017. Negative Adjusted EBITDA(2) for the first quarter was $7.5 million, as compared to $7.1 million for the prior-year period.
“We’re tracking to our plan through the first quarter of fiscal 2018, delivering total revenue that was in-line with our outlook and affirming our guidance across the board,” said Taylor J. Crouch, CEO, Organovo. “We continued to see a healthy balance of new sales and repeat business during the period, with nearly 70% of orders for tissue research services coming from existing clients as we more deeply engage our customers. Demand for compound screening in disease models is growing, with new applications frequently emerging as clients seek novel solutions in their drug discovery workflow. Beyond recognized areas such as liver fibrosis and non-alcoholic steatohepatitis (“NASH”), recent exploratory applications include Hepatitis B and RNA therapeutics. These are all good leading indicators of broader adoption as we seek to move customers to routine use of our solutions.”
Product and service revenue was $0.9 million, up 40% percent from the prior-year period, largely driven by an increase in customer contracts for the Company’s tissue research services. Cost of revenues was $0.3 million, an increase of 79 percent from the prior-year period, reflecting a gain in product and service revenue.
Research and development costs increased 13 percent year-over-year to $5.0 million, primarily due to increased materials and outside services costs related to the Company’s ongoing validation studies. Selling, general and administrative expenses increased 16 percent from the prior-year period to $5.9 million, reflecting higher non-cash stock-based compensation and employee related expense.
Crouch continued, “In the therapeutics space, we continue to successfully achieve key objectives as we advance our liver therapeutic tissue. Our bioprinted liver tissues are now thriving 90 days post-implantation in animal models, triple the duration of our earliest preclinical studies. Importantly, we’ve continued to observe strong synthetic function and meaningful improvement in liver health for treated animals. During fiscal 2018, we’ll continue to conduct pre-GLP studies in small animal disease models for our target indications and take preliminary steps to seek orphan designation in the U.S.”
The Company ended the fiscal first quarter with a cash and cash equivalents balance of $55.0 million.
During the fiscal first quarter, the Company generated net proceeds of approximately $3.0 million from the issuance of 1,139,489 shares of common stock in at-the-market (“ATM”) offerings at a weighted average price of $2.69 per share.
Working capital was $54.2 million to end the fiscal first quarter compared to $52.0 million in the prior-year quarter.
Fiscal-Year 2018 Outlook
The Company affirmed its full-year fiscal 2018 outlook for total revenue and negative Adjusted EBITDA. Organovo continues to expect total revenue of between $6.0 million and $8.5 million for fiscal-year 2018. Fiscal 2017 total revenue was $4.2 million. Negative Adjusted EBITDA of between $29.0 million and $31.0 million for fiscal-year 2018. Fiscal 2017 negative Adjusted EBITDA was $29.8 million.
“Our long-term plan remains founded on targeting attractive and growing markets with critical unmet needs, extending our first mover advantage, and capitalizing on our technology leadership to grow our product and service offerings.” Crouch concluded.