Organovo: 3 Things to Know

8
3 Things You Need to Know Organovo at Mid- Year

description

 

Transcript of Organovo: 3 Things to Know

Page 1: Organovo: 3 Things to Know

3 Things You Need to Know

Organovo at Mid-Year

Page 2: Organovo: 3 Things to Know

1) Extreme Volatility

Page 3: Organovo: 3 Things to Know

On one hand…In April, the

company said many short attacks were, “exceptionally—and likely intentionally—misleading.”

The company filed a libel lawsuit against one research firm putting out short attacks.

While the facts being used might be in question, there’s no doubt this is a speculative company.Essentially no product

revenue has ever been created.

Management has had a number of dilutive offerings.

Volatility and Short-Sellers

On the other…

Page 4: Organovo: 3 Things to Know

2) Reaching Landmarks Ahead of Schedule

Page 5: Organovo: 3 Things to Know

Organovo was expected to finish functional validation of its 3-D liver assays in March, and have them to Key Opinion Leaders (KOLs) by April.

The company reached both of those goals by late January.

Demand has been strong enough for these assays that the company is conducting liver toxicity tests for selected customers ahead of the product’s December 2014 launch.

Liver Assays’ Early Success

Page 6: Organovo: 3 Things to Know

3) What to Watch: Key Opinion Leaders

Page 7: Organovo: 3 Things to Know

Organovo has not provided a timeline for when KOL findings will be released.

However, since the liver assays will launch prior to 2015, KOL opinions will likely be released before that time.

Investors likely won’t get a chance to see revenue numbers before mid-2015 earnings are released, so these KOL opinions will have a major impact on the company’s stock…and the investment thesis for shareholders.

What Do KOLs Really Think?

Page 8: Organovo: 3 Things to Know

Investing in cutting-edge companies like Organovo is fun, but such speculative companies alone shouldn’t dominate your portfolio.

To get a list of solid, steady, dividend payers, check out our special free report:

Top Dividend Stocks for the Next Decade

Don’t Forget About Dividends