GERMANTOWN, Md., May 24, 2022 (GLOBE NEWSWIRE) -- Orgenesis Inc. (NASDAQ: ORGS) (“Orgenesis” or the “Company”), a global biotech company working to unlock the full potential of cell and gene therapies, today provided a business update for first quarter ended March 31, 2022.
Recent highlights:
- Expanded POCare with Johns Hopkins University through creation of the Maryland Center for Cell Therapy Manufacturing
- Reached milestone in collaboration with Hospital Infantil Universitario Niño Jesús in Madrid
- Awarded €4M European Innovation Council Pathfinder Grant
Vered Caplan, CEO of Orgenesis, said, “We are completing the first phase of the rollout of our POCare Platform, as we have now built a robust network of POCare centers across Europe, Asia and the Middle East, and are focusing on implementation of our POCare supply strategy in the US. Each of our POCare centers serve as hubs for their respective territories. We have cost effectively executed this model through partnerships with leading hospitals and centers of excellence in the field of cell and gene therapies, which provide us an immediate revenue stream related to process development, technology transfer, setup, and validation of both our POCare systems and Orgenesis Mobile Processing Units and Labs (OMPULs). In turn, we have built out significant capacity to support our anticipated growth.”
“We are now entering the second phase of our rollout. Specifically, we are conducting work related to validation, process development, and supply for clinical trials of advanced therapies utilizing our POCare platform and OMPULs. As these activities ramp up, we expect to benefit from recurring revenue streams, based on long term contracts for the next two to three years. Moreover, if any one of these therapies is granted regulatory approval, we believe that the revenue potential is significant since our POCare strategy positions us as a long term industrial partner. We are currently working to expand our capacity to supply products for over 10 distinct clinical programs. We believe our approach is highly scalable and provides us diversification across multiple revenue generating contracts. As our customers’ needs grow, our goal is to be well prepared to add new capacity utilizing our OMPUL-based approach, within 3-6 months versus the 18-24 months typical for building out additional cleanroom-based manufacturing capacity.”
“Overall, we are witnessing dramatic capacity constraints across the industry. We believe our model is uniquely positioned to address the challenges of current centralized production through a highly innovative decentralized model, which lowers costs, streamlines logistics, and expands capacity. We are overcoming the growing pains and challenges arising from our rapid transformation and believe that our model is essential and sustainable. This is best evidenced by our existing contract pipeline—which has total potential revenue in excess of $75 million for the next two years, as well as our capacity to continually expand our revenue generating relationships with additional biotech companies, therapy developers and other providers such as hospitals and academic centers.”
The complete financial results for the first quarter of 2022 are available on the Company’s website in its Form 10-Q, which has been filed with the Securities and Exchange Commission.
About Orgenesis
Orgenesis is a global biotech company working to unlock the full potential of cell and gene therapies (CGTs) in an affordable and accessible format at the point of care. The Orgenesis POCare Platform is comprised of three enabling components: a pipeline of licensed POCare Therapeutics that are processed and produced in closed, automated POCare Technology systems across a collaborative POCare Network. Orgenesis identifies promising new therapies and leverages its POCare Platform to provide a rapid, globally harmonized pathway for these therapies to reach and treat large numbers of patients at lowered costs through efficient, scalable, and decentralized production. The POCare Network brings together patients, doctors, industry partners, research institutes and hospitals worldwide to achieve harmonized, regulated clinical development and production of the therapies. www.orgenesis.com.
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These forward-looking statements involve substantial uncertainties and risks and are based upon our current expectations, estimates and projections and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including, but not limited to, our reliance on, and our ability to grow, our point-of-care cell therapy platform and OMPUL business, our ability to achieve and maintain overall profitability, our ability to manage our research and development programs that are based on novel technologies, our ability to control key elements relating to the development and commercialization of therapeutic product candidates with third parties, the timing of completion of clinical trials and studies, the availability of additional data, outcomes of clinical trials of our product candidates, the potential uses and benefits of our product candidates, our ability to manage potential disruptions as a result of the COVID-19 pandemic, the sufficiency of working capital to realize our business plans and our ability to raise additional capital, the development of our POCare strategy, our trans differentiation technology as therapeutic treatment for diabetes, the technology behind our in-licensed ATMPs not functioning as expected, our ability to further our CGT development projects, either directly or through our JV partner agreements, and to fulfill our obligations under such agreements, our license agreements with other institutions, our ability to retain key employees, our competitors developing better or cheaper alternatives to our products, risks relating to legal proceedings against us and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.
IR contact for Orgenesis:
Crescendo Communications, LLC
Tel: 212-671-1021
Orgs@crescendo-ir.com
Communications contact for Orgenesis
Image Box Communications
Neil Hunter / Michelle Boxall
Tel +44 (0)20 8943 4685
neil@ibcomms.agency / michelle@ibcomms.agency
ORGENESIS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars, in thousands, except share and per share amounts)
(Unaudited)
| As of | |||||||
| March 31, | | December 31, | | ||||
| Assets | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 1,123 | | $ | 5,473 | | |
| Restricted cash | 490 | | 501 | | |||
| Accounts receivable, net | 17,075 | | 15,245 | | |||
| Prepaid expenses and other receivables | 1,438 | | 1,188 | | |||
| Convertible Loan receivables-related parties | 2,969 | | 3,064 | | |||
| Loans receivable | 802 | | - | | |||
| Grants receivable | - | | 169 | | |||
| Inventory | 113 | | 118 | | |||
| Total current assets | 24,010 | | 25,758 | | |||
| NON-CURRENT ASSETS: | |||||||
| Deposits | $ | 358 | | $ | 363 | | |
| Investments in and loans to associated entities | 1,574 | | 584 | | |||
| Loans receivable | - | | 821 | | |||
| Property, plant and equipment, net | 11,104 | | 10,271 | | |||
| Intangible assets, net | 11,539 | | 11,821 | | |||
| Operating lease right-of-use assets | 886 | | 1,015 | | |||
| Goodwill | 8,329 | | 8,403 | | |||
| Other assets | 738 | | 805 | | |||
| Total non-current assets | 34,528 | | 34,083 | | |||
| TOTAL ASSETS | $ | 58,538 | | $ | 59,841 | | |
ORGENESIS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Cont’d)
(U.S. Dollars, in thousands, except share and per share amounts)
(Unaudited)
| As of | |||||||
| March 31, | December 31, | ||||||
| Liabilities and Equity | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 6,933 | $ | 5,238 | |||
| Accrued expenses and other payables | 1,076 | 485 | |||||
| Income tax payable | 91 | 54 | |||||
| Employees and related payables | 2,041 | 1,907 | |||||
| Advance payments on account of grant | 1,216 | 1,238 | |||||
| Contract liabilities | 70 | 59 | |||||
| Current maturities of finance leases | 18 | 18 | |||||
| Current maturities of operating leases | 451 | 481 | |||||
| Current maturities of convertible loans | 3,357 | 5,885 | |||||
| Total current liabilities | 15,253 | 15,365 | |||||
| LONG-TERM LIABILITIES: | |||||||
| Non-current operating leases | $ | 461 | $ | 561 | |||
| Convertible loans | 7,544 | 4,854 | |||||
| Retirement benefits obligation | 105 | 101 | |||||
| Non-current finance leases | 36 | 41 | |||||
| Other long-term liabilities | 282 | 288 | |||||
| Total long-term liabilities | 8,428 | 5,845 | |||||
| TOTAL LIABILITIES | 23,681 | 21,210 | |||||
| EQUITY: | 3 | 3 | |||||
| Additional paid-in capital | 146,290 | 145,916 | |||||
| Accumulated other comprehensive income | 56 | 207 | |||||
| Treasury stock, 286,567 shares as of March 31, 2022 and December 31, 2021 | (1,266 | ) | (1,266 | ) | |||
| Accumulated deficit | (110,381 | ) | (106,372 | ) | |||
| Equity attributable to Orgenesis Inc. | 34,702 | 38,488 | |||||
| Non-controlling interest | 155 | 143 | |||||
| Total equity | 34,857 | 38,631 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 58,538 | $ | 59,841 | |||
ORGENESIS INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(U.S. Dollars in Thousands, Except Share and Loss Per Share Amounts)
(Unaudited)
| Three Months Ended | |||||||
| March 31, | March 31, | ||||||
| 2022 | 2021 | ||||||
| POC development services | $ | 5,689 | $ | 7,987 | |||
| POC development services from related party | 635 | 1,157 | |||||
| Cell process development services and hospital services | 888 | 245 | |||||
| Total revenues | 7,212 | 9,389 | |||||
| Cost of revenues cell process development services and hospital services | 714 | 770 | |||||
| Cost of development services and research and development expenses | 6,651 | 5,357 | |||||
| Amortization of intangible assets | 232 | 238 | |||||
| Selling, general and administrative expenses | 2,851 | 2,968 | |||||
| Operating loss (income) | 3,236 | (56 | ) | ||||
| Other income, net | - | (25 | ) | ||||
| Financial expenses, net | 213 | 233 | |||||
| Share in net loss of associated companies | 547 | 15 | |||||
| Loss before income taxes | 3,996 | 167 | |||||
| Tax (income) expense | 1 | (2 | ) | ||||
| Net loss | 3,997 | 165 | |||||
| Net loss attributable to non-controlling interests | 12 | 54 | |||||
| Net loss attributable to Orgenesis Inc. | 4,009 | 219 | |||||
| Loss per share: | |||||||
| Basic and diluted | $ | 0.16 | $ | 0.01 | |||
| Weighted average number of shares used in computation of Basic and Diluted loss per share: | |||||||
| Basic and diluted | 24,600,954 | 24,192,951 | |||||
| Comprehensive loss: | |||||||
| Net loss | $ | 3,997 | $ | 165 | |||
| Other Comprehensive loss – Translation adjustment | 151 | 277 | |||||
| Comprehensive loss | 4,148 | 442 | |||||
| Comprehensive loss attributed to non-controlling interests | 12 | 54 | |||||
| Comprehensive loss attributed to Orgenesis Inc. | $ | 4,160 | $ | 496 | |||
