What happened?
Shares of regenerative medicine company Organogenesis Holdings (ORGO 1.96%) are skyrocketing on Thursday on high trading volume following two pieces of good news the drugmaker announced in the past 24 hours. Organogenesis Holdings' stock is up by 37.9% as of 12:34 p.m. EST after rising by as much as 43.2% today.
So what
On Wednesday evening Organogenesis Holdings announced preliminary results for its fourth quarter of fiscal 2020. The company said it expects its net revenue to come in between $104.6 million and $106 million, which would represent a 40%-to-42% year-over-year increase. On average, analysts predicted that the drugmaker's revenue for the fourth quarter would be $80.84 million. For the 12-month period that ended on Dec. 31, Organogenesis Holdings thinks it will record net revenue between $336.1 million and $337.5 million, an increase of roughly 29% compared to fiscal 2019.
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The company expects to report positive GAAP net income and positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for fiscal 2020, something it was unable to do in 2019. Further, on Thursday morning, Organogenesis Holdings announced that it has enrolled the first patient for its phase 3 clinical trial for ReNu for the management of symptoms associated with knee osteoarthritis (OA). OA affects more than 30 million Americans, and the healthcare company sees a major market opportunity ahead if ReNu goes on to earn regulatory approval.
Now what
With these positive developments under its belt, it's not surprising that investors are bidding up shares of Organogenesis Holdings today. And the company could continue to record nice gains once it releases its full fiscal fourth-quarter 2020 results.
