What happened
Shares of Organogenesis Holdings (ORGO 2.41%) were up more than 30% Thursday afternoon after the healthcare company released first-quarter earnings after market close on Wednesday. The stock is up a little more than 2% so far this year.
So what
Organogenesis makes products for the advanced wound care, surgical, and sports medicine markets, using regenerative tissue-based technologies that heal chronic and acute wounds. The company reported first-quarter revenue of $107.6 million, up 10% year over year. The company operates in two segments -- advanced wound care and surgical & sports medicine -- but the former was the star for the quarter, with a 12% increase in sales over the same period last year.
In the company's earnings call, Organogenesis president and CEO Gary Gillheeney said the biggest drivers of sales in the quarter came from its PuraPly antimicrobial wound mix and non-PuraPly products, such as NuShield, a dehydrated placental allograft wound covering.
The one down note in the report was that the company lost $3 million in the quarter, or $0.02 in earnings per share (EPS), compared to a net loss of $0.9 million, or an EPS loss of $0.01 in the first quarter of 2022.
The improved revenue numbers led Organogenesis to boost its annual guidance. It says it now expects revenue between $454 million and $466 million, a rise of 2% at the midpoint, year over year. It also said it expects net income to be between $3 million and $11 million, compared to net income of $15.5 million in 2022.
Now what
The next big step for the company will be whether it can get approval from the Food and Drug Administration (FDA) for ReNu, its knee osteoarthritis therapy. The product is an injectable solution of amniotic fluid cells and micronized amniotic membrane and contains cellular, growth factor, and extracellular matrix components. It is currently in phase 3 trials. The efficacy part of one trial is expected to finish in July, and the trial is expected to finish by the end of the year.
