Organogenesis has been on a roll with few catalysts supporting the stock.
Organogenesis Holdings (ORGO) is trading at its 52-week high with closing the session at $11.83, up by 2.42%on Feb. 3. Investors have been quite bullish on ORGO in recent times, probably due to promising preliminary Q4 2020 outcomes.
The company has been also progressing on its cryopreserved amniotic suspension allograft (ASA) that is under Phase 3 clinical trials, studied for patients with knee osteoarthritis (OA) symptoms.
The ORGO’s earnings outlook has improved overtime. While the stocks have also been performing with a strong trend. With that, the analysts have kept their eyes on the stock.
What’s Next?
Organogenesis (ORGO) is one of the leading regenerative medicine firms that focus on the Advanced Wound Care and Surgical & Sports Medicine markets. The company develops and manufactures products for the patients.
Recently, the company reported the preliminary Q4 and full-year 2020 outcomes that were quite promising. The net revenue for Q4 is expected to be in the range of $104.6 million to $106 million, an increase of 40% to 42% Year-over-Year. While the full-year 2020 revenue is projected between $336.1 million and $337.5 million, up by almost 29% YoY. The net income and EBITDA are also expected to be positive for both the quarter and full-year.
So, the positive results from last year seem to be the major catalyst for ORGO stock.
Furthermore, the company is continuing with the pivotal Phase 3 clinical trials of ReNu®, it’s ASA that is being studied for tackling the symptoms of knee osteoarthritis patients. Organogenesis just announced that it has enrolled the first patient for the Phase 3 study.
The first appointment for the trails came when the company obtained the FDA’s RMAT designation, successfully proving the clinical evidence for ReNu. The company intends to work along with the FDA until the final approval for ReNu—before it comes to the market.
Almost 30 million people in the US are affected by Knee osteoarthritis each year and spend $185 billion annually. It is estimated that more than 14 million Americans are older than 25 years, while around 8 million are under 65 years of age.
Moreover, the number of knee surgeries is growing each year. If Organogenesis successfully achieves the end-point results in the final phase, this would bring a big change for the knee joint patients. And, ultimately drive the company’s revenue in years to come.
With an increase in the bullish sentiment for the company, Zacks has raised its consensus estimate to 25% in the past 30 days. For the current quarter, the company is anticipated to report $0.06 per share, which would be a whopping 250% change from a year ago. Whereas, the full-year earnings estimate is $0.05 per share, up by approximately 112% YoY.
Conclusion
Overall, the sentiment is bullish for Organogenesis (ORGO). Also, ORGO stock has been on a strong upward trend. The Zack consensus revision for 2021 appears promising—as there has been no negative revision over the past months.
