Organogenesis Holdings Reports Preliminary Financial Results for Third Quarter 2020

10/15/20

CANTON, Mass., Oct. 14, 2020 (GLOBE NEWSWIRE) -- Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine company focused on the development, manufacture, and commercialization of product solutions for the Advanced Wound Care and Surgical & Sports Medicine markets, today reported preliminary financial results for the three months ended September 30, 2020.

Third Quarter 2020 Preliminary Financial Results Summary:

  • Net revenue of between $99.0 million and $100.0 million for the three months ended September 30, 2020, up 54% to 56% compared to net revenue of $64.3 million for the three months ended September 30, 2019. Net revenue is based upon:
    • Net revenue from Advanced Wound Care products of between $88.5 million and $89.3 million, up 63% to 64% year-over-year.
    • Net revenue from Surgical & Sports Medicine products of between $10.5 million and $10.7 million, up 5% to 7% year-over-year.
  • Net revenue from the sale of PuraPly products of between $39.0 million and $40.0 million for the three months ended September 30, 2020, up 23% to 26% year-over-year.
  • The Company expects to report positive GAAP net income and positive Adjusted EBITDA for the three months ended September 30, 2020.

Updated Fiscal Year 2020 Financial Guidance:

For the twelve months ending December 31, 2020, the Company now expects:

  • Net revenue of between $311 million and $314 million, representing growth of approximately 19% to 20% year-over-year, as compared to net revenue of $261 million for the twelve months ended December 31, 2019.
  • The 2020 net revenue guidance range assumes:
    • Net revenue from Advanced Wound Care products of between $273 million and $275 million, representing growth of approximately 24% to 25% year-over-year as compared to net revenue of $221 million for the twelve months ended December 31, 2019.
    • Net revenue from Surgical & Sports Medicine products of between $38 million and $39 million, representing a decrease of approximately 3% to 6% year-over-year as compared to net revenue of $40 million for the twelve months ended December 31, 2019.
    • Net revenue from the sale of PuraPly products of between $119 million and $121 million, representing a decrease of approximately 5% to 6% year-over-year, as compared to net revenue of $127 million for the twelve months ended December 31, 2019.
  • The Company expects to report positive GAAP net income and positive Adjusted EBITDA for the three months ended December 31, 2020.
  • The Company expects to report positive GAAP net income and positive Adjusted EBITDA for the full fiscal year 2020 period.

Acquisition of CPN Biosciences:

On September 17, 2020, Organogenesis Holdings Inc. acquired CPN Biosciences.

“This strategic acquisition significantly enhances our ability to drive growth in the office channel,” said Gary S. Gillheeney, Sr., President and Chief Executive Officer of Organogenesis. “CPN’s physician office management solution and complementary first-in-line advanced wound care products further broaden Organogenesis’ physician offering and accelerates our office strategy.”

The acquisition of CPN Biosciences did not materially impact revenue for the three months ended September 30, 2020.

About Organogenesis Holdings Inc.
Organogenesis Holdings Inc. is a leading regenerative medicine company offering a portfolio of bioactive and acellular biomaterials products in advanced wound care and surgical biologics, including orthopedics and spine. Organogenesis’s comprehensive portfolio is designed to treat a variety of patients with repair and regenerative needs. For more information, visit www.organogenesis.com.