Orgenesis Inc (NASDAQ:ORGS) (FRA:45O), the cell and gene therapies (CGTs) focused biotech, reported a four-fold increase in revenue in its first quarter to end-March, as the company continues its journey to build a long-term profitable business with its Point of Care (POCare) strategy.
Revenue in the three months came in at $9.4 million, up from $1.8 million in the first quarter of 2020.
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"This growth is a direct result of long-term contracts with our regional partners as they work to advance our therapeutic pipeline and scale production capabilities in their respective territories," said Vered Caplan, the firm's CEO.
"While we are in the early phases of our rollout, we achieved positive operating income for the quarter and are working aggressively to achieve our goal of building a sustainable long-term profitable business model, which we believe is achievable, given the scalability of our POCare strategy. We have also maintained a solid balance sheet with $41.8 million of cash as of March 31, 2021.”
The company identifies promising new therapies and leverages its POCare Platform to provide a pathway for them to reach and treat large numbers of patients at lowered costs. Put simply, it has three key elements to enable this - therapeutics, technology and network.
"Initially, we are focusing on autologous, cell-based immunotherapies, therapeutics for metabolic diseases, anti-viral diseases, and tissue regeneration. Towards this end, we have built a robust therapeutic pipeline, which includes more than 30 advanced cell and gene therapies. We continue to expand our pipeline through our growing partnership with researchers, commercial partners and hospitals," added Caplan.
The POCare Network continues to grow and now includes facilities in various countries across North America, Europe, Asia, and the Middle East. The latest reported revenues reflect just the first phase of the company's joint venture (JV) partnerships.
"At the same time, these partners are investing in personnel, regulatory expenses and infrastructure in their respective territories as a basis for our therapeutic pipeline advancement. As our JV partners progress towards commercial production of cell therapies, we expect to continue to generate revenue from supporting them, as well as from future royalties. We believe this is a highly scalable model, substantially de-risked through outside capital from our partners," said the company boss.
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