Orgenesis (NASDAQ:ORGS) Inc, the global biotech company working to unlock the full potential of cell and gene therapies, has said it is entering the second phase of its POCare Platform rollout, and expects to benefit from recurring revenue streams from long-term contracts for the next two to three years.
This follows the building of a robust network of POCare centers across Europe, Asia and the Middle East and the implementation of its POCare supply strategy in the US, the company said.
"We are now entering the second phase of our rollout. Specifically, we are conducting work related to validation, process development, and supply for clinical trials of advanced therapies utilizing our POCare platform and OMPULs,” said Vered Caplan, CEO of Orgenesis (NASDAQ:ORGS), in a statement announcing first-quarter 2022 results..
READ: Orgenesis says consortium led by its MIDA Biotech subsidiary wins 4 million euro grant supporting cutting edge technology
“Moreover, if any one of these therapies is granted regulatory approval, we believe that the revenue potential is significant since our POCare strategy positions us as a long-term industrial partner,” she added.
Through partnerships with leading cell and gene therapy hospitals and centers of excellence, Orgenesis’ POCare centers have been able to serve as hubs for their respective territories and provide immediate revenue stream related to process development, technology transfer, setup, and validation of its POCare systems and Orgenesis Mobile Processing Units and Labs (OMPULs), the company noted.
Orgenesis is currently working to expand its capacity to supply products for over 10 distinct clinical programs, an approach Caplan said is highly scalable and “provides us diversification across multiple revenue-generating contracts”.
“As our customers' needs grow, our goal is to be well prepared to add new capacity utilizing our OMPUL-based approach, within 3-6 months versus the 18-24 months typical for building out additional cleanroom-based manufacturing capacity," it a\dded.
Orgenesis announced revenue of US$7.2 million for the three months ended March 31, 2022, compared to US$9.4 million a year ago. Net loss widened to US$4 million from US$219,000 in the year-ago period.
Caplan said the company is witnessing “dramatic capacity constraints” across the industry, but believes Orgenesis is uniquely positioned to address the challenges through a highly innovative decentralized model, which lowers costs, streamlines logistics, and expands capacity.
“We are overcoming the growing pains and challenges arising from our rapid transformation and believe that our model is essential and sustainable. This is best evidenced by our existing contract pipeline, which has total potential revenue in excess of $75 million for the next two years, as well as our capacity to continually expand our revenue-generating relationships with additional biotech companies, therapy developers and other providers such as hospitals and academic centers,” she added.
Contact the author at jon.hopkins@proactiveinvestors.com