Organovo Holdings Inc (NASDAQ:ONVO) Public Offering Triggers Selloff


The announcement Wednesday by Organovo Holdings Inc (NASDAQ:ONVO) that it was launching a public offering of its common stock, and the pricing Thursday of 9 million shares at $2.75 each, pulled the carpet out from under investors’ feet.

The Organovo stock crashed 15.19% to close at $2.96 yesterday, with 9.87 million shares changing hands.

Organovo Organovo designs and creates functional, three-dimensional human tissues for use in medical research and therapeutic applications.  The Company develops 3D human tissue models through internal development and in collaboration with pharmaceutical, academic and other partners.  Organovo’s 3D human tissues have the potential to accelerate the drug discovery process, enabling treatments to be developed faster and at lower cost.

Organovo Holdings Inc (NASDAQ:ONVO) share issue proceeds

The pricing of the public offering at $2.75 was 21% below the previous day’s close of $3.49, and it is no surprise that the stock came out of the gates with a massive downside gap.

Existing investors paid the price for the equity dilution.

Organovo will garner about $25 million from the offering, which is expected to close on October 25. The funds will be used for general corporate purposes, R&D and product development, administrative expenses and working capital and capital expenditures.

Organovo Holdings Inc (NASDAQ:ONVO) 3D bioprinted human liver tissue

Earlier this month, Organovo announced its plan to develop 3D bioprinted human liver tissue for direct transplantation to patients.

An increasing number of people across the globe are in the queue for organ or tissue transplant, due to the large gap in demand for organs transplant and donors according to P&S Market Research.

This has created huge potential in the 3D printing industry for developing live tissues and organs. Accordingly, the global 3D Bioprinting market is expected to grow at 35.9% CAGR during 2016 – 2022, say the researchers.

According to Organovo, approximately 17,000 patients are on the U.S. liver transplant waiting list, and only 6,000 liver transplants are performed each year.

“We’re excited to introduce an implantable bioprinted liver tissue as the first preclinical candidate in our therapeutic tissue portfolio, and see the early results as extremely promising,” said Keith Murphy, CEO, Organovo.  “The scientific and commercial progress we have already made with ExVive Human Liver Tissue in drug toxicity testing has given us a firm foundation upon which to build a larger tissue for transplant.”


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