Organovo Holdings Inc (NYSEMKT:ONVO) was a notable mover during Monday’s trading session. The stock was lower by close to 0.5% on the back of relatively high volumes. The stock has been trading in broad trading range over the last couple of weeks taking support at its 50 day moving average. The indicator for relative strength has given a fresh sell signal, which is cause for concern for traders. The MACD oscillator continues to trend sideways with a bullish bias. The stock currently trades below its 200-day moving average. Investors believe the stock could head to levels of $2.84 in the near term.
Organovo Holdings Inc (NYSEMKT:ONVO) has announced results for the recently concluded 2QFY2016. As per the reports, the net loss for the quarter was $11.3 million or $0.12 per share against the net loss of $8.9 million or $0.11 per share during the 2QFY2015.
Insights of Financial Result
Total revenue for the quarter was $0.3 million, which comprised of collaborations and grants revenue worth $0.1 million and products and services revenue worth $0.2 million. If taken into consideration the yearly growth, one can notice that Organovo rose at a whopping 502% rate.
Product and services revenue comprise of revenue from exVive3DTM Human Liver Tissue research service and other related product. It was zero during the same period last year. The primary reason behind this can be the lack of awareness and marketing of the exVive3DTM Human Liver Tissue, which was launched for the first time in November 2014.
Reports claim that the company has also achieved the next milestone for kidney program before the given deadline. Functional validation of the kidney tissue was first completed in October 2015. It’s to be achieved in December 2015.
The senior management team of Organovo is delighted to announce this update and hopes that it will continue inching higher and higher with the passage of time. According to Keith Murphy, Chief Executive Officer, the financial results reported by the company show its continuous growth. They are well in line and are expected to improve in the upcoming quarters.
He further added that Organovo Holdings Inc (NYSEMKT:ONVO) had taken a number of strategic moves to keep its sales, R&D, and marketing functions in alignment with its commercial decisions. The efforts had paid off well up till now and were expected to provide the same results in the coming months as well. He also noted that Organovo would take many innovative steps in the upcoming quarters to improve its sales and overall operational efficiency, details of which would be shared at a later date.