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Orgenesis sees 2Q 2021 revenue jump by 500% year-over-year

Published: 09:50 05 Aug 2021 EDT

Orgenesis - Orgenesis says 2Q 2021 revenue jumped 500% year-over-year
Most recently, Orgenesis entered into an agreement with a local partner to expand the POCare network in Australia

Orgenesis (NASDAQ:ORGS) Inc said its 2Q 2021 revenues rose from $1.75 million to $10.5 million compared to the same period in 2020. 

The international biotech company, which is focused on unlocking the full potential of cell and gene therapies (CGTs) in an affordable and accessible format, credited the OrGenesis (TSX:GDC) Point of Care (POCare) Platform as a key factor to the profit boost. 

The POCare system consists of a pipeline of licensed POCare Therapeutics that are processed and produced in closed, automated POCare Technology systems across a collaborative POCare Network. 

READ: Orgenesis says Ranpirnase advancing towards multiple indications after FDA consultation and presentation of positive results

Offering commentary on the company’s 2Q performance in a statement, Vered Caplan, CEO of Orgenesis, said: “I am pleased to report that our POCare revenues for the second quarter of 2021 increased more than six-fold to $10.5 million compared to $1.75 million for the second quarter of last year, which reflects the sustainability of our POCare strategy.

"The increase in our revenue is attributable to technology transfer, setup, scale-up and validation of our therapeutic pipeline and point-of-care systems for clinical use through long-term contracts with our regional partners.” 

Caplan added: “We are rapidly gaining traction with our POCare Platform and continue to add new POCare therapies, technologies, and a growing global network through collaborations with research centers, hospitals and biotech companies.”

She also noted that the sector has experienced “explosive growth” in the areas of cell and gene therapy, which is likely to result in major bottlenecks and capacity shortages in the industry. These deficits will be reflected in the exorbitant costs and manufacturing delays for these therapies, according to Caplan. 

“We believe that the current supply models are not optimal for this exciting stage of biotech innovation, both for smaller developers unable to secure capacity and larger developers investing heavily for capacity that may take years before coming online,” Caplan said.

“We believe our strategy of decentralized supply of cell and gene therapies based on standardization of the manufacturing environment could be a solution for this industry, by potentially enabling lower costs, accelerating development and, once validated, could directly address the industry-wide capacity constraints,” she added. 

Orgenesis is continuing to grow its POCare Network via new joint ventures and partnerships with leading hospitals and research institutes in various countries across North America, Europe, Asia, and the Middle East. 

Most recently, the biotech firm entered into an agreement with a local partner to expand the POCare network in Australia. 

In the US, an expansion to the collaboration the company has with Johns Hopkins University is in the works which will include the establishment of a point of care development center. A similar initiative is also underway with UC Davis in California. 

“At the same time, we are incorporating into our clinical activity a number of highly advanced, automated POCare technologies. As an example, we have commenced enrollment for a Phase 2 clinical trial using the Tissue Genesis Icellator at the Hospital for Special Surgery (HSS) in New York. Orgenesis acquired the Tissue Genesis’ Icellator technology in October 2020,” Caplan noted. 

“Designed to be used at the point-of-care, the Tissue Genesis Icellator is a practical and cost-effective solution for clinical applications of stromal and vascular cells (SVF) from autologous adipose (fat) tissue. Data from this study may support expanded development of the Icellator in other orthopedic applications," she said. 

Contact the writer at georgia@proactiveinvestors.com

Follow her on Twitter @MissInformd

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