Organovo Reports 2011 Financial Results
SAN DIEGO, April 2, 2012 /PRNewswire/ -- Organovo Holdings, Inc. (OTCQB: ONVO) ("Organovo"), a three-dimensional biology company focused on delivering breakthrough 3D bioprinting technology, today reported the financial results for the year ended December 31, 2011.
Organovo is focused on breakthrough 3D bioprinting technology to create tissue on demand for research and medical applications. The company's NovoGen MMX Bioprinter(TM) is part of a 3D human tissue generation platform that works across a broad array of tissue and cell types to recapitulate in vivo biology. Organovo's bioprinting technology has immediate applications in disease research, drug discovery and development, and toxicology testing. In the future, the company believes that applications of this technology hold the promise to generate tissues for therapeutic uses.
For the year ended December 31, 2011, the Company reported a net loss $4,383,262 compared with a net loss of $1,338,694 for the year ended December 31, 2010. Included in the net loss for the years ended December 31, 2011 and 2010 were non-cash interest expenses of $2,066,889 and $160,873, respectively, derived from debt discounts of approximately $1.2 million, the deemed fair value of warrants issued in connection with an exchange agreement of approximately $528,000, and the amortization of deferred financing costs of approximately $119,500. 2011 total revenues of $968,513 increased $365,101, or 61%, over 2010 revenues of $603,412. This increase was due to a $613,088 increase in collaborative agreement revenues, and a $223,500 increase in product revenues, partially offset by a $471,487 reduction in grant revenues.
Operating expenses increased approximately $1,343,259, or 75%, in 2011 over 2010, from $1,781,630 in 2010 to $3,124,889 in 2011. Most significantly, the Company invested in building its executive, research, and development staff, as well as incurred costs associated with public company practices.
"Organovo continues to demonstrate an ability to further develop and strengthen its technology platform while making substantial strides in moving closer to achieving significant commercial potential," stated Keith Murphy, chief executive officer of Organovo. "With our recent financing, Organovo has the balance sheet strength required to deliver results to investors while advancing our core 3D bioprinting platform and the science required to expand applications of our technology."
Recent Corporate Highlights
In March 2012, we received a $290,053 grant from the National Institutes of Health to support the development of functional human liver tissue utilizing our bioprinting technology.
On March 16, 2012 we concluded our private placement offering, which raised approximately $15.2 million.
On February 28, 2012 Organovo was included in the 2012 TR50, MIT Technology Review's annual list of the world's most innovative technology companies. Technology Review's editors look for companies that over the last year have demonstrated original and valuable technology, are bringing that technology to market at a significant scale, and are clearly influencing their competitors. Spanning energy, computing, the Web, biomedicine, and materials, the companies on the list represent commercial innovations most likely to change lives around the world.
On February 8, 2012 we completed our reverse merger into a public entity and began trading OTCQB under the symbol "ONVO" on February 14, 2012.
About Organovo Holdings, Inc.
Organovo is a three-dimensional biology company focused on delivering breakthrough bioprinting technology and creating tissue on demand for research and medical applications. The company's NovoGen three-dimensional bioprinting technology is a platform that works across all tissue and cell types. Organovo's NovoGen MMX Bioprinter was selected as one of the "Best Inventions of 2010" by TIME Magazine. Organovo is helping pharmaceutical partners develop human biological disease models in three dimensions that enable therapeutic drug discovery and development. Organovo's bioprinting technology can also be developed to create surgical tissues as direct therapy. Organovo leads the way in solving complex medical research problems and building the future of medicine. For more information, please visit http://www.organovo.com.
Safe Harbor Statement
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company's ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company's products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and, the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies. These and other factors are identified and described in more detail in our filings with the SEC, including, our current reports on Form 8-K. We do not undertake to update these forward-looking statements made by us.
SOURCE Organovo Holdings, Inc.