Organogenesis
(NSDQ:ORGO) beat The Street on sales for the second quarter of 2019 and boosted its outlook for the rest of the year amid continued strong sales growth in its wound-care business.
The Canton, Mass.–based regenerative medicine company reported a loss of $9.65 million, or -11¢ per share, on sales of $64.95 million for the three months ended June 30, 2019, for a bottom-line gain of 51% on sales growth of 49% compared with Q2 2018.
Analysts had predicted the company would lose 11 cents per share off sales of $59.1 million during the quarter. The company did not provide adjusted earnings per share.
Wound-care sales in the quarter jumped 50% or $18.3 million over Q2 2018’s showing, due primarily to the hiring of more sales reps, PuraPly regaining pass-through reimbursement status from the Centers for Medicare & Medicaid Services through October 1, 2020, and the continued growth in adoption of the company’s amniotic products, Organogenesis said. PuraPly sales soared by 133% to $29.7 million in Q2 2019, representing about 46% of overall sales for the quarter, the company said.
“We delivered another strong quarter of significant year-over-year revenue growth across both our Advanced Wound Care and Surgical and Sports Medicine portfolios,” said Gary S. Gillheeney, Sr., Organogenesis president & CEO in a news release. “With continued successful execution against our commercial strategy, we grew our customer base and drove customer and clinician adoption deeper into existing accounts. We are pleased that our second-quarter results reflected strong year-over-year growth across all products other than Affinity and also benefited from an increase in our amniotic capacity and an improvement in our ability to meet customer demand. Based on our strong commercial performance and our expectation that our amniotic capacity will increase again in the fourth quarter, we are updating our fiscal 2019 revenue guidance reflecting growth of 29% to 35% year-over-year. We are committed to delivering on our mission to provide integrated healing solutions that substantially improve medical outcomes while lowering the overall cost of care. We remain focused on commercial execution, operational progress – including the continued development of our new product pipeline – and improving our profitability profile.”
Organogenesis updated its 2019 sales expectations for the year to $250 million to $262 million, up from $249 million to $262 million.
ORGO shares were down slightly to $4.49 apiece during mid-afternoon trading today.
