Organogenesis Holding (NASDAQ: ORGO) reported Q1 EPS of ($0.17), $0.06 worse than the analyst estimate of ($0.11). Revenue for the quarter came in at $57.1 million versus the consensus estimate of $52.6 million.

First Quarter 2019 Financial Summary:

• Net revenue of $57.1 million for the first quarter of 2019, up 60.8% compared to net revenue of $35.5 million for the first quarter of 2018. Net revenue comprised:
  • Net revenue from Advanced Wound Care products of $47.8 million, up 63.7% from the first quarter of 2018.
  • Net revenue from Surgical & Sports Medicine products of $9.3 million, up 47.2% from the first quarter of 2018.
• Net revenue from the sale of PuraPly products of $25.4 million for the first quarter of 2019, up 139.1% from the first quarter of 2018.
• Net revenue from the sale of non-PuraPly products of $31.7 million for the first quarter of 2019, up 27.3% from the first quarter of 2018.
• Net loss was $15.7 million, compared to a net loss of $22.5 million for the first quarter of 2018.
• Adjusted EBITDA loss of $9.4 million, compared to Adjusted EBITDA loss of $17.3 million for the first quarter of 2018.

First Quarter 2019 and Recent Highlights:

• On March 4, 2019, the Company presented a new case series published in Plastic and Reconstructive Surgery - Global Open suggesting that PuraPly® Antimicrobial (PuraPly AM) positively affects the course of healing in a variety of complex, chronic wounds that were previously unresponsive to treatment.
• On March 14, 2019, the Company entered into a new credit agreement with Silicon Valley Bank and MidCap Financial, providing an aggregate principal amount of $100 million consisting of a $60 million term loan and a $40 million revolving credit facility.
• On March 14, 2019, Jack Farr, MD, Medical Director of the Cartilage Research Center of Indiana presented clinical trial results demonstrating the effectiveness of ReNu® in treating symptoms associated with knee osteoarthritis at the American Academy of Orthopedic Surgeons Annual Meeting.
• On May 1, 2019, the Company announced that it received an Innovative Technology contract from Vizient, Inc. for its portfolio of Advanced Wound Care and Surgical & Sports Medicine products.

“2019 is off to a strong start,” said Gary S. Gillheeney, Sr., President and Chief Executive Officer of Organogenesis. “We delivered significant year-over-year revenue growth across both our Advanced Wound Care and Surgical & Sports Medicine portfolios driven by strong sales of our PuraPly and amnion products. With successful execution against our commercial strategy, we leveraged PuraPly’s pass through advantage to gain new PuraPly accounts, drive customer and clinician adoption of PuraPly deeper into existing accounts, and drive sales of our other products into accounts that had previously only purchased PuraPly. Strong execution from our sales team also drove penetration of our amnion products into existing and new accounts despite suspension of Affinity production in Q1 2019. Additionally, we grew our customer base across both our Advanced Wound Care and Surgical & Sports Medicine portfolios, and continued to build our commercial infrastructure by adding direct sales representatives and agencies. Based on our solid first quarter financial results and our expectation for continued strong commercial execution, we have increased our 2019 full year financial guidance.”

Mr. Gillheeney, Sr. continued: “We remain committed to delivering on our mission to provide integrated healing solutions that substantially improve medical outcomes and the lives of patients, while lowering the overall cost of care. To that end, we recently announced that we received an ‘Innovative Technology’ contract from Vizient, Inc., the largest health care performance improvement company in the country as part of Vizient’s move to value-based care.”

GUIDANCE:

Organogenesis Holding sees FY2019 revenue of $249-262 million, versus the consensus of $253.71 million.

• Net revenue of between $249 million and $262 million, representing growth of approximately 29% to 35% year-over-year, as compared to net revenue of $193.4 million for the twelve months ended December 31, 2018.
• The 2019 net revenue forecast assumes:
  • Net revenue from Advanced Wound Care products of between $219 million and $229 million, representing growth of approximately 33% to 39% year-over-year as compared to net revenue of $164.3 million for the twelve months ended December 31, 2018.
  • Net revenue from Surgical & Sports Medicine products of between $30 million and $33 million, representing growth of approximately 3% to 13% year-over-year as compared to net revenue of $29.1 million for the twelve months ended December 31, 2018.
  • The 2019 net revenue guidance range also assumes that net revenue from the sale of PuraPly products will represent between $96 million and $103 million of net revenue, representing growth of approximately 38% to 48% year-over-year, as compared to net revenue of $69.8 million for the twelve months ended December 31, 2018.

For earnings history and earnings-related data on Organogenesis Holding (ORGO) click here.