Organovo expects to maintain Nasdaq listing with stable stock price

SAN DIEGO - Organovo Holdings, Inc. (NASDAQ:ONVO), a biotechnology firm specializing in inflammatory bowel disease treatments, disclosed its preliminary unaudited cash position for the fiscal year ending March 31, 2025, and its net cash usage for the fourth quarter. The company, currently valued at $3.24 million in market capitalization, anticipates releasing comprehensive financial results in mid-June.

Organovo reported a preliminary cash and cash equivalents balance of approximately $11.3 million as of March 31, 2025. The company’s net cash utilization for the quarter spanning January 1 to March 31 is estimated to be between $2.0 and $2.2 million. InvestingPro analysis indicates the company is quickly burning through cash, with a concerning current ratio of 0.72, suggesting potential liquidity challenges ahead.

Additionally, Organovo addressed its compliance with Nasdaq Capital Market listing standards, confirming that its common stock has been trading above the $1.00 minimum bid price since March 21, 2025. The stock, currently trading near its 52-week low of $2.13, has experienced significant volatility with an 82% decline over the past year. According to InvestingPro, which offers 15+ additional insights about ONVO, the company’s financial health score remains weak at 0.98 out of 5.

Looking ahead, Organovo may receive a $5 million milestone payment within the next 12 months, related to the expected initiation of a Phase 2 clinical trial for an FXR agonist it recently sold. The company could potentially earn up to $50 million in aggregate milestone payments, which includes the anticipated $5 million from the trial commencement. These potential payments are particularly significant given the company’s modest trailing twelve-month revenue of $0.12 million. InvestingPro subscribers can access detailed financial analysis and future growth projections.

The company’s focus on developing drugs using its proprietary technology to create 3D human tissues that replicate human tissue characteristics and disease states positions it at the forefront of drug development innovation.

The preliminary financial data is subject to adjustment following customary annual audit procedures. Organovo’s forward-looking statements regarding its financial position, Nasdaq compliance, and potential milestone payments are not guarantees of future performance and are subject to various risks and uncertainties.

Organovo’s financial filings with the SEC, including its Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q, provide further details on risk factors that could influence the company’s ability to achieve these expectations.

This article is based on a press release statement from Organovo Holdings, Inc.

In other recent news, Organovo Holdings, Inc. has announced a 1-for-12 reverse stock split of its common stock. This corporate action, effective after market close, aims to comply with Nasdaq’s minimum bid price requirement, reducing the total number of issued shares significantly. Organovo’s stockholders approved this measure, and it will result in shareholders receiving cash payments instead of fractional shares. The company continues to trade under the same ticker symbol but with a new CUSIP number.

Additionally, Organovo has faced a potential Nasdaq delisting due to not meeting the minimum bid price requirement, with the company planning to present a compliance strategy, including the reverse stock split, to a Nasdaq Hearings Panel. In another development, Organovo has appointed Norman Staskey as Chief Financial Officer, bringing extensive experience in capital markets and mergers and acquisitions. This appointment coincides with clinical advancements, including promising Phase 2 results for their lead drug, FXR314, in treating Metabolic Dysfunction-Associated Steatohepatitis. These developments are part of Organovo’s ongoing efforts to strengthen its position in the biotechnology sector.

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