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SAN DIEGO - Organovo Holdings, Inc. (NASDAQ:ONVO), a biotech firm specializing in inflammatory bowel disease treatments, announced the sale of its FXR Program to pharmaceutical giant Lilly (NYSE:LLY), a $742 billion market cap company with impressive 32% revenue growth over the last twelve months. According to InvestingPro analysis, Lilly stands as a prominent player in the Pharmaceuticals industry, currently trading above its Fair Value. The transaction includes upfront payments and potential future milestone payments. This deal, combined with recent warrant exercises and equity sales, has bolstered Organovo’s financial position, enabling the company to focus on new IBD opportunities.
The company has indicated that it expects to see a decrease in expenditures in the coming year. This is attributed to the reduction of costs associated with the development and clinical trials of FXR314, as well as expenses related to regulatory issues and other aspects of the FXR program. Organovo now plans to utilize its existing capital efficiently through the end of FY2026, with the potential for additional funds from FXR314 milestone payments to extend its financial runway or to increase spending. For a comprehensive analysis of both companies’ financial health and growth prospects, InvestingPro subscribers can access detailed research reports covering over 1,400 US stocks, including key metrics and expert insights.
Organovo’s innovative approach involves the use of 3D human cellular models for Crohn’s disease and ulcerative colitis to identify and evaluate therapeutic targets. The company believes that these models, which utilize primary cells from IBD patients, can more accurately predict clinical trial success. In 2024, Organovo showcased the efficacy of FXR314 in these 3D models, with data presented at various medical conferences demonstrating improvements in epithelial barrier function and fibrotic activity, as well as potential liver fibrosis treatment applications.
The company’s executive chairman, Keith Murphy, expressed confidence in the company’s strategy, stating, "As we demonstrated in 2024 with FXR, we can position an asset for a significant return to investors using our 3D human cellular models of IBD." Organovo expects to align its future business plan with the goal of capitalizing on similar opportunities.
Organovo plans to report its full-year financial results for the fiscal year ended March 31, 2025, between June 6 and June 10, 2025. The company continues to develop drugs that have shown effectiveness in 3D human tissues, with a proprietary technology platform designed to replicate human tissue characteristics and disease states.
The information in this article is based on a press release statement from Organovo Holdings, Inc.
In other recent news, Eli Lilly has been the focus of multiple analyst assessments and strategic developments. Bernstein maintained an Outperform rating for Eli Lilly with a price target of $1,100, highlighting the company’s strategic focus on its high-efficacy drug, Retatrutide. This decision gains significance as Novo Nordisk enters a licensing agreement for a similar drug, UBT251, potentially validating Eli Lilly’s approach. Jefferies also affirmed a Buy rating with a $1,020 price target, noting adjustments in weight loss expectations for Eli Lilly’s diabetes treatment, Orfo, based on trial data. Despite these revisions, Jefferies maintains positive expectations for Orfo’s performance in the ATTAIN-1 obesity trial.
UBS offered a mixed view, maintaining a Neutral rating with a $1,100 target, but expressing optimism about the upcoming ACHIEVE-1 trial results for Orfo. UBS estimates a 70% probability of success for this trial, which could position Eli Lilly as a leader in oral GLP-1 treatments. In a separate report, UBS reiterated a Buy rating, emphasizing strong demand for Eli Lilly’s Zepbound, which now accounts for 70% of new brand prescriptions compared to its competitor Wegovy. Additionally, Eli Lilly has introduced its diabetes and weight-loss drug Mounjaro in India, marking a significant step as the country faces rising obesity and diabetes rates. The pricing strategy for Mounjaro in India varies significantly from the U.S., reflecting differences in healthcare systems and economic conditions.
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