Orgenesis Inc . (NASDAQ:ORGS), a biotech company specializing in cell and gene therapies, has seen its stock price touch a 52-week low, dipping to $1.95. This price level reflects a significant downturn from the company's performance over the past year, with the stock experiencing a 1-year change of -65.09%. Investors are closely monitoring Orgenesis as it navigates through a challenging period in the biotech sector, marked by investor skepticism and a shift in market sentiment that has impacted the industry broadly. The company's journey to its 52-week low has been watched by market analysts who are considering the implications for long-term growth and the potential for recovery in the stock's value.
In other recent news, Orgenesis Inc., a biopharmaceutical company, received notification from Nasdaq about the delisting of its common stock due to non-compliance with listing requirements. Trading is expected to shift to the OTC Markets under the same ticker symbol. In an effort to regain compliance, Orgenesis initiated a 1-for-10 reverse stock split, reducing its issued and outstanding shares from approximately 47.7 million to 4.77 million.
The company also reported positive results from a study of its CD19 CAR-T therapy, ORG-101, for Acute Lymphoblastic Leukemia treatment, showing high response rates in both adults and children. Orgenesis secured an additional $750,000 in funding from investor Jacob Safier, raising the total loan amount to $1 million.
In a strategic move, Orgenesis formed a joint venture with Harley Street Healthcare Group (HSHG) to develop and commercialize wellness and longevity therapies worldwide, with HSHG committing to invest up to $10 million over the next three years. The company expanded its equity incentive plan by 9 million shares and elected five new directors to its board. Orgenesis also initiated a strategic collaboration with Germfree, aiming to make cell and gene therapy treatments more affordable and accessible. These are recent developments in the company's operations.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Orgenesis Inc.'s (ORGS) current financial situation, providing context to the stock's recent performance. The company's market capitalization stands at a modest $15.36 million, reflecting its small-cap status in the biotech sector.
InvestingPro Tips highlight that Orgenesis is operating with a significant debt burden and is quickly burning through cash, which may contribute to investor concerns about the company's financial stability. This aligns with the observed stock price decline, as the company's share price has fallen significantly over the last three months, with a 3-month price total return of -53.74%.
Despite these challenges, InvestingPro Tips also indicate that analysts anticipate sales growth in the current year, suggesting potential for improvement in the company's financial performance. However, it's important to note that Orgenesis was not profitable over the last twelve months, with a negative gross profit margin of -101.06% for the last twelve months as of Q2 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Orgenesis, providing a deeper understanding of the company's financial health and market position.
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