Orgenesis Provides Year End Business Update

In This Article:

Orgenesis Inc.
Orgenesis Inc.

Major transformation underway commencing with recent acquisition
reasserting full ownership and control over Octomera

Secured a $2.3 million investment from a group including sophisticated healthcare professionals at $1.03 per share and accompanying warrants, a more than 50% premium to prior-day closing price

Entered into asset purchase and strategic collaboration agreement which will provide Octomera with over $8 million of initial collaboration payments

GERMANTOWN, Md., April 15, 2024 (GLOBE NEWSWIRE) --  Orgenesis Inc. (NASDAQ: ORGS) (“Orgenesis” or the “Company”), a global biotech company working to unlock the full potential of cell and gene therapies (CGT) in order to improve access and outcomes in healthcare, today provided a business update for the year ended December 31, 2023.

“Orgenesis is a company that has set as its goal to make cell and gene therapies available and affordable. The cell and gene industry has continued to grow year over year driven by the curative potential of these groundbreaking therapies, and yet, the challenges of reducing costs of products and the ability to enable quick expansion of production capacity have not been overcome,” commented Vered Caplan, CEO of Orgenesis. “The Company has pioneered decentralized production for these personalized therapies by setting up what we believe is the only existing global decentralized production platform with a capability to accommodate a wide-range of therapies. We continue to invest in expanding the platform and validating our decentralized approach so that it can serve as a viable and cost-effective solution to the industry.”

“Unfortunately, the last year was an extremely difficult one for the industry. Although there has been widespread acceptance of the field with multiple approvals of new products, the lack of funding has hit early-stage development companies the hardest. A majority of Octomera’s customers fall into the early-stage category. Many of them are innovative companies that are developing potentially lifesaving therapies that have based their entire development on a decentralized strategy and invested millions of dollars by means of service payments to Octomera.”

“Even as we continue to engage these customers, we are taking a conservative accounting approach as to their future outlook. We remain hopeful that, as the funding environment improves, they will secure additional funding and thank them for their bedrock support in turning decentralized supply into a reality for the industry. Moreover, with new regulatory initiatives underway that align with our decentralized approach, we believe both the public and private sectors are now acutely aware of the need to address industry-wide capacity and cost constraints. Stakeholders are realizing that decentralized production is an undeniable reality, making it not only a viable option, but a critical pathway for the long-term success of this industry.”