Organovo Soars On Strong Customer Response For Its Second Tissue Service

Organovo Soars On Strong Customer Response For Its Second Tissue Service

By: Dylan Sikes - AllPennyStocks.com News

Tuesday, November 1, 2016

The biotechnology sector has seen a sharp pullback over the last month as uncertainties due to the upcoming U.S. election has weighed down investors’ sentiment. The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) is down more than 11% in the last month alone. The sector had begun the year on a disappointing note but it did bounce back in the second quarter and continued to gain momentum in the third quarter as well. However, IBB failed to break through the $300 mark. Year-to-date, the ETF remains down nearly 24%, indicating that investors’ sentiment on the sector remains negative. This is in sharp contrast to how the biotech sector performed between 2010 and 2015, when valuations touched record high levels. It will be interesting to see if the sector does bounce back after the U.S. elections though.


One of the major movers in the biotech sector in trading today is Organovo Holdings Inc. (NASDAQ:ONVO). Based in San Diego, California, Organovo Holdings is an early-stage commercial-stage company focused on developing and commercializing functional human tissues. The company focuses on the generation of three-dimensional (3D) human tissues, by utilizing its platform technology to create human tissue constructs in 3D.

ONVO shares are soaring in trading today after the company announced that it has received a strong customer response for its second tissue service, the ExViveTM Human Kidney Tissue. This kidney proximal tubule model was launched in September, and is a natural expansion of the Company’s preclinical product and service portfolio. Customers use Organovo’s 3D bioprinted kidney tissue to study the effects of drug exposure through toxicology panels and transporter studies. The Company already has multiple commercial orders from several customers, including with two, global, top 25 pharmaceutical companies.

Dr. Caroline Lee, Senior Director, Ardea Biosciences Inc., said that the ExVive Human Kidney Tissue provides an ideal means to study the impact of renal transporters on the disposition of drugs because it closely resembles native human kidney proximal tubule, with its polarized renal epithelial cells and tubulointerstitial interface and in particular its native expression level of transporters enabling formation of the transport network. Adrea Biosciences is a wholly-owned subsidiary of AstraZeneca Plc.

ONVO shares have risen sharply in trading today. At last check, the stock was trading 8.48% higher at $2.70 on volume of 1.80 million, which is above the daily average volume of 1.14 million. With that said, shares have been sliding substantially prior to today and are down 45.9% from their recent highs in mid-August as sector woes have exacerbated the decline for ONVO.

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