Orgenesis Inc.

For the 3 months ended June 30, 2023, revenue was $7 million versus $7.2 million in the prior-year quarter. Cost of revenues was $3.2 million versus $1.1 million, SG&A was $3.3 million versus $2.8 million, operating loss was $3.3 million versus $4.7 million, and net loss was $3.7 million versus $5.5 million. Comprehensive loss attributed to Orgenesis was $3.8 million, compared with $5.7 million last year, and quarter-end cash, cash equivalents and restricted cash were about $1.2 million, excluding funding received after quarter-end from Metalmark. Management did not give formal next-quarter or full-year financial guidance on the call.

Vered Caplan framed Orgenesis as a leader in decentralized point-of-care production for cell and gene therapies, arguing the centralized CDMO model is too costly, slow, and capacity constrained. She said the company is expanding its U.S. rollout, deploying OMPULs, and using partnerships like UC Davis and outside capital to scale. Her tone was optimistic and mission-driven, with repeated emphasis on validation, long-term value creation, and a view that the company is still early in monetizing the opportunity.

Neil Reithinger focused on the quarter’s financial bridge: revenue of $7 million, a 204% increase in cost of revenues to $3.2 million, SG&A up 19% to $3.3 million, and lower operating and net losses year over year. He attributed the higher cost base mainly to the Octomera segment, including salaries, professional fees, raw materials, and depreciation tied to higher activity. He also highlighted liquidity of about $1.2 million at quarter-end, while noting that the recent Metalmark funding into Octomera was received after the quarter and that Octomera’s assets and liabilities were no longer on Orgenesis’ balance sheet after deconsolidation.

Analysts asked about the UC agreement, specifically how many sites were involved and how expandable the model is; Caplan clarified that there are other sites outside California, but the immediate focus in California is one site used to validate the model before broader expansion. She explained that one hub can support multiple hospitals and multiple OMPULs, so sites are not one-to-one with hospitals. On Koligo, she said international expansion is still a possibility, but it would need funding support; Kyslecel is already included in a Belgium grant. On the revenue mix, she said the swing between process development services and point-of-care services is timing-related and reflects onboarding of new customers rather than a structural shift.