07-24-2014: Johnson & Johnson partnered with Organovo Holdings, Inc. to develop a tissue 3D printing project in a drug discovery setting
It was another announcement promising a revolution in medicine that has yet to arrive...
On July 24, 2014, Organovo – a global pioneer in bioprinting, announced a collaboration with Janssen Research and Development - the Johnson & Johnson company, in the area of 3D printing living tissue for drug research. A year earlier, the company gained worldwide fame by showcasing its advances in bioprinting living liver tissues. Since then, bioprinting officially entered the mainstream, and Organovo became one of the most exciting companies in the 3D printing industry. Today, it doesn't look as promising...
In 2014, Organovo had 3D printed everything from blood vessels to thyroid tissue, with long-term plans to print entire organs. In late 2014, it started offering liver tissue to drug companies for testing the toxicity of drugs — this was the company’s first commercial product.
Janssen was more interested in using 3D printed tissue to discover drugs. By exposing many different 3D printed cells to many different early-stage drugs, it could possibly determine which are the most effective. Janssen and Organovo did not disclose further details about the agreement.
Organovo was founded in 2007. Over the next 10 years, it successfully built its position – in addition to the described cooperation with J&J, in 2015 it entered into a similar partnership with L'Oreal. The company has been listed on the stock exchange since 2012. In 2013, its market valuation reached $700 million.
That's the good news. Now for the bad...
For several years, the company has continued its research but is still awaiting commercialization. This results in minimal revenue, while high operating costs generate significant losses. The stock price has significantly decreased. At the beginning of 2024, it was trading at $1.11 per share, but it dropped to approximately $0.59 by July 2024.
Analysts and market sentiment have been generally negative due to the continuous financial losses and low revenue. The company’s stock has seen a significant decrease in value, reflecting investor concerns. Auditors have raised concerns about Organovo's ability to continue, given its ongoing financial challenges and negative cash flows.
One significant financial "success" the company has had in recent years was the victorious dispute with BICO (Cellink) over patent infringement. Organovo obtained an extra $1.5 million as well as additional royalties based on the net sales of licensed products made by Cellink.