Organovo Holdings is hitting the hard-reset button after failing to generate decisive scientific data to support prolonged functionality and therapeutic benefit of its liver tissue candidate.
On Wednesday, the San Diego-based company put out a release indicating it was exploring strategic alternatives and implementing a restructuring plan. Roth Capital Partners has been tapped as a financial advisor to help with the exploration of alternatives.
In the release, the company said these “alternatives include the potential for an acquisition, merger, reverse merger, business combination, sale of assets, licensing or other strategic transactions involving the company.”
Organovo also said it was also canceling its 1Q19 earnings call on Thursday. Organovo takes human cells and uses its 3-D bioprinter to place the cells in a particular environment such that the natural order of life takes over and the cells begin to interact with one another, creating functional human tissue.
The company sought to restore the 3-D architecture of the tissue of the liver and build the tissue with multiple cell types. Organovo said its 3-D bioprinting enables re-establishment of in vivo-like form and function.
“After a rigorous assessment of our liver therapeutic tissue program, we’ve concluded that the variability of biological performance and related duration of potential benefits presents development challenges and lengthy timelines that no longer support an attractive opportunity given our resources,” said Taylor J. Crouch, CEO, Organovo said in a release. “As a result, we’ve suspended development of this lead program and have engaged Roth to explore strategic alternatives focused on maximizing stockholder value. We’re also taking restructuring steps to manage our resources and extend our cash runway as we evaluate a range of ways to generate value from our technology platform and intellectual property, our commercial and development capabilities, and our financial assets.”
Today’s news is a far different story from the position Organovo occupied back in 2014. It was during this time, MD+DI named Organovo as one of Five Startups Poised to Change Medtech Forever.
Firing on all cylinders back in 2013, Organovo was able to deliver the first sample of its 3-D bioprinted-liver tissue more than two months ahead of its target date.