BTIG analyst Ryan Zimmerman maintained a Buy rating on Organogenesis Holdings yesterday and set a price target of $7.00.
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Ryan Zimmerman has given his Buy rating due to a combination of factors surrounding Organogenesis Holdings. Despite the second Phase 3 trial of ReNu not achieving statistical significance for its primary endpoint, the company remains committed to pursuing FDA clearance. The first Phase 3 trial had previously met its primary endpoint, and improvements in function were statistically significant across both trials. This indicates that ReNu has potential, even though the control group in the second trial performed better than expected.
Zimmerman also notes that Organogenesis intends to request a pre-BLA meeting with the FDA, potentially using combined results from both trials to support their submission. Additionally, the valuation of Organogenesis is based on its sales within the Wound Care and Surgical & Sports Medicine segments, rather than solely on ReNu. This diversified revenue base, along with the company’s proactive steps towards FDA clearance, supports Zimmerman’s Buy rating, as he anticipates steady valuation and potential share price increases.
ORGO’s price has also changed moderately for the past six months – from $5.220 to $4.680, which is a -10.34% drop .