Shares in regenerative medicine company Organogenesis (ORGO) strode 20% higher in pre-market trading today after a successful trial of its foot ulcer treatment.
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Non-Healing Ulcers
The company, which is focused on the development, manufacture and commercialization of product solutions for the Advanced Wound Care and Surgical and Sports Medicine markets, said it had completed a randomized controlled trial (RCT) of its PuraPly AM treatment in the management of non-healing diabetic foot ulcers (DFUs).
The trial of 170 patients evaluated the safety and efficacy of PuraPly, with the company saying that it achieved its primary endpoint, demonstrating statistically significant wound closure at 12 weeks. “These findings further demonstrate the clinical effectiveness of PuraPly in the management of DFUs expanding the body of evidence supporting its use,” it said.
Critical Treatment Role
Patrick Bilbo, Chief Operating Officer of Organogenesis, said: “These wounds pose a significant burden to patients and are extremely costly to our healthcare system. We believe publication of these impactful results will strongly support PuraPly AM’s inclusion in future coverage policies, underscoring its critical role in the healing paradigm.”
Approximately 15% of individuals with diabetes will eventually develop DFU, and 14%-24% of them will require amputation of the ulcerated foot due to bone infection or other ulcer-related complications.
As seen by its share price reaction, this is a positive boost to Organogenesis, which has a limited drug pipeline at present.
Is ORGO a Good Stock to Buy Now?
Given the lack of Wall Street analyst coverage of the ORGO stock, let’s look at how its share price has performed over the last three months. As can be seen below, it is down nearly 48% over the period.
