Organovo Holdings, Inc. (ONVO)

[WHP03]

Qtrly numbers were negative, to factual - down 15% Quarter over Quarter. It required another adjustment to full year guidance, $4.5-5.2MM. They'll need to better than average in Q4 (current qtr ending March 31) to reach MIDDLE of guide. Two years running they've reduced guidance and their track record for hitting their own guidance, without reducing guidance as they go, is poor to say the least.

Service revenue (the portion of their business that is reliable qtr to qtr) also declined 12%.

The last time the company said - it won't be necessary to raise capital (for two yrs) they raised in < 6 months. The company will raise money when they need. I'm glad to hear them say they're not going to raid the cookie jar until 2019, but raid it they will - over and over. Mathematically they MUST tap their $100MM ATM over and over to cover their significant monthly burn as they strive to bring their liver patch to market (2+ yrs out).

My position remains - their best chance at success is to land a well-heeled partner. I'd rather than 51% of something significant (a life saving liver patch company) then 100% of nothing - which is what's more likely if they feel compelled to go it alone in the long-run.