- Organogenesis Holdings Inc's Q2 FY22 sales reached $121.4 million, down 1% Y/Y, slightly ahead of the consensus of $120.90 million.
- The decrease was driven by a 35% decrease in Surgical & Sports Medicine products, partially offset by a 2% increase in Advanced Wound Care products.
- The gross margin improved from 76% to 78%. Operating income fell almost 50% to $11.9 million.
- Adjusted net income reached $11.3 million compared to $20.3 million a year ago. Adjusted EBITDA was $18.6 million, a decrease of 26% Y/Y.
- Guidance: For FY22, Organogenesis forecasts sales of $465-$490 million, a decrease of approximately 1% - an increase of 5% Y/Y and 2% - 7% on an adjusted basis, and compared to the consensus of $494.15 million.
- The company forecasted sales of $485-$515 million in May.
- The outlook includes sales from Advanced Wound Care products of $435-$456 million, down from the previous outlook of $455-$481 million.
- The company reaffirmed Surgical & Sports Medicine product sales of $30-$34 million.
- The company expects an adjusted net income of $33-$43 million and adjusted EBITDA of $60-$74 million, down from previous guidance of $47.3-$58.8 million and $79.9-$95.3 million, respectively.
- After disruptions at GSK plc , supplies of rotavirus infection vaccine in children have either run out in Kenya, Tanzania, Senegal, and Cameroon or are close, Reuters reported citing officials close to the roll-out.
- According to the World Health Organization, up to 200,000 children die each year of contagious infection.
- The infection causes severe, dehydrating gastroenteritis in children under five years.
- GSK confirmed a shortfall of around 4 million doses of its Rotarix vaccine in 2022, dropping 42 million from an expected 46 million.
- GSK acknowledged the fall in supply and said it was pursuing plans to address the deficit.
- The company had already cut its agreed deliveries by 10 million a year for 2022-2028, Gavi, the Vaccine Alliance, said.
- "GSK communicated to Gavi earlier this year on manufacturing challenges leading to an unplanned, short-term drop in Rotarix production for 2022, for which priority mitigation plans are fully in place," a GSK spokesperson told Reuters.
- Gavi said there were also delays with another rotavirus vaccine, Rotavac, manufactured by Bharat Biotech, related to "regulatory procedures," although the problem is not as significant.
