Organogenesis (ORGO, Financial) has expressed strong support for the Centers for Medicare & Medicaid Services' (CMS) recently proposed payment model for skin substitutes. This approach, concerning cellular and tissue-based products (CTPs), is part of the CY 2026 Physician Fee Schedule. ORGO is encouraging CMS to set the payment rates for 2026 based on the clinical effectiveness and relative costs of these products.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Organogenesis Holdings Inc (ORGO, Financial) is $7.00 with a high estimate of $7.00 and a low estimate of $7.00. The average target implies an upside of 55.90% from the current price of $4.49. More detailed estimate data can be found on the Organogenesis Holdings Inc (ORGO) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Organogenesis Holdings Inc's (ORGO, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Organogenesis Holdings Inc (ORGO, Financial) in one year is $3.62, suggesting a downside of 19.38% from the current price of $4.49. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Organogenesis Holdings Inc (ORGO) Summary page.
ORGO Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Organogenesis Holdings Inc (ORGO, Financial) delivered sales in line with their guidance range for Q1 2025.
- The company supports CMS's decision to delay the LCD implementation, which allows for a review of coverage policies.
- Organogenesis reaffirmed their financial guidance for 2025, showing confidence in their commercial strategy.
- The company is aggressively pursuing additional clinical and real-world evidence to secure coverage for their products.
- Organogenesis is expanding manufacturing capabilities with a new facility in Rhode Island, which will support new product introductions.
Negative Points
- Net revenue for Q1 2025 was down 21% year-over-year, reflecting disruptions in customer demand.
- Gross profit was negatively impacted by lower revenue over fixed costs and expired excess product due to LCD delays.
- Operating expenses increased by $4.6 million, driven by a write-down of assets held for sale.
- The company reported an operating loss of $26.7 million for Q1 2025, significantly higher than the previous year.
- There is ongoing uncertainty in the market due to delays in the LCD implementation, affecting customer buying behavior.
