Organogenesis Holdings shares hit a three-month low during Thursday’s regular trading session after the company released its second-quarter financial results and announced the withdrawal of its 2023 guidance.
At 3:31 p.m. ET, the stock was down 18% at $2.77, reaching an intraday low of $2.30 earlier in the day, the lowest level seen since May 10. The volume of shares traded at that time exceeded the stock’s 65-day average volume of 1.1 million, reaching over 3.2 million.
Year to date, the regenerative medicine company’s shares have increased by more than 4%.
In its earnings report released after the market close on Wednesday, Organogenesis reported second-quarter earnings per share of 4 cents, with revenue amounting to $117.3 million. These figures reflect a decline compared to the year-ago period, which saw earnings per share of 7 cents and revenue of $121.4 million.
The company explained that it is withdrawing its fiscal year 2023 guidance due to uncertainty caused by the decisions made by Novitas, First Coast Services, and CGS. These entities have limited coverage for the treatment of diabetic foot ulcers and venous leg ulcers exclusively to Apligraf and Dermagraft.
Previously, Organogenesis had expected revenue between $454 million and $466 million for fiscal year 2023.
