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The share price of the 3D printing and biomedical company has increased 20 percent over the past month alone.
Organovo Holdings (NYSEMKT:ONVO) develops and commercializes functional human tissues that are used as therapeutic implants, as well as in drug discovery and development and biological research.
The company develops these tissues using the NovoGen Bioprinter, which uses multiple 3D bioprinting technologies. Organovo’s share price has increased by 20 percent in the last month, making it an exciting prospect in the 3D printing and life sciences landscapes.
Uniting tech and life science
As mentioned, Organovo connects the life science and technology sectors by using 3D printing technology in a biomedical context. Specifically, the NovoGen Bioprinter gives the company the ability to create human tissues that mimic native human tissues on multiple levels, including composition, architecture and function.
For example, the company’s exVive3D Human Liver Tissue is intended to be used for predictive preclinical testing of drug components. Also in development is 3D Human Kidney Tissue, intended for the same purpose.
Most recently, Organovo announced on October 13 that it’s signed an exclusive worldwide licensing agreement with UniQuest, the main technology transfer and commercialization company of the University of Queensland. Commenting on the deal, UniQuest CEO Dr. Dean Moss said that it is “is anchored in world-leading induced pluripotent stem cell research by Professor Melissa Little and follows a research collaboration between The University of Queensland and Organovo, facilitated by UniQuest.”
An analyst favorite
Organovo’s interesting focus seems to be serving it well. As noted, its share price has risen 20 percent in the last month, and at close of day Tuesday was up 4.13 percent, trading at $3.28. Market watchers have taken note, with The Bulletin reporting that analysts have given the company a 1.67 rating on a scale where 1 represents a “strong buy” advisory, 2 represents a “buy” and 5 stands for “strong sell.”
Trade-Ideas has also noted Organovo as a stock to watch, identifying the company as “strong on high relative value.” Stocks that are “strong on high relative value” are good to watch because major volume moves often point towards underlying activity. For instance, they could represent M&A events, analyst upgrades, insider buying or hedge funds piling into a stock before a catalyst.
Investors interested in the 3D printing and life sciences markets may thus want to keep an eye on Organovo. One catalyst in particular will be the release of its results for the second fiscal quarter of 2016 on November 9.
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.