Organogenesis - a tissue engineering worth sneezing about? Message Board

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Biotech / Medical : Organogenesis - a tissue engineering worth sneezing about?

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To: SemiBull who wrote (6)	4/16/2002 10:26:08 PM
From: mopgcw	of 7

Auditor Doubts Organogenesis' Going Concern Ability DOW JONES NEWSWIRES WASHINGTON -- Organogenesis Inc. (ORG) auditor PricewaterhouseCoopers LLP said it has doubt about the company's ability to continue as a going concern, according to the company's annual report filed Tuesday with the Securities and Exchange Commission. The company also said it isn't in compliance with American Stock Exchange listing rules related to shareholder equity and a delisting could trigger debt defaults. Pricewaterhouse said in its report on the biotechnology company's financial statements that Organogenesis has posted recurring operating losses, has a working capital deficiency and has long-term debt that may become immediately due upon an event of default. Organogenesis management said in the filing they believe the company has enough liquidity to operate through March 2003 based on plans to cut staff, $15.5 million in proceeds from a March private placement, further cost cutting plans and programs to boost revenue on its Apligraf and Fortaflex products. However, the company also noted in the filing that it doesn't comply with American Stock Exchange listing guidelines due to a shareholder equity deficiency and recurring losses. If the company were delisted, holders of $27.5 million in long-term convertible debt could declare a default and require the debt be paid immediately, the filing said. The company is under review by the exchange and discusses its progress on raising capital and meeting operating goals regularly with the Amex, the filing said. Organogenesis had a net loss of $30 million for 2001 compared with a net loss of $28.6 million for 2000, the filing said. Organogenesis, based in Canton, Mass., develops and makes medical products containing living cells or natural connective tissue.

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