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That's true lol. Organogenesis has few layoffs but a lot of restructuring. Since 275 is permanently delayed and 150 is literally falling apart, they need to find a new place to continue operation. If puraply is at risk, it's cheaper to invest in a new facility for dermagraft then renovate 150. Also, 150 is owned by the previous owner (Alan) with extremely favorable terms, it also helps to own a shit torn of shares. Company is profitable but leadership can't manage a shoe box.
 






The original plan was to ramp up apligraft to offset puraply despite the margin hit. I'm guessing they need to add dermagraft to complete offset the revenue loss. With 100m in cash, they need to either aquire companies with a strong product portfolio or invest in operations. However, they just want to continue to milk the cow until retirement while promoting their kids.
 






anonymous said:
The original plan was to ramp up apligraft to offset puraply despite the margin hit. I'm guessing they need to add dermagraft to complete offset the revenue loss. With 100m in cash, they need to either aquire companies with a strong product portfolio or invest in operations. However, they just want to continue to milk the cow until retirement while promoting their kids.
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They shut down dermagraft production in 21 and 4 years they just found a facility!! Considering how things moves here. Dermagraft won't be hitting the market for another 3+ years. They had enough time to get it back in the market but just left it collecting dust. They need to set up the facility and get regulatory approval before. ReNu looks promising but it will take time before it hits the market as well. 2025 is going to be a rude awakening
 






Dermagraft was manufactured out of La Jolla and they closed that down due to the costs. The only thing out there now is a small R&D office. The plan was to manufacture it out of 275 but that's no longer feasible. 150 is falling apart so maybe they will move everything to RI.
 






anonymous said:
From last years earning call. Net revenue from Advanced Wound Care products of $108.8 million. Net revenue from Puraply sales ~57 million. They losing their best selling product. Unless there is a miracle about to happen they need to reduce operational costs...
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They stopped sharing their PuraPly sales numbers during the earnings calls over the past couple of quarters, likely because they know it could negatively impact their stock price. Here's the reality: the majority of their revenue has been driven by sales of PuraPly and Cygnus.
 






I once heard BG say that the company loses $10 for every unit of Apligraf that goes out the door. Of course everything BG says is a distortion or outright lie to serve the moment he is living in, so not the greatest reference point.
Sales revenue is about to evaporate, wholesale. Cygnus alone will wipe out nearly half of existing sales. That’s really bad if you are employed there.
What they will tell investors is that the reduction of all the competitors will allow for sales conversion to the small batch of covered products of which ORGO has several. What they won’t mention to investors (until they find out on their own) is that those remaining products are the least profitable. They won’t mention either that the LCD decimates the private office game for which they’ve been milking and fully dependent on.
Probably another class action suit on the horizon.
 






anonymous said:
I once heard BG say that the company loses $10 for every unit of Apligraf that goes out the door. Of course everything BG says is a distortion or outright lie to serve the moment he is living in, so not the greatest reference point.
Sales revenue is about to evaporate, wholesale. Cygnus alone will wipe out nearly half of existing sales. That’s really bad if you are employed there.
What they will tell investors is that the reduction of all the competitors will allow for sales conversion to the small batch of covered products of which ORGO has several. What they won’t mention to investors (until they find out on their own) is that those remaining products are the least profitable. They won’t mention either that the LCD decimates the private office game for which they’ve been milking and fully dependent on.
Probably another class action suit on the horizon.
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fuck you
 






anonymous said:
I used to work in the finance department and the gross margin for affinity and apligraft is 93% and 53%. What's crazy is the amount of money they spent renovating 275 Dan Rd. In 2023, they spent close to 25m starting the project then had to pay another 5m to stop. The leadership team makes decision based on daily sales and continue to pay 3m a year in rent at 150 Dan Rd and a few more millions and renovation. Another fuck up is the implementation of D365, tooked over 5 years and 30m due to the constant start and stop. Whats a shame because they people were truly great to work with but terrible leadership.
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93% margins? You wouldn’t be able to account for packaging and shipping with 7%. Oh, and commissions are anywhere from 6-12%. So you’re full of shit.
 






93% seems high but I don't think this includes commissions since that's under SG&A. If total margin for all products is ~77% and apligraft is only at 53% with a like 40% sales then 90% margin is probable. The company is cash flow positive for sure but mgmt don't know how to invest in long-term growth.
 






anonymous said:
They lost puraply with the new LCD. That's 50% of the wound/surgical sales. Juat do the math.
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You do realize that it only applies to DFU and VLU right? You do realize that a majority of wounds being treated in office and mobile wound care are not DFU or VLU right? Of course you don’t but go ahead and keep wasting air.
 












DFU and VLU accounts for $50m or 11% of annual revenue. This is a big loss for a company without a comparable substitute. Sure you can ramp up Apligraft to offset some of the revenue loss but the margin will kill you. Hence, layoffs and extreme cost cutting are planned for the remainder of the year and into 2025. What's crazy is that exec comps will remain flat YoY while the employees suffer. Bonus payout in 2022 was ~25%, not sure what 2023 was but 2024 will likely be low, similar to 2022.

"93% margins? You wouldn’t be able to account for packaging and shipping with 7%. Oh, and commissions are anywhere from 6-12%. So you’re full of shit."

I'm going to assume you are/were in sales with limited financial acumen. Gross margin excludes sales commissions. 2024 Sep YTD revenue is ~355M and gross profit came in at 271M which is ~76% margin. They don't break out the product mix but I'm sure you understand why its much cheaper to manufacture puraply vs. apligraft so you can deduct that 90% margin for one and 50% for the other is not out of the realm of possibility. I'm providing context to why the leadership is shit rather than a simple rant from a disgruntle sales rep. Now if you study the financials further, you will see a $18.8M and $4M write down which are related to the 275 Dan Rd and D365 fuck up from my previous posts. Thats a cool $22.8M cash out the door because the people that are getting paid millions are not held accountable.
 












anonymous said:
You do realize that it only applies to DFU and VLU right? You do realize that a majority of wounds being treated in office and mobile wound care are not DFU or VLU right? Of course you don’t but go ahead and keep wasting air.
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ablation of ulcer . steal from tax payers ! Itz not fraud at all !


VLUDFU OI sales at eleven percen ? Posting othr voices U hear ?
 






anonymous said:
You do realize that it only applies to DFU and VLU right? You do realize that a majority of wounds being treated in office and mobile wound care are not DFU or VLU right? Of course you don’t but go ahead and keep wasting air.
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That’s simply not true across the country. Sure if you have a one of the pigs in the southeast slapping this on every thing, then sure.
 






anonymous said:
DFU and VLU accounts for $50m or 11% of annual revenue. This is a big loss for a company without a comparable substitute. Sure you can ramp up Apligraft to offset some of the revenue loss but the margin will kill you. Hence, layoffs and extreme cost cutting are planned for the remainder of the year and into 2025. What's crazy is that exec comps will remain flat YoY while the employees suffer. Bonus payout in 2022 was ~25%, not sure what 2023 was but 2024 will likely be low, similar to 2022.

"93% margins? You wouldn’t be able to account for packaging and shipping with 7%. Oh, and commissions are anywhere from 6-12%. So you’re full of shit."

I'm going to assume you are/were in sales with limited financial acumen. Gross margin excludes sales commissions. 2024 Sep YTD revenue is ~355M and gross profit came in at 271M which is ~76% margin. They don't break out the product mix but I'm sure you understand why its much cheaper to manufacture puraply vs. apligraft so you can deduct that 90% margin for one and 50% for the other is not out of the realm of possibility. I'm providing context to why the leadership is shit rather than a simple rant from a disgruntle sales rep. Now if you study the financials further, you will see a $18.8M and $4M write down which are related to the 275 Dan Rd and D365 fuck up from my previous posts. Thats a cool $22.8M cash out the door because the people that are getting paid millions are not held accountable.
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How could ORGO know this number? “DFU and VLU accounts for $50m or 11%” There is no data to back this up, none. These are simply made up numbers.
 


















anonymous said:
How could ORGO know this number? “DFU and VLU accounts for $50m or 11%” There is no data to back this up, none. These are simply made up numbers.
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I agree. The previous Finance person is dropping some decent logic, but not when it comes to % wound mix. This has always been an unknown variable. ORGO can’t track it reliably, and they don’t even try. Let’s say you tried to do it via BV data, that data wouldn’t match the product (or more importantly SKU) that was used, or the number of applications that went on the patient (the resulting link to revenue).
Non-healing wounds that require an expensive intervention are usually dfu/vlu.
I don’t pretend I know the number, but I’d place a very large wager of my own money that’s it’s much larger than $50M of the company’s revenue.
Without PP or Cygnus the company will need to reinvent a massive hole in sales in a very short period of time. Unfortunately, those people that you —and the shareholders—will be depending on are not known for their inventiveness.
 






anonymous said:
I agree. The previous Finance person is dropping some decent logic, but not when it comes to % wound mix. This has always been an unknown variable. ORGO can’t track it reliably, and they don’t even try. Let’s say you tried to do it via BV data, that data wouldn’t match the product (or more importantly SKU) that was used, or the number of applications that went on the patient (the resulting link to revenue).
Non-healing wounds that require an expensive intervention are usually dfu/vlu.
I don’t pretend I know the number, but I’d place a very large wager of my own money that’s it’s much larger than $50M of the company’s revenue.
Without PP or Cygnus the company will need to reinvent a massive hole in sales in a very short period of time. Unfortunately, those people that you —and the shareholders—will be depending on are not known for their inventiveness.
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dear investors, onlyyy 11% of revenue will be impacted by MAC decision… oi does not treat slow to heal chronic ulcers……. acute injuries requir expensive products bc there is no data….

waste air. sour grape.
 






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