Organogenesis slides after reporting Q2 results, removing FY guidance

Shares of Organogenesis are under pressure on Thursday after the wound-care products manufacturer reported quarterly results and withdrew its forecast for the fiscal year. The company reported Q2 2023 revenue of $117.3M versus consensus of $118.2M, and down $4.1M from Q2 2022. Organogenesis’ also said that it was withdrawing its previously announced fiscal year 2023 guidance, originally issued on May 10, 2023, “due to the uncertainty resulting from the potential impact of the recently published local coverage determinations from Novitas, First Coast Services and CGS to limit coverage for treatment of diabetic foot ulcers and venous leg ulcers to include only Apligraf and Dermagraft. The company is currently unable to predict the impact that the recently published local coverage determinations will have on its financial position and operating results.” In Thursday morning trading, shares of Organogenis have dropped almost 25% to $2.55.