UPDATE: JMP Securities Initiates Coverage on Organovo on Fair Valuation

In a report published Wednesday, JMP Securities analyst J.T. Haresco initiated coverage on Organovo (NYSE: ONVO) with a Market Perform rating.

In the report, JMP Securities noted, “We are initiating coverage on Organovo Holdings at Market Perform. Organovo is a development-stage company focused on leveraging its proprietary 3-D bioprinting technology to develop cell-based assays that can drive both internal and external drug discovery efforts, contract research partnerships, and the pursuit of proprietary, 3-D printing-based biotherapeutics. The company has already attracted the interest of Pfizer and United Therapeutics, both of whom are evaluating the platform as a potential tool in their respective arsenals of drug discovery assets. While we are enthusiastic about the breadth of applications for Organovo's technology, we believe that the current share price reflects the majority of the technology's revenue potential; thus, we feel shares are fairly valued currently. We are opting to remain on the sidelines until there is more visibility on: 1) progress toward the launch of its 3-D Liver product (December 2014); 2) launch timing for other cell-based assays; 3) the size and scope of potential lead discovery programs and CRO-like relationships; and 4) the company's long-term goal of pursuing a 3-D printed biotherapeutic tissue.”

Organovo closed on Tuesday at $8.77.