Organovo Holdings Inc (NYSEMKTS:ONVO) has filed a lawsuit against Simeon Research, a firm which has issued a couple of scathing reports against the 3D bio-printing company. In a statement emailed to ValueWalk, Organovo said it believes the statements Simeon made against it are “factually inaccurate grossly misleading or potentially harmful” to their business.
How Simeon’s report on Organovo differs from others
The company filed the lawsuit on Monday in the Delaware Court of Chancery. Organovo Holdings Inc (NYSEMKTS:ONVO) says it encourages open dialogues with shareholders and the financial community as a whole but states that this dialogue “must be truthful and ethically conducted.”
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In addition, the company focuses on discrediting Simeon Research, which (unlike other firms which have reports on it) appears to be the only firm (that we’re aware of) which is solely targeting Organovo Holdings Inc (NYSEMKTS:ONVO). Simeon has yet to publish any other short theses on any other companies, although the unnamed person who speaks on the firm’s behalf has told ValueWalk in the past that they have plans to do so at some point. Several other firms have written negatively on the 3D industry as a whole rather than just Organovo, which does differentiate Simeon’s report from these others.
“Organovo has confidence in its case and its ability to demonstrate that statements in the reports are false,” said an unnamed company spokesperson in an emailed statement. “The Company also has confidence in how the defendant will be viewed by the Court. Simeon Research LLC was formed as a legal entity, and its website was first created, shortly before the issuance of its first report on Organovo. Although it created the appearance of a “long / short analytical equity research” firm, its reports are not attributed by name to any person, in contrast to standard industry practice. Its website and incorporation documents contain no names of any individuals involved with the entity.”
Organovo continues research on liver tissue printing
Management states that they are still on track for launching their 3D liver product later this year.
“The Company believes, based on the feedback from its collaborators and scientific advisors, that the demonstrated performance of the 3D Liver to date provides it with the opportunity to redefine the category of in vitro assays,” continued the Organovo Holdings Inc (NYSEMKTS:ONVO) spokesperson.
They also highlighted a number of research collaborations they signed with top corporate and academic partners” in three of the areas they are focusing on, which include liver, cancer, skin, and kidney tissues. This year, the company also signed a collaboration agreement with the U.S. National Institutes of Health to develop eye tissues.
**This report previously referred to Simeon Research as a short selling firm and indicated that the firm is shorting Organovo. Simeon Research actually states that it is a research firm and has not specified whether it has any position in Organovo. This report has been corrected.