Osiris Therapeutics, Inc.
) recently announced that it has regained global rights to
Prochymal and Chondrogen from Genzyme, a
Osiris and Genzyme's association dates back to October 2008 when
the companies entered into a collaboration agreement for the
development and commercialization of Prochymal and Chondrogen.
While Osiris had retained the rights to commercialize Prochymal and
Chondrogen in the US and Canada, Genzyme gained exclusive rights to
commercialize Prochymal and Chondrogen in all other countries,
except with respect to graft versus host disease (GvHD) in Japan,
where Osiris has an agreement with JCR Pharmaceuticals.
However, earlier this year, Sanofi, in its fourth quarter press
release, had said that it has discontinued the development of
Prochymal for GvHD. Osiris said that the announcement was made
without its knowledge or advice and the company's President and CEO
clarified that Prochymal's development for GvHD has not been
discontinued. Although the company had not received any
communication from Sanofi regarding the termination of their
agreement, Osiris notified Sanofi that it is treating Sanofi's
statement as an intention to terminate the agreement.
Sanofi, in turn, informed Osiris that it is not in agreement
with its interpretation of the fourth quarter R&D update.
Osiris had asked Sanofi for a clarification regarding the
The amicable ending of the dispute has removed a significant
overhang for Osiris. We are positive on this development which will
now allow the company to pursue collaboration agreements for
Prochymal and Chondrogen with other parties.
Prochymal's approval in Canada in May 2012 for the treatment of
acute GvHD in children is a major milestone for Osiris. The company
expects to launch Prochymal with reimbursement in Canada later this
year. We currently have a Neutral recommendation on Osiris, which
carries a Zacks #3 Rank (short-term 'Hold' rating).
OSIRIS THERAPTC (OSIR): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
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