Osiris reported break-even earnings in the third quarter of 2013,
well above the Zacks Consensus Estimate of a loss of $0.09 and the
year-ago loss of a penny per share. Revenues for the quarter came
in at $6.9 million, in line with the Zacks Consensus Estimate and
above the year-ago revenues of $2.2 million. In early Oct 2013,
Osiris sold its culture-expanded mesenchymal stem cell (ceMSC)
business including Prochymal to a wholly-owned subsidiary of
Mesoblast Limited. This deal has not only brought in cash for
Osiris in the form of an upfront payment, the company will also be
entitled to royalty payments. We are moving back to a Neutral
recommendation as we believe the current price reflects the
afore-mentioned positive developments.
Columbia, Md.-based Osiris Therapeutics, Inc. focuses on the
development, manufacture and sale of biologic products which have
been developed to promote the body's natural healing process and
improve surgical outcomes. Currently marketed products include
Grafix, Ovation, OvationOS and Cartiform for tissue repair.
In Oct 2013, Osiris sold off its culture-expanded mesenchymal
stem cell (ceMSC) business including Prochymal to a wholly-owned
subsidiary of Mesoblast Limited for up to $100 million. Osiris will
also be entitled to receive single to low double-digit royalties on
sales of products derived from the ceMSC technology. Osiris has
also retained a license to all transferred intellectual property
necessary to run its other businesses.
Osiris generates revenues from the Biosurgery segment,
collaborative agreements, government contracts and research
licenses. Total revenues came in at $11.8 million in 2012, down
from $42.4 million in 2011.
Osiris Therapeutics, Inc. (OSIR): Read the Full
OSIRIS THERAPTC (OSIR): Free Stock Analysis
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