Osiris reported third quarter 2014 earnings of $0.02 per share,
better than the Zacks Consensus Estimate of a loss of $0.05 per
share and the break-even results in the year-ago quarter. Revenues
were $17.2 million, surpassing the Zacks Consensus Estimate of $15
million and increasing 150% y-o-y and 29.3% sequentially. Osiris'
Biosurgery segment has been gaining traction over the past few
quarters. The company's increased sales effort has started paying
off. We are also positive on the company's sale of its ceMSC
business which has not only brought in cash for Osiris in the form
of an upfront payment but will also bring in royalties. While
encouraged by the company's progress with its Biosurgery business,
we remain concerned about the dependence on a single segment for
growth. We remain Neutral on the stock.
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 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 $24.3 million in 2013, up from
$7.8 million in 2012.
Osiris Therapeutics, Inc. (OSIR): Read the Full
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