The share price of Osiris Therapeutics, Inc. ( OSIR ) fell 4.2% after the company announced its second-quarter results on Aug 7. Since then, share prices have however recovered approximately 1.2%.
Osiris Therapeutics reported second-quarter 2014 loss of 4 cents per share, a penny narrower than the year-ago loss of 5 cents per share. Higher operating costs partially offset the increase in revenues. The Zacks Consensus Estimate was of earnings of 30 cents per share. Non-cash charges related to the Mesoblast stock price decline affected results.
Revenues for the quarter came in at $13.3 million, surpassing the Zacks Consensus Estimate of $11 million and increasing 151.2% from the year-ago quarter. Revenues increased 32% sequentially.
Research and development (R&D) expenses remained flat year over year at $1.1 million. Going forward, the R&D spend will increase as the company conducts additional studies on Grafix, develops new products and continues with its product improvement efforts.
Selling, general and administrative expenses increased to $9.3 million from $4.2 million in the year-ago period reflecting investment in commercial activities. The company has increased its sales force significantly for the promotion of Grafix.
Osiris Therapeutics is also looking to expand the Grafix label for diabetic foot ulcers (phase III), venous leg ulcers (phase III), and complex and exposed wounds (met with the FDA to discuss the path for regulatory submission, additional phase III studies planned).
Osiris Therapeutics is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the healthcare sector include Endo International ( ENDP ), Salix Pharmaceuticals ( SLXP ) and Anacor Pharmaceuticals, Inc. ( ANAC ). While Endo sports a Zacks Rank #1 (Strong Buy), Salix Pharma and Anacor Pharma are Zacks Rank #2 (Buy) stocks.
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