Osiris Therapeutics Inc. ( OSIR ) reported a second-quarter 2013 loss of 11 cents per share, a couple of cents wider than the Zacks Consensus Estimate but narrower than the year-ago loss of 13 cents per share. Revenues for the quarter came in at $5.4 million, above the Zacks Consensus Estimate of $4.0 million and the year-ago quarter revenues of $1.7 million.
Biosurgery product revenues came in at $5.3 million, up 231% from the year-ago period.
Research and development (R&D) expenses declined 19.5% from the year-ago period to $3.3 million. Selling, general and administrative expenses increased 214.3% from the year-ago period to $4.4 million due to higher commercial activities in the Biosurgery segment.
Osiris has made significant progress with stem cell therapies. The upside potential to lead candidate Prochymal could be enormous. Prochymal gained approval in Canada and New Zealand in the second quarter of 2012 for the treatment of acute graft-versus-host disease (GvHD) in children. Prochymal is the first manufactured stem cell product to gain approval and the first treatment to gain approval for GvHD.
Osiris is studying Prochymal for several indications including Crohn's disease and acute myocardial infarction, which are blockbuster indications.
The company is looking for a partner for Prochymal. Last year, Osiris had regained commercial rights for Prochymal and Chondrogen from Sanofi ( SNY ).
Osiris currently carries a Zacks Rank #3 (Hold). At present, companies like Actelion Ltd. ( ALIOF ) and Anika Therapeutics, Inc. ( ANIK ) look well-positioned with both being Zacks Rank #1 (Strong Buy) stocks.