In this Thursday, Sept. 22, 2011, photo, employees at Groupon pose in silhouette by the company logo in the lobby of the online coupon company's Chicago offices. Groupon Inc., the No. 1 online deals service, failed to show investors on Thursda, Nov. 8, 2012, that its business is growing as quickly as they would like, as it was hurt by what it called "continued challenges" from the economic weakness in Europe. (AP Photo/Charles Rex Arbogast)

Osiris shares jump on higher 4Q revenue report

Published: 03:44:30 PM, Wed 06 March 2013 UTC

COLUMBIA, Md. (AP) — Shares of stem cell therapy developer Osiris Therapeutics Inc. rallied Wednesday after the company reported a jump in revenue from new surgical repair products.

Osiris said its product revenue increased more than 280 percent to $3.1 million in the fourth quarter of 2012, primarily from sales of Grafix, a wound healing implant designed to treat diabetic foot ulcers and other serious injuries. The company has begun promoting the device via a direct sales force in 10 major U.S. cities.

Despite increased product sales, the company's revenue from research collaborations and contracts plummeted after the end of an agreement with Sanofi. The company posted just $179,000 from research collaborations in the quarter, compared to $10.3 million in the last quarter of 2011.

The company swung to a net loss of $2.6 million, or 8 cents per share, compared with a profit of $5 million, or 15 cents per share, in the fourth quarter of 2011.

Osiris' experimental stem cell therapies include Prochymal, which is aimed at treating graft vs. host disease, a side effect of organ or bone marrow transplants. The Columbia, Md., company was developing Prochymal through a partnership with biotechnology company Genzyme. French drugmaker Sanofi later acquired Genzyme, and in February, Sanofi said it discontinued work on Prochymal

Canadian regulators granted conditional approval to Prochymal in May, and regulators in New Zealand gave full approval to Prochymal in June. The Food and Drug Administration has not approved Prochymal, but patients can get the treatment under certain conditions

For the full year, the company posted a loss of $11.1 million, or 34 cents per share, on revenue of $7.8 million.

Shares of Osiris Therapeutics soared 30 percent, or $2.04, to $8.95 in morning trading. Over the past year, the stock has traded between $4.47 and $14.46.

Tags: columbia, patients, cents, health, new zealand, quarter, wednesday, inc., md., drug administration, work, end, agreement, percent, net loss, stock, injuries, company, contracts, treatment, french drugmaker sanofi, morning trading, revenue, food, disease, certain conditions, jump, stem cell, host, biotechnology, therapy, product sales, conditional approval, bone marrow, major u.s. cities, graft, bone marrow transplants, product revenue, canadian regulators, revenue report, experimental stem cell, osiris therapeutics, osiris, research collaborations, prochymal, developer osiris therapeutics, surgical repair products, biotechnology company genzyme, diabetic foot ulcers, wound healing implant, direct sales force, osiris shares, grafix, diabetic foot, graft-versus-host disease

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