Osiris Therapeutics, Inc. (NASDAQ:OSIR), the leading stem cell company focused on developing and marketing products in orthopedic, sports medicine and wound care markets announced today its financial results for the third quarter of 2013.
Highlights and Recent Developments
- Product revenue for the quarter rose to $6.9 million - up 220% from the third quarter of 2012.
- Gross margin increased to $5.0 million for the quarter - up 254% from the third quarter of 2012.
- Continuing operations turned profitable and generated $1.8 million in positive cash flow during the first nine months.
- Demonstrated overwhelming efficacy in a multi-center, randomized, controlled clinical trial evaluating Grafix® in the treatment of diabetic foot ulcers, reaching significance on all primary and secondary endpoints.
- Expanded our new product pipeline with positive one-year results on Cartiform®, the introduction of OvationOS™, and the initiation of a new clinical trial in venous leg ulcers, representing more than a billion dollars in market potential.
- Reached a favorable agreement with FDA regarding the regulatory status of the company’s Biosurgery products.
- Announced an agreement for Prochymal worth up to $100 million plus royalties, eliminating all future Prochymal development costs.
- Recognized a deferred tax asset of $13.6 million in October as a benefit of the Prochymal transaction and as a result, expect to report a profit for the fourth quarter and full fiscal year.
- Ended the quarter with pro forma cash, investments and receivables of approximately $82 million.
“We have now successfully transformed Osiris from a concept into a biotechnology reality with positive cash flow, expanding product sales, a strong balance sheet, no debt and a solid pipeline,” said C. Randal Mills, Ph.D., President and Chief Executive Officer of Osiris. “Importantly, we have accomplished this with minimal dilution to our shareholders. While these results clearly set Osiris apart in the stem cell industry, the team is focused solely on realizing the opportunities ahead of us.”