NEW YORK (TheStreet) -- Bacterin International (BONE)  is gaining on Thursday on the announcement of positive reactions to its OsteoSponge bone graft and after posting better-than-expected fiscal 2013 results.

By midday, shares had added 23.8% to $1.04.

Trading volume of 5.8 million was 36 times higher than its three-month daily average.

The nano-cap was surging after the results of its OsteoSponge bone graft were published in Orthopedics, a peer-reviewed journal. The article noted positive developments in 25 patients who underwent foot and ankle arthrodesis, with 96% showing radiographic fusion at 6 and 12 months postop.

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"We have spent a considerable amount of effort and resources supporting the clinical efficacy of our products through peer-reviewed publications in recent years and the results of this study further serve as testament to our role as a leader in the orthobiologic sector," said chief scientific officer Dr. Gregory Juda in a statement.

Separately, after the bell Wednesday, the bone graft developer reported its fiscal 2013 results.

In the 12 months to December, the Belgrade, Mont.-based business generated $33.1 million in revenue, $240,000 higher than analysts surveyed by Thomson Reuters had expected. A net loss of 24 cents a share was 4 cents narrower than analysts had forecast.

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