Osiris Announces Receipt Of $15 Million Milestone Payment For Prochymal
Therapeutics, Inc. (NASDAQ: OSIR), the leading stem cell company
focused on developing and marketing products to treat conditions in
orthopedic, sports medicine and wound care markets announced that it has
Osiris Therapeutics, Inc. (NASDAQ: OSIR), the leading stem cell company focused on developing and marketing products to treat conditions in orthopedic, sports medicine and wound care markets announced that it has received a $15 million milestone payment from Mesoblast for successful completion of the transfer of assets relating to the Prochymal business. In October 2013, Osiris announced an agreement with a wholly-owned subsidiary of Mesoblast Limited (ASX:MSB; USOTC:MBLTY) for the acquisition of Osiris’ culture-expanded mesenchymal stem cell (ceMSC) business, including Prochymal, in a transaction worth up to $100 million in initial consideration and milestone payments as well as future royalties. The milestone that was achieved was in consideration of transition and delivery of the major assets related to its ceMSC business. The payment was made in Mesoblast equity with customary downside protection after the 12-month holding period. Osiris continues to provide services to Mesoblast as part of the agreement to ensure a smooth transition. As a result of the transaction, Osiris expects to report a profit for the fourth quarter 2013 and full fiscal year. “We are pleased to have achieved this milestone and we are now fully focused on our commercial products and biosurgery pipeline,” said Philip R. Jacoby, Jr., Chief Financial Officer of Osiris Therapeutics. “The additional resources allow us to make investments in our commercial infrastructure and clinical programs to further demonstrate the clinical benefits of our products.” About Osiris Therapeutics Osiris Therapeutics, Inc. is the leading stem cell company, having developed the world’s first approved stem cell drug, remestemcel-L for graft versus host disease. Osiris’ products include Grafix® and Ovation® for acute and chronic wounds, Cartiform®, a viable cartilage mesh for cartilage repair and the latest addition to Osiris’ line of products, OvationOS™, a viable bone matrix. Osiris is a fully integrated company with capabilities in research, development, manufacturing and distribution. Osiris has developed an extensive intellectual property portfolio to protect the company's technology and commercial interests.