Osiris Therapeutics (OSIR) Loses A Third Of Its Market Value
Shares of Osiris Therapeutics (OSIR) are off 35% to $7.40, a 52-week low, on news that preliminary results for two phase III trials evaluating Prochymal for the treatment of acute graft versus host disease (GvHD). GvHD, the most common complication of bone marrow transplantation, is a life-threatening disease for which there is currently no approved treatment. Prochymal showed significant improvements in response rates in difficult-to-treat liver and gastrointestinal GvHD, however neither trial reached its primary endpoint.
Results for its last reporting period were fairly good however. For the second quarter of 2009 Osiris reported revenues of $10.5 million, compared to $2.5 million for the same period of the prior year. Current year revenue primarily reflects the recognition of $10.0 million in amortized license fees from Genzyme.
The company reported net loss of $9.7 million or $0.30 per share for the quarter, compared to a loss of $15.4 million and $0.48 per share for the same period last year.
Douglas A. McIntyre
