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.
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Osiris shares jump on higher 4Q revenue report