Osiris Therapeutics, Inc. (OSIR): New Analyst Report from Zacks Equity Research – Zacks Equity Research Report

Summary: Osiris reported break-even earnings in the third quarter of 2013, well above the Zacks Consensus Estimate of a loss of $0.09 and the year-ago loss of a penny per share. Revenues for the quarter came in at $6.9 million, in line with the Zacks Consensus Estimate and above the year-ago revenues of $2.2 million. In early Oct 2013, Osiris sold its culture-expanded mesenchymal stem cell (ceMSC) business including Prochymal to a wholly-owned subsidiary of Mesoblast Limited. This deal has not only brought in cash for Osiris in the form of an upfront payment, the company will also be entitled to royalty payments. We are moving back to a Neutral recommendation as we believe the current price reflects the afore-mentioned positive developments.

Overview:

Columbia, Md.-based Osiris Therapeutics, Inc. focuses on the development, manufacture and sale of biologic products which have been developed to promote the body's natural healing process and improve surgical outcomes. Currently marketed products include Grafix, Ovation, OvationOS and Cartiform for tissue repair.

In Oct 2013, Osiris sold off its culture-expanded mesenchymal stem cell (ceMSC) business including Prochymal to a wholly-owned subsidiary of Mesoblast Limited for up to $100 million. Osiris will also be entitled to receive single to low double-digit royalties on sales of products derived from the ceMSC technology. Osiris has also retained a license to all transferred intellectual property necessary to run its other businesses.

Osiris generates revenues from the Biosurgery segment, collaborative agreements, government contracts and research licenses. Total revenues came in at $11.8 million in 2012, down from $42.4 million in 2011.

OSIRIS THERAPTC (OSIR): Free Stock Analysis Report

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Osiris Therapeutics, Inc. (OSIR): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report