OT Osiris strikes deal to sell marquee stem-cell drug for $100M
Look at this deal-
Osiris strikes deal to sell marquee stem-cell drug for 100M
Oct 12, 2013 (Menafn - The Baltimore Sun - McClatchy-Tribune Information Services via COMTEX) --Columbia biotechnology company Osiris Therapeutics has reached a deal to sell its marquee stem-cell drug, the first to win government approval, for up to 100 million.
A subsidiary of Australian company Mesoblast Ltd. has agreed to pay 50 million for the technology behind Prochymal and the drug itself, and Osiris could receive up to 50 million more if the drug passes clinical trials and regulatory reviews, the companies said.
Prochymal is being evaluated in a final round of clinical trials for use in treating Crohn's disease as well as a disorder known as graft-versus-host disease, which can occur after stem cell or bone marrow transplants. Osiris was founded in 1992 to develop stem-cell therapies that can be used to stop inflammation and regenerate tissue.
The deal would mean Osiris moving on from what has been its key project for more than 20 years. Company officials said the sale allows them to focus on other projects with potential.
"With this transaction, we will focus our business on those areas that are of greatest commercial value to Osiris moving forward," Osiris Chairman Peter Friedli said in a statement.
Other projects the company is working on include Chondrogen and Osteocel-XC, both drugs that stimulate bone regeneration.
They continue to hold the proprietary rights for use with all of their other products and it is really a partnership deal with Mesoblast. Mesoblast lost a patent trial last year to Osiris. They have the ability to move this forward faster than Osiris. It is a win/win, really. And, Osiris is ready to turn their focus to their biosurgery products ... I have a feeling they have a rabbit in their hat as regards to that area!!