Osiris Therapeutics rises on Medicare decision
Osiris rises after Medicare agrees to reimbursement code for Grafix stem cell therapy
NEW YORK (AP) -- Shares of Osiris Therapeutics Inc. rose Wednesday after the stem cell product developer said Medicare is assigning reimbursement codes to its Grafix skin therapy.
The Columbia, Md., company said the transitional code will take effect July 1. Medicare plans to create a permanent reimbursement code for Grafix, and if it does so, that code would take effect in January. The code makes easier for physicians who use Grafix on a Medicare patient to get reimbursement from the Medicare program, and that encourages greater use of the product.
Osiris shares gained 50 cents, or 7.7 percent, to $6.99 in afternoon trading.
Grafix is applied to acute and chronic wounds like burns or diabetic foot ulcers to promote healing. It contains mesenchymal stem cells.
In the first quarter Osiris reported $1.1 million in revenue from Grafix and Ovation, a similar product that is used in bone repair.
