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Osiris: Grafix reimbursement won't change for now

NEW YORK (AP) -- Osiris Therapeutics said Friday that Medicare reimbursement rates for outpatient use of its wound care product Grafix should stay the same for about two more years.

Shares of Osiris Therapeutics Inc. rose 64 cents, or 3.8 percent, to $17.59.

The Centers for Medicare and Medicaid Services is proposing a new rule on reimbursement for skin substitutes like Grafix when they are used in locations like a clinic or doctor's office, part of a slate of reimbursement rule changes that affect outpatient procedures.

The agency says it will create two reimbursement categories for products like Grafix: One for high-cost items and one for low-cost items. Osiris said Grafix should be included in the high-cost category.

The changes won't take effect until 2015, and Osiris said the status of Grafix shouldn't be changed until late that year.

Columbia, Md.-based Osiris' Grafix has been on the market since 2010. Osiris says it is primarily used in inpatient procedures, meaning in a hospital.