Osiris Therapeutics Inc.’s (OSIR) shares, which were up 25.1% immediately after the company reported third quarter results, were down 9.3% in the following trading session. Overall, shares are up 20.9% since the release of third quarter results. Osiris’ third quarter results were better-than-expected with the company reporting break-even earnings, well above the Zacks Consensus Estimate of a loss of 9 cents 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 well above the year-ago quarter revenues of $2.2 million.
Research and development (R&D) expenses declined 25.3% from the year-ago period to $0.9 million. The company intends to study Grafix for the treatment of venous leg ulcers.
Selling, general and administrative expenses increased to $4 million from $0.7 million in the year-ago period due to higher commercial activities.
Meanwhile, in early Oct 2013, Osiris sold its culture-expanded mesenchymal stem cell (ceMSC) business including Prochymal (for up to $100 million) to a wholly-owned subsidiary of Mesoblast Limited. Osiris will be entitled to royalty payments as well.
Osiris also stated that the FDA does not require the company to file a biologic license application (:BLA) for Grafix to remain on the market. However, the company intends to submit a BLA for enhanced label claims in the next 12-18 months.
Osiris intends to continue investing in its sales force and expects to have about 50 sales reps promoting Grafix within the next 6 months.
Osiris is a Zacks Rank #4 (Sell) stock. At present, companies like Actelion Ltd. (ALIOF), AMAG Pharmaceuticals, Inc. (AMAG) and Isis Pharmaceuticals, Inc. (ISIS) look well-positioned with all three carrying a Zacks Rank #1 (Strong Buy).