U.S. Markets close in 4 hrs 32 mins

Osiris shares rocket, company details Grafix study

The Associated Press

Osiris Therapeutics Inc. shares hit their highest price in more than six years Tuesday after the stem cell therapy developer said its wound treatment Grafix showed "overwhelming" effectiveness when used on chronic diabetic foot ulcers.

THE SPARK: The Columbia, Md., company said an early analysis of study data showed that 62 percent of patients receiving Grafix had complete wound closure, compared to only 21 percent of those who received the standard of care. Osiris also said Grafix demonstrated faster wound closure and a reduction in the number of treatments to achieve wound closure.

THE BACKGROUND: Grafix is a flexible membrane that contains living stem cells and is used to treat chronic and acute wounds. Osiris was conducting the study to gain more data on safety and effectiveness, because it wants to expand Medicare and insurance coverage of its product.

The standard of care for foot ulcers involves relieving pressure on the wound and cutting away dead or damaged tissue, plus surgical dressing changes that progress from wet to dry over time.

SHARE ACTION: The stock price more than doubled, rising $12.29, to $22.95 in afternoon trading.

Earlier in the session, the stock reached $24.78, its highest price since February 2007, according to FactSet.