Osiris Therapeutics Q1 Loss Narrower-Than-Expected - Analyst Blog
May 13 2014 - 9:00AM
Zacks
Osiris Therapeutics Inc.’s (OSIR) first quarter
2014 loss was 2 cents per share, a penny wider than the year-ago
loss of 1 cent per share. However, first quarter 2014 loss was
narrower than the Zacks Consensus Estimate of a loss of 8 cents per
share.
Revenues for the quarter came in at $10.1 million, surpassing
the Zacks Consensus Estimate of $9 million and increasing 146% from
the year-ago quarter. Revenues increased 25% sequentially
reflecting higher volume. Osiris Therapeutics reported sales growth
for Grafix as well as Ovation.
Quarterly Details
Research and development (R&D) expenses declined to $0.7
million from $0.9 million in the year-ago period. Lower expenses
reflect the completion of the Protocol 302 study which was
conducted to evaluate the efficacy of Grafix for the treatment of
diabetic foot ulcers compared to the standard of care. Going
forward, R&D spend will increase as the company conducts
additional studies on Grafix.
Selling, general and administrative expenses increased to $7.2
million from $2.4 million in the year-ago period reflecting
investment in commercial activities. The company has increased its
sales force significantly for the promotion of Grafix.
Osiris Therapeutics received a cash payment of $15 million from
Mesoblast related to Prochymal. This marks the third milestone for
Osiris Therapeutics under its agreement with Mesoblast. As a
reminder, last October, Osiris Therapeutics had 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 Therapeutics will be entitled to royalty
payments as well.
Osiris Therapeutics is a Zacks Rank #3 (Hold) stock. Some
better-ranked stocks in the health care sector include companies
like Gilead Sciences Inc. (GILD), Alexion
Pharmaceuticals, Inc. (ALXN), and Affymetrix
Inc. (AFFX) – while Gilead is a Zacks Rank #1 (Strong Buy)
stock, Alexion and Affymetrix are Zacks Rank #2 (Buy) stocks.
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