OSIR-Maryland-based biotechnology firm working on treatments for conditions as varied as Crohn’s disease, knee arthritis, tissue damage, life-threatening Graft-versus-host disease and acute radiation syndrome.
Osiris Therapeutics, Inc. (OSIR) creates therapeutic drugs from human mesenchymal stem cells (MSCs) retrieved from bone marrow donated by healthy adult volunteers.
Bone regeneration = big bucks
Earlier this month, Osiris announced the sale of its Osteocel unit to NuVasive for $85 million.
Osteocel promotes bone regeneration and is used in spinal fusion and other orthopedic procedures.
This deal provides Osiris with the money and ability to focus on the next generation of revolutionary products… products like Chondrogen, which works on the regeneration of knee cartilage, and the multi-purpose Prochymal.
The incredible potential of Prochymal
The most exciting biologic drug in Osiris’ repertoire is Prochymal. Designed to reverse cellular damage, its applications seem limitless.
The most vaunted use is as a treatment for Graft-versus-host disease. Early testing was credited with saving the lives of seven of twelve children in the advanced critical stages of the disease. As a result, the drug is currently in a Phase III trial and has been granted Fast Track status by the FDA.
If all goes as well as anticipated,Prochrymal would be the first approved stem cell therapy in the world.
But it does’t end there…
The positive effects of Prochymal on the gastrointenstinal symptoms of graft-versus-host disease revealed additional prospects.
Osiris has begun a Phase III program using the drug in the treatment of Crohn’s Disease.
Prochymal has also shown results in the repair of heart tissue following a heart attack. In March, Phase I trial results showed patients receiving the drug had markedly less cardiac arrythmias as well as significant improvements in heart and lung function.
The Department of Defense has bought into this technology
In January, Osiris, partnered with Genzyme, was awarded a $224.7 million contract by the Department of Defense to develop and stockpile Prochymal for the treatment of gastrointestinal injury resulting from acute radiation syndrome.
This opens the company up to a whole new client sector.
Like many research-focused biotechs, Osiris operates at a net loss. For the first quarter of 2008, the loss amounted to $15.6 million – that’s up from $11.5 million the year prior.
The main reason for this increase is the additional research and testing involving Prochymal.
The first-quarter report listed an available cash flow of $42 million and a credit line of $30 million through its primary backer, Friedli Corporate Finance.
A sound investment
Some estimate that the market for stem cell therapy to be around $20 billion by 2010.
Besides the opportunities presented by Prochymal, Osiris has 47 patents for their cutting-edge technology in the U.S. and over 200 foreign patents owned or licensed.
