Osiris Therapeutics Inc. (OSIR)

[surf1944]

8:33AM Osiris Therapeutics announces receipt of $15 mln milestone payment for Prochymal (OSIR) : Co announces that it has received a $15 mln milestone payment from Mesoblast for successful completion of the transfer of assets relating to the Prochymal business. In Oct 2013, OSIR announced an agreement with a wholly-owned subsidiary of Mesoblast Limited for the acquisition of OSIRs' culture-expanded mesenchymal stem cell business, including Prochymal, in a transaction worth up to $100 mln in initial consideration and milestone payments as well as future royalties. The milestone that was achieved was in consideration of transition and delivery of the major assets related to its ceMSC business. The payment was made in Mesoblast equity with customary downside protection after the 12-month holding period. OSIR continues to provide services to Mesoblast as part of the agreement to ensure a smooth transition. As a result of the transaction, OSIR expects to report a profit for the fourth quarter 2013 and full fiscal year.