Osiris second quarter revenues increase to $10.4 million

Aug 5 2011

Osiris Therapeutics, Inc. (NASDAQ: OSIR), the leading stem cell company focused on developing and marketing products to treat medical conditions in inflammatory and cardiovascular disease areas and wound healing, announced today its results for the second quarter ended June 30, 2011.

“Osiris continues to make steady progress in both Therapeutics and Biosurgery”

Highlights and Recent Developments

• Received a request from Health Canada for additional information surrounding the New Drug Submission (NDS) for Prochymal as well as questions regarding post marketing commitments.
• Initiated the expansion of the company's commercial infrastructure for our lead products Grafix® and Ovation®.
• Inspected by the U.S. Food and Drug Administration with no deficiencies noted.
• Reported net income of $1.8 million for the quarter; $0.05 per diluted common share.
• Reported cash, receivables and short-term investments of $57.8 million as of June 30, 2011.

"Osiris continues to make steady progress in both Therapeutics and Biosurgery," stated C. Randal Mills, Ph.D., President and Chief Executive Officer of Osiris Therapeutics. "We are starting to build the necessary foundation for the commercial success of our Biosurgery division and continue to work towards our goal of making Prochymal the world's first approved stem cell therapy."

Second Quarter Financial Results

Net income for the second quarter of 2011 was $1.8 million compared to $1.7 million in the second quarter of 2010. Revenues were $10.4 million in the second quarter of 2011, consisting primarily of the amortization of license fees from our collaboration agreements. Revenues in the second quarter of 2010 were $10.3 million. As of June 30, 2011, Osiris had $57.8 million of cash, receivables and short-term investments.

Research and development expenses for the second quarter of 2011 were $5.2 million, compared to $6.5 million incurred in the second quarter of 2010. General and administrative expenses were $3.3 million for the second quarter of 2011 compared to $1.6 million for the same period of the prior year, including a one-time $1.7 million non-cash charge related to the warrant extension approved by our stockholders in May 2011. Net cash used in operations for the three months ended June 30, 2011 was $5.5 million.

Source Osiris Therapeutics, Inc.