Osiris Therapeutics third quarter revenues decrease marginally to $10.6 million

Osiris TherapeuticsNov 4 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 third quarter ended September 30, 2011.

“We are pleased with the continued revenue growth of our Biosurgery products”

Highlights and Recent Developments

• Filed a complete response to inquiries from the Biologics and Genetic Therapies Directorate of Health Canada about Prochymal New Drug Submission (NDS) and post marketing commitments.
• Third quarter Biosurgery revenue increased more than 150% over the previous quarter.
• Reported net income of $4.0 million for the quarter; $0.12 per diluted common share.
• Reported cash, receivables and short-term investments of $53.3 million as of September 30, 2011.

"We are pleased with the continued revenue growth of our Biosurgery products," said C. Randal Mills, Ph.D., President and Chief Executive Officer of Osiris Therapeutics. "Sales and marketing efforts are currently underway to drive widespread adoption of these remarkable products in a number of therapeutic areas. As always, our commitment to patients with serious unmet medical needs is a top priority and we remain focused on making life-altering therapies available to the patients that need them most. "

Third Quarter Financial Results

Net income for the third quarter of 2011 was $4.0 million compared to $4.5 million in the third quarter of 2010. Revenues were $10.6 million in the third quarter of 2011, consisting primarily of the amortization of license fees from our collaboration agreements. Revenues in the third quarter of 2010 were $10.8 million. As of September 30, 2011, Osiris had $53.3 million of cash, receivables and short-term investments.

Research and development expenses for the third quarter of 2011 were $5.0 million, compared to $5.5 million incurred in the third quarter of 2010. General and administrative expenses were $1.4 million for the third quarter of 2011 compared to $1.3 million for the same period of the prior year. Net cash used in operations for the three months ended September 30, 2011 was $4.4 million.