Osiris Therapeutics Makes Significant Revenue Gains in Q2

Osiris Therapeutics Inc., a cellular regenerative medicine company focused products to treat conditions in wound care, orthopedics and sports medicine, has reported its financial results for the second quarter of 2015.

The company increased product revenue for the quarter to $23.7 million, a 78 percent increase over Q2 2014 and a 13 percent increase over previous quarter. The firm also reported increased coverage for Grafix, a cryopreserved placental membrane for wound allografts, to 123 million lives, an increase of 25 million lives compared to the previous quarter. Osiris completed the quarter with after-tax income from operations of $1.2 million or 3 cents per share, with $103 million in total assets.

We remain laser-focused on growing revenue and investing in our leading brands,” said Lode Debrabandere, Ph.D., president and CEO of Osiris. “Despite the expiration of pass-through status for Grafix in early January, the wound care business continues to grow revenue by double-digits. The team has made tremendous progress in opening more accounts and increasing the number of patients treated with Grafix.”

Product revenues during the second quarter of 2015 were $23.7 million, compared to $13.3 million during the second quarter of 2014, an increase of 78 percent. Gross margin during the second quarter remained the same as the second quarter of 2014 at 78 percent. Gross profit was $18.5 million during the second quarter of 2015 and $10.4 million during the same period of 2014. The net income from continuing operations was $1.2 million in the second quarter of 2015 after recognizing income taxes of $400,000. Research and development expenses for the second quarter of 2015 were $2.3 million, increased from the $1.1 million incurred in the second quarter of 2014. As a result of increased commercial activity, Osiris’ selling, general and administrative expenses were $14.5 million for the second quarter of 2015, compared to $9.4 million for the same period of the prior year.

For the quarter, the company also reported publishing seven peer-reviewed manuscripts, including data on a prospective study of Grafix in chronic venous ulcers. It initiated preparations for a Phase III confirmatory study in venous ulcers with the goal to prepare a supplemental U.S. Food and Drug Association Biologic License Application for that indication;