Osiris shares soar on $1.38B Genzyme pact

Shares of Osiris Therapeutics rocketed up 26 percent after the developer announced that Genzyme had agreed to pay up to $1.38 billion to develop two adult stem cell therapies. Columbia, MD-based Osiris gets $130 million up front and the rest in development, regulatory and sales milestones. Genzyme in turn gets marketing rights outside of the U.S. and Canada.

The development pact covers Prochymal and Chondrogen. Prochymal is currently being studied in two Phase III trials for graft vs. host disease and one Phase III trial for Crohn's disease; data from all three trials are expected in 2009. It is also being studied in Phase II trials for type 1 diabetes and chronic obstructive pulmonary disease. A Phase II trial of Prochymal for acute myocardial infarction and a phase II/III trial of Chondrogen for osteoarthritis of the knee are expected to begin soon. Osiris is responsible for the clinical development costs for all ongoing trials, as well as future trials for additional indications through completion of Phase II development. Osiris and Genzyme will share the cost of future Phase III and IV clinical trials, with a 60 percent Osiris/40 percent Genzyme split.

"Today Genzyme and Osiris have forged a powerful partnership in the emerging field of stem cell therapy," said C. Randal Mills, Ph.D., president and CEO of Osiris. "This relationship greatly enhances our ability to effectively introduce this groundbreaking technology on a global basis."

- check out the Genzyme's release
- read the Boston Globe report

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