Osiris and Genzyme Ink Adult Stem Cell pact (OSIR, GENZ)
Osiris Therapeutics (NASDAQ: OSIR) and Genzyme (NASDAQ: GENZ) have entered into a pact to develop and commercialize what the companies are calling first-in-class adult stem cell products. Osiris was also just mentioned yesterday as one of the many stem cell beneficiaries of the 2008 presidential election.
As part of the deal, Genzyme will pay out cash and will make an up-front payment of $130 million to Osiris. The strategic alliance is for the development and commercialization of Prochymal and Chondrogen. These are two novel late-stage adult stem cell treatments which are believed to hold significant potential to treat a wide range of diseases by controlling inflammation, promoting tissue regeneration, and preventing scar formation.
Under the terms of the agreement, Osiris will commercialize Prochymal and Chondrogen in the United States and Canada, and Genzyme will commercialize the treatments in all other countries from South America to Asia to Europe. On top of the $130 million, Genzyme will potentially make additional significant milestone and royalty payments.
Osiris stock is surging on this one. Shares are up 16% at $18.00 and its 52-week trading range is $9.98 to $20.20. before today’s pop, its market cap was $493 million.
Jon C. Ogg
November 4, 2008