Osiris Therapeutics rises on $225 million DoD contract
Shares of Osiris Therapeutics Inc. (Nasdaq: OSIR) are rising following news after the close on Thursday that the stem cell therapeutic company has been awarded a $224.7 million contract from the U.S. Defense Department.
The contract is to develop and stockpile an adult stem cell therapy called Prochymal, which is intended to heal gastrointestinal injury resulting from radiation exposure. The deal calls for the purchase of up to 20,000 doses, at $10,000 per dose, upon the receipt of approval from the U.S. Food and Drug Administration.
“We are honored that the Department of Defense has selected Prochymal in this critical effort to better safeguard our armed forces against the potentially horrendous effects of battlefield exposure to a radiological weapon,” said president and CEO C. Randal Mills in a statement.
The small cap was not immediately available for comment.
Columbia, Md.-based Osiris is also currently conducting clinical trials on Prochymal for the treatment of type 1 diabetes and Graft vs. Host Disease, a common complication following bone marrow transplantation.
At 3:02 p.m. ET shares of Osiris Therapeutics Inc. (OSIR) had gained $1.40, or 11%, to $13.97. The 52-week high of $29.29 was reached on Jan. 16, 2007, while the 52-week low of $9.98 was set on Nov. 26, 2007.
