A subsidiary of Australian company
Prochymal is being evaluated in a final round of clinical trials for use in treating Crohn's disease as well as a disorder known as graft-versus-host disease, which can occur after stem cell or bone marrow transplants. Osiris was founded in 1992 to develop stem-cell therapies that can be used to stop inflammation and regenerate tissue.
The deal would mean Osiris moving on from what has been its key project for more than 20 years. Company officials said the sale allows them to focus on other projects with potential.
"With this transaction, we will focus our business on those areas that are of greatest commercial value to Osiris moving forward," Osiris Chairman
Other projects the company is working on include Chondrogen and Osteocel-XC, both drugs that stimulate bone regeneration.
Company officials were not available for comment Friday.
Osiris broke ground in the global stem-cell research field in
Prochymal is made from adult stem cells, and while it was approved for marketing toward patients with the rare graft-versus-host disease, Osiris also has clinical trials underway testing the drug on patients with cardiac disease and Type 1 diabetes.
The company moved to
Shares of Osiris, traded on the Nasdaq under the symbol OSIR, closed up 5 percent at
Osiris will receive
The sale is expected to close in the fourth quarter of this year.
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