Osiris Therapeutics (NASDAQ:OSIR) Confirms Sanofi Prochymal Development Program
Osiris has notified Sanofi that it is treating Sanofi’s quarterly statement as an intention to terminate the development agreement of Prochymal, a mesenchymal stem cell being evaluated for graft-versus-host disease (GvHD).
As we reported on our blog, 2/9/12 … http://www.scimitarequity.com/blog/2012/02/09/osiris-osir-drops-after-sanofi-discontinues-p3-gvhd-program … the confirmation was triggered by Sanofi’s R&D update in its Q4/11 press release: Osiris (OSIR) drops after Sanofi discontinues P3 GvHD Program: .http://www.scimitarequity.com/blog/2012/02/09/osiris-osir-drops-after-sanofi-discontinues-p3-gvhd-program . “The Bottom Line: This is not a positive for the Regenerative Medicine although … some believes that if Sanofi pulls out of 1 indication, they pull out of them all. However, it could be positive if OSIR receives … back … full rights to Prochymal. OSIR working to prepare BLA filing for Prochymal in US is developing Prochymal in refractory Crohn’s disease; acute heart attack … success in these endeavors will validate OSIR and the sector”.
The Bottom Line: According to OSIR, all rights to Prochymal will return to … Osiris … without the company being … required to compensate Sanofi. OSIR can now pursue commercialization agreements for Prochymal with other parties. Sanofi, had discontinued the Osiris’ Prochymal development … without its knowledge or advice. It is good to be early on the call and … wasn’t wrong and I also believe it will be a positive.