Osiris Therapeutics Inc Announces Agreement For Sale Of Culture-Expanded MSCs Including Prochymal Worth Up To $100 Million Plus Royalties To Mesoblast Ltd's Subsidiary


Thursday, 10 Oct 2013 07:12pm EDT 

Osiris Therapeutics Inc announced that it has entered into an agreement with a wholly owned subsidiary of Mesoblast Ltd for the sale of Osiris' culture-expanded mesenchymal stem cell (ceMSC) business, including Prochymal, in a transaction worth up to $100 million in initial consideration and milestone payments. Additionally, Osiris will receive royalty payments on sales of Prochymal and other products utilizing the acquired ceMSC technology. Summary of the Transaction: Mesoblast has acquired the assets related to Osiris` ceMSC business; Osiris will receive $50 million in consideration for closing and delivery of its ceMSC assets; Osiris is eligible to receive up to an additional $50 million in payments upon Mesoblast achieving certain clinical and regulatory milestones; Mesoblast will assume all future development costs for the ceMSC business; Osiris will receive single to low double-digit royalties on product sales derived from the ceMSC technology; Osiris and Mesoblast have entered into a separate services agreement for continued product advancement and to ensure a seamless transition; Osiris has retained a license to all transferred intellectual property necessary to run its other businesses; and For Osiris, the transaction results in pro forma cash, investments and receivables of approximately $82 million. Osiris expects to record the closing and asset transfer consideration of $51 million in the fourth quarter of fiscal 2013. 

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