Osiris receives $5M milestone

Osiris Therapeutics says it has received a $5.0-million milestone payment for reaching the first production threshold of the Osteocel  supply agreement with NuVasive. In July of 2008, Osiris announced the  sale of the Osteocel business to NuVasive for an initial payment of  $35.0 million, followed by up to $50.0 million in additional  milestones. Osiris expects to achieve the remaining $45.0 million from  NuVasive, including $17.5 million for further delivery of product, $12.5  million upon transfer of certain manufacturing assets and a $15.0  million payment upon the latter's achievement of $35.0 million in  cumulative Osteocel sales. The core of the Osteocel business is a  proprietary adult stem-cell bone graft product.

Noting that the firm is "solidly on track to hit the remaining  milestones," Richard Hunt, chief financial officer of Osiris, said:  "with more than 15 years of rigorous stem cell research and development  behind it, today Osteocel stands alone in orthopedics. Along with our  excellent partners at NuVasive, we look forward to the product's  continued success."