Probio Invest
Healthcare, long/short equity

Osiris Therapeutics' Survival In Doubt After Losing 'Pass-Through' Status In 2015

Osiris (NASDAQ:OSIR) is a stem cell company focused on developing and marketing products in orthopedics, sports medicine and wound care. They currently market and distribute Grafix and Ovation for acute and chronic wounds, Cartiform, a viable cartilage mesh for cartilage repair, and OvationOS, a viable bone matrix for bone growth.

The company reported that product revenue during the first quarter of 2014 was $10.1 million. The gross margin was 78%. However, we believe that both the product revenue and profit margin will take a huge hit in 2015 due to the loss of "Pass-Through" status. According to the new proposal that will be published by the Centers for Medicare & Medicaid Services (CMS) on July 14th, 2014, Grafix...

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