Osiris ends second quarter with $28.6 million cash, short-term investments

By Elaine Rigoli

Tampa, Fla., Sept. 15 - Osiris Therapeutics, Inc. ended its second quarter with $0.8 million in cash and $27.8 million in short-term investments - and noted it had drawn $5.0 million of the $50.0 million line of credit available for the development of Provacel under a loan agreement with Boston Scientific.

Net cash used in operating activities was $13.5 million for the six months ended June 30, primarily reflecting a net loss of $16.7 million, partially offset by $1.7 million in favorable working capital, $0.8 million in non-cash interest and stock-based compensation expense and $0.7 million in depreciation and amortization, according to a 10-Q filing with the Securities and Exchange Commission.

By comparison, net cash used for operating activities was $6.5 million for the six months ended June 30, 2005. Net cash used in operating activities for 2005 primarily reflects its net loss of $7.3 million, partially offset by $0.9 million in non-cash interest expense.

Net cash provided by investing activities was $14.3 million for the six months ended June 30 including cash flows from the sale of $15.0 million of short-term investments.

The company's long term debt included $42.3 million of convertible promissory notes due 2008. Since June 30, upon closing of its initial public offering, approximately $21.8 million of the convertible promissory notes, together with accrued interest of approximately $2.0 million, converted into shares of company common stock.

The remaining $20.6 million is a convertible promissory note issued to a foreign investor in 2005, which bears interest at a 6% per annum and has redemption premiums that start at 9% and increase over time to 27%.

The Baltimore stem-cell technology company said it may seek additional funding - prior to becoming cash-flow positive on an operational basis - through public or private financings or some combination of them. Additionally, the company said it might seek funding through collaborative arrangements if determined to be necessary or appropriate.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.