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Tuesday, July 25, 2006

Stem Cell IPO Next Week: Osiris Therapeutics

Next week we have Osiris Therapeutics (OSIR) coming public via an IPO, and this will be the first pure-play IPO in the STEM CELL arena in years. Osiris was founded in 1992. It even filed to come public back in 1997, but had to withdraw its IPO in 1998.

The pricing range is $11.00 to $13.00 for an estimated 3.5 million shares, and this will represent about 13% of the float (NOT an exact number) based on the last information. Jefferies, Lazard Capital Markets, and Leerink Swann are the underwriters. It looks like the company said it will have 36.6 million shares outstanding.

The company in 2005 lost $19.995 million on revenues of approximately $957,000.00; the company also ended last year with $43.3 million cash and equivalents, $47.7 million long-term debt, $64 million in mandatory redeemable convertible preferred stock, an accumulated deficit of $142 million and total stockholder equity Deficit of $73.6 million.

It derives its stem cells from adult bone marrow and they believe that they will have Universal Compatibility. They also claim to be able to grow up to 5,000 treatments from a single bone marrow donation. Osiris also claims their stem cells can be stored frozen at the point of care instead of requiring the weeks of preparation other treatments require.

We’ll have to see how successful the IPO is, but with the controversy in stem cells you can imagine this will garner a lot of media attention.

Jon C. Ogg
July 25, 2006

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