Osiris stem cell line sale OK'd

A Massachusetts company, Blackstone Medical Inc., filed paperwork late Wednesday in Springfield U.S. District Court, seeking a temporary restraining order and preliminary injunction to stop the sale. But their requests were denied by a federal judge, giving Osiris the green light to hold its shareholder meeting.

Blackstone, which specializes in spinal surgery products, has a three-year-old deal with Osiris to distribute its bone-regeneration treatment, Osteocel. The company claims the sale violates its distribution deal. A spokesman for Blackstone's parent, Orthofix International NV, declined to comment yesterday.

Founded in 1992

Osiris was founded in 1992 and went public in 2006. Its stem cell treatment Prochymal is being tested in late-stage clinical trials as a treatment for a type of Crohn's disease, which is characterized by chronic intestinal inflammation.

Prochymal also is in clinical tests as a therapy for two types of graft versus host disease, a deadly complication affecting about half of those who receive bone marrow transplants each year. Mills estimates that Prochymal could turn the company, which has yet to turn a profit, into a "multibillion business."

Osiris stock closed up 3 cents to $14.81 on the Nasdaq yesterday.

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