On October 12, 2013 Regenerative medicine company Mesoblast Ltd. (ASX:MSB; Pink:MBLTY) reported the company acquired the mesenchymal stem cell (MSC) business of Osiris Therapeutics Inc. (NASDAQ:OSIR). Osiris received $20 million in cash up front and $15 million in Mesoblast stock and will receive $15 million in cash in six months. Osiris also is eligible for up to $50 million in clinical and regulatory milestones and up to 10% royalties.

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The deal includes Prochymal resmestemcel-L, an IV formulation of MSCs that has conditional approval in Canada and New Zealand to treat children with acute graft-versus-host disease (GvHD). Both approvals require a confirmatory trial. The product, which also is in Phase III testing for Crohn’s disease, is available in the U.S. under an expanded access program for both children and adults. Mesoblast said it plans to seek FDA approval of Prochymal in acute GvHD but did not disclose a timeline.

(Press release, Mesoblast, OCT 12, 2013, View Source [SID1234670328])