On May 8, 2008 Osiris Therapeutics reported the company agreed to sell its Osteocel business to medical device maker NuVasive Inc for $85 million, including potential milestone payments, sending its shares up 15 percent. NuVasive will buy the business for $35 million in cash, and additional milestone-based payments of up to $50 million in either cash or a combination of cash and stock.

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Osteocel is a bone matrix product that preserves the native stem cell population that resides in marrow-rich bone, and is intended for use in orthopedic indications for bone regeneration.

Osiris also said it agreed to process and supply NuVasive with Osteocel for up to 18 months. In a separate statement, NuVasive said it expects the deal to be dilutive to its 2008 earnings per share. However, excluding in-process research and development charge, it expects no dilution in either 2008 or 2009. Shares of Osiris rose to $13.49 in trading after the bell. They closed at $11.77 Thursday on Nasdaq. NuVasive shares closed at $38.18.

(Press release, Osiris Therapeutics, MAY 8, 2008, View Source [SID1234670332])