Article: Osiris Therapeutics: Regenerative Technologies And Restated Financials

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Osiris Therapeutics: Regenerative Technologies And Restated Financials

Cannell Capital LLC, 10 November 2016

Investing in oil exploration, gold prospecting and biotechnology is high-risk/high-return speculation. Such plays are about getting rich quick, and high hopes and dreams often attract scallywags – a desirable ingredient in short-selling candidates. We think Osiris Therapeutics, Inc. (“OSIR” – $5.18), a Columbia, Maryland-based trafficker in used human tissue, is flailing and infested with vermin.

December 14, 2015 – OSIR’s auditor, BDO USA, resigns in the wake of questions about OSIR’s accounting and business practices.[1] As of November 8, 2016, Osiris had yet to file its financial results for the year 2015 or for any quarter in 2016.

March 15, 2016 – Unable to file its Form 10-K, OSIR files the esoteric mea culpa Form 10-NT instead.[2] In its last timely filed Form 10-Q [3] (August 10, 2015), the company reported 47% year-over-year sales growth that yielded a 121 days sales outstanding and 232 days in inventory! Amongst the reasons for the inflated receivables was a one-year extension of payment terms which were expected to come due in the end of 2015. It remains unclear whether these payments were ever collected.

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