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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Article: Amidst Allegations of Financial Misconduct, Osiris CEO Resigns

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Amidst Allegations of Financial Misconduct, Osiris CEO Resigns

Mark Terry, 05 February 2016

Columbia, Md.-based Osiris Therapeutics, Inc. announced that Lode Debrabandere, president and chief executive officer, has resigned for personal reasons. Dwayne Montgomery, currently the company’s chief business officer, will act as interim chief executive officer. Frank Czworka, presently vice president and general manager of wound care, will step up as chief operating officer.

The board of directors will start a search for a permanent chief executive officer and has hired an executive search firm to assist in the process. The company indicates it will consider both internal and external candidates. The company has had some problems lately. The company is currently transitioning from research to a commercial company. A Seeking Alpha report published on Jan. 15 cited several red flags. One was that the company’s chief financial officer, Phil Jacoby, resigned in September, replaced by Gregory Law.
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Article: Osiris Therapeutics counters report questioning sales

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Osiris Therapeutics counters report questioning sales

LORRAINE MIRABELLA, 23 January 2016

Its stock is off two-thirds from its summertime high, its auditor quit and it’s restating earnings. The past few months have not been friendly to Osiris Therapeutics, a Columbia-based company that’s considered one of the state’s most promising biotechnology firms.

Osiris, known for its stem cell-based products, is in the midst of transitioning from a research firm into a commercial enterprise and making strides with products such as Grafix, a human tissue product that treats chronic wounds such as foot ulcers. But after showing much promise, Osiris, which takes its name from the Egyptian god of death and regeneration, faces uncomfortable questions about its recent missteps. Several shareholders have sued and postings on financial advice websites voice continuing doubts about its sales and financial reports.
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