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What: Shares of Osiris Therapeutics (NASDAQOTH:OSIR) are trading 11% higher today in what appears to be a delayed reaction to the company's Monday-night release of its first-quarter earnings.
So what: Osiris' first quarter resulted in $10.1 million in revenue -- 146% higher than the year-ago quarter and 25% higher than the fourth quarter -- and a loss of $0.02 per share. Both results topped Wall Street's expectations, which had been for $9 million in revenue and a loss of $0.08 per share. The company is now fully engaged in commercializing and marketing Grafix, a wound-repair membrane, and as a result its administrative and sales expenses grew to $7.2 million, from $2.4 million a year ago.
Now what: Osiris is certainly making progress back toward profitability, which it left behind (on an adjusted basis) in 2012, but it may take time for its new marketing push to pay off on the bottom line. But the company's shares have yet to reclaim the levels they shot to after Osiris' strong Phase 3 test results last year, which could mean that investors who have taken money off the table could be missing out on what is, by Fool health-care specialist Keith Speights' calculations, a $2-billion-plus market opportunity. Grafix is only covered by Medicare in nine states so far, which means that there could be quite a bit more upside to Grafix's revenue as Osiris obtains coverage in more states.
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