Osiris Therapeutics [OSIR] won a potential $224.7 million contract from the Defense Department for the development and possible purchase of Prochymal, an adult stem cell therapy, for the repair of gastrointestinal injury resulting from radiation exposure. Initially Osiris will receive $4.2 million this year to continue development of Prochymal for acute radiation syndrome (ARS). Once the Food and Drug Administration (FDA) approves the drug for ARS, the contract provides for the purchase of up to 20,000 doses, at $10,000 per dose, of Prochymal in four 5,000 dose increments. In addition to the DoD market, Osiris believes Prochymal has potential to meet U.S. and international demand for a treatment of ARS for civilian populations. Cleveland BioLabs, Inc. [CBLI], which was a losing bidder for the DoD contract, says it was surprised by the decision. The company says it will continue developing its drug, CBLB502 and seek FDA approval next year to treat ARS.
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