View Full Version : Osiris Being Investigated for Securities Laws Violations

06-18-2009, 09:23 AM
Has anybody seen anything on this?

Kaplan Fox Investigates
Osiris Therapeutics, Inc. - Kaplan Fox Investigates Possible Securities Laws Violations

New York ? April 3, 2009 ? Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating Osiris Therapeutics, Inc. (?Osiris? or the ?Company?) (NasdaqGM: OSIR) for potential violations of the federal securities laws.

In January 2007, Osiris received Fast Track designation from the U.S. Food and Drug Administration, expediting the development of a stem cell treatment for Crohn?s Disease that does not respond to standard therapies. The Phase III study commenced in May 2007.

On March 27, 2009 before the market opened, Osiris announced that it had elected to end enrollment in its Phase III trial evaluating Prochymal for Crohn?s disease, which by that point had enrolled 210 of the targeted 270 patients, due to a ?design flaw in the trial resulting in significantly higher than expected placebo response rates.? Osiris described the design flaw as follows:

The potential trial design flaw may be related to the fact that patients responding to the initial therapy were eligible to participate in a second, longer-term trial evaluating Prochymal as a maintenance therapy. Because the current standard for determining response of Crohn?s patients to therapy is largely subjective, there may have been a bias to meet the eligibility requirements for continuation of therapy in the longer-term maintenance trial.

Also on March 27, Osiris held a conference call with investors. In response to a question requesting ?help? in understanding the design flaw, CEO Randy Mills stated that ?the actual design flaw came in that these patients even if they weren?t . . . feeling better, basically we gave them incentive to say they were feeling better because they would then have an opportunity to get drug in the maintenance trial.?

On March 27, 2009, the day of the announcement, Osiris?s common stock declined by more than 21% on heavier than usual volume.

This case may affect purchasers of securities as early as January 2007. If you purchased Osiris?s publicly traded securities and would like to discuss our investigation, please e-mail us at mail@kaplanfox.com or contact:

Frederic S. Fox

Joel B. Strauss

Donald R. Hall

Jeffrey P. Campisi

Pamela A. Mayer


850 Third Avenue, 14th Floor

New York, New York 10022

(800) 290-1952

(212) 687-1980

Fax: (212) 687-7714

E-mail address: mail@kaplanfox.com

Laurence D. King


350 Sansome Street, Suite 400

San Francisco, California 94104

(415) 772-4700

Fax: (415) 772-4707

E-mail address: mail@kaplanfox.com

06-18-2009, 11:35 AM
Thanks for posting this. I knew there was something strange going on from some odd e-mails I received as well as the sudden cut off for the Crohn's trial. I hate to see Osiris tangled up in something like this as it will undoubtedly delay things, but if they want to play the game, they have to abide by the rules here in the U.S. just like any other company.