Summary
- While Osiris Therapeutics has appreciated 40% this year to $19, it is still undervalued.
- We forecast sales to rise greater than 20% in 2019, after a 20% advance in 2018 during which sales accelerated in each quarter, led by growth in Grafix wound care.
- Over the next year, we see a further widening of gross margin after the FDA approves Mesoblast's MSC-100 for aGVHD that triggers milestone payment and royalties to OSIR.
- Smith & Nephew's $19 buyout price of OSIR is inadequate.
Investment Thesis
While Osiris Therapeutics (NASDAQ:OSIR) has appreciated 40% during the calendar year 2019, it is still significantly undervalued. The company's sales growth and earnings growth have been accelerating due to OSIR's increasing market success with its impactful suite of medical solutions that improve lives and hold down health care costs.
Business Summary
OSIR is a world leader in regenerative medicine that creates and delivers solutions for complex wound healing, orthopedics, sports medicine, and Acute Graft Versus Host Disease (aGVHD).
