Just as stem cell company Osiris Therapeutics Inc. filed for an $80 million initial public offering, tissue regeneration company BioMimetic Therapeutics Inc. priced its IPO for $36.8 million, selling 4.6 million shares.

Franklin, Tenn.-based BioMimetic sold the shares at $8 apiece. The company was seeking $50 million when it filed for the IPO in February. (See BioWorld Today, Feb. 13, 2006.)

The stock (NASDAQ:BMTI) moved up Friday, closing at $8.25.

New York-based Deutsche Bank Securities Inc. is acting as the sole book-running manager, while Pacific Growth Equities LLC, of San Francisco, is the co-lead manager, and New York-based First Albany Capital Inc. and St. Louis-based A.G. Edwards & Sons Inc. are co-managers. They have an overallotment option for an additional 690,000 shares.

BioMimetic's SEC filing stated that net proceeds will be divided as following: $20 million for research and development; $7 million for general corporate purposes; $3 million to commercialize its lead product, GEM 21S, including building manufacturing capabilities; and $1 million to license additional molecules and matrix materials.

BioMimetic's products combine recombinant protein therapeutics with tissue specific scaffolds to stimulate tissue healing and regeneration.

The FDA approved GEM 21S (Growth-factor Enhanced Matrix) in November as a grafting material for bone and periodontal regeneration. It combines recombinant human platelet-derived growth factor (rhPDGF-BB) with a synthetic bone matrix, beta-tricalcium phosphate.

BioMimetic's pipeline candidates also incorporate rhPDGF in combination with a bone matrix. GEM OS1 is in pilot clinical trials for fracture repair and bone fusions. At the preclinical stage is GEM OS2 being studied for the non-surgical treatment of fractures, and for stimulation of bone formation at sites of risk for fracture.

BioMimetic was first incorporated in April 1999. It has 15.6 million shares outstanding following the IPO.

Osiris Files To Raise $80M

Although the exact number of shares to be offered and the price range is not yet known, Baltimore-based Osiris Therapeutics filed for an IPO, hoping to raise $80 million.

According to the company's prospectus, it will use net proceeds to conduct Phase III trials of Prochymal to treat graft-vs.-host disease (GvHD) and Chondrogen for the regeneration of meniscus, assuming the latter successfully completes its ongoing Phase I/II trial.

Funds also would support other research and development activities, and they would allow the company to repay early the principal and interest on a promissory note that matures on Nov. 28, 2008. The company can prepay the full $20.6 million of principal outstanding, and the 6 percent per annum accrued interest, without penalty. Any remaining proceeds would go toward general corporate purposes.

Osiris is focused on products for inflammatory, orthopedic and cardiovascular conditions. It has one marketed product, Osteocel, for regenerating bone in orthopedic indications, and three drug candidates in clinical development, all of which use human mesenchymal stem cells (MSCs) that are derived from the adult bone marrow of volunteer donors.

MSCs can differentiate into various connective tissues, such as bone, muscle, fat, tendon, ligament, cartilage and bone marrow stroma, whereas hematopoietic stem cells - which also exist in adult bone marrow - only differentiate into blood cells and are limited to hematological disorders.

Osiris is able to grow MSCs to produce up to 5,000 treatments from a single bone marrow donation. The company believes, based on clinical experience, that its treatments are not rejected by patient immune systems, unlike other stem cell therapies, and do not require matching. Osiris' drug candidates can be stored frozen and are readily available to treat patients.

Founded in 1993 based on discoveries made at Case Western Reserve University in Cleveland, Osiris' lead clinical product, Prochymal, is entering a pivotal Phase III trial to treat steroid refractory GvHD. It is the first stem cell therapeutic to receive fast-track and orphan drug designations from the FDA.

Osiris also is enrolling a Phase II trial of Prochymal as an add-on therapy to steroids for the first-line treatment of acute GvHD, and a Phase II trial of the drug to treat Crohn's disease.

A second clinical product, Chondrogen, is in a Phase I/II trial that recently completed enrollment for the regeneration of meniscus, cartilage in the knee joint. Phase I enrollment for Osiris' third product, Provacel, also was recently completed in a trial to test its ability to repair heart muscle in patients who have suffered a heart attack.

Osiris launched its marketed product, Osteocel, in July 2005, and it has been used in more than 1,100 surgical procedures to date. The product consists of a matrix of cancellous bone containing MSCs, and can replace the need for autograft.

The company's principal stockholders are Chairman Peter Friedli, who prior to the IPO owns more than 50 percent of the outstanding common stock; Zurich, Switzerland-based Venturetec Inc.; and certain executive officers and directors of the company, including Randal Mills, Harry Carmitchel, Cary Claiborne and Felix Gutzwiller.

As of April 19, Osiris had 36.7 million shares outstanding. Its net loss for 2005 was $20 million.

Deutsche Bank is serving as the sole book-running manager for the IPO. Osiris' shares would trade on Nasdaq under the symbol "OSIR."

In other financing news:

ChondroGene Ltd., of Toronto, entered a bought-deal private placement agreement involving 12.5 million common shares to be sold at $1.60 each, raising the company C$20 million (US$18 million) gross. Westwind Partners Inc. is purchasing the shares through a syndicate, which has the option to buy up to an additional 3.125 million common shares at the issue price. If exercised in full, ChondroGene would receive another $5 million in gross proceeds. The company plans to use net proceeds to fund development and commercialization of its lead product, ColonSentry, a blood test for the detection of precancerous polyps and colon cancer.