Osiris Therapeutics has been awarded a $224.7 million contract, including purchase options, from the U.S. Department of Defense (DoD) to develop and stockpile Prochymal, an adult stem cell therapy for the repair of gastrointestinal injury resulting from radiation exposure.
Under the terms of the contract, the DoD will provide funding to Osiris for the development of Prochymal for acute radiation syndrome (ARS) in two stages, with an initial amount of $4.2 million in 2008, according to the Columbia, Md.-based company.
If the FDA approves 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, Osiris said.
Osiris and Genzyme recently signed an agreement to jointly develop Prochymal for use by U.S. and allied nations for emergency preparedness. The DoD decision to fund Prochymal marks the first award under the new partnership, Osiris said.