(Reuters) - Shares of Osiris Therapeutics Inc rose 15 percent on Wednesday, after U.S. health regulators said the stem-cell technology company’s wound treatment was eligible for reimbursement when used in hospitals in out-patient settings or in ambulances.
The Center for Medicare & Medicaid Services also cleared the pathway for a permanent reimbursement code for Grafix, Osiris’s wound-care matrix containing stem cells, on Tuesday.
A permanent code makes reimbursement for the treatment faster and easier, thus increasing the chances of a physician prescribing it.
Osiris said if the permanent reimbursement code for Grafix was approved, it could become effective from January next year.
First-quarter revenue from the company’s biosurgery products - Grafix and a bone matrix product called Ovation - have risen about 50 percent to $1.14 million.
Shares of the Columbia, Maryland-based company were trading up 8 percent at $6.98 Wednesday morning on the Nasdaq. They jumped to $7.49 earlier in the session.
(Reporting by Vidya P L Nathan in Bangalore; Editing by Don Sebastian)
This story was corrected in paragraph 2 to say the regulator was Center for Medicare & Medicaid Services, not the U.S. FDA