Osiris Therapeutics Inc (NASDAQ:OSIR): An Attractive Turnaround Play

The leading regenerative medicine company Osiris Therapeutics Inc (NASDAQ:OSIR) announced on March 27, 2017 that it had filed an amendment to restate its Annual Report for the year 2014. According to this new information its product revenue for that year was $50.8 million and its net loss was $10 million. These numbers were a little better than expected and the market celebrated it today jumping more than a 20% early in the morning. Will the stock continue this trend? Let's analyze the last developments of the company a little bit more. Well, first, take a look at the bounce today.Past Developments and analysisThese are finally good news for this name, which has seen its share price collapse from $22.54 to $3.50 in less than a year due to accounting concerns. As you may remember, on March 22, 2016 the company communicated to the market that it was changing its auditors in order to be able to file its annual report for the year 2014. The NASDAQ did not appreciate that the company had not filed its annual report when it was due and it relisted the shares of the company on March 14, 2017.The company has released several communications stating that it will try to relist its shares once the new independent accounting firm prepares the filings for the years 2015 and 2016. Dave Dresner, Interim Chief Executive Officer of the Company provides a detailed explanation of the due work in his comment of last week:

"With the filing of the 2014 Form 10-K/A now behind us, we look forward to working with a new independent accounting firm to complete the audits of our 2015 and 2016 financial statements and file the annual reports on Form 10-K for those years with the SEC. Once those reports are filed, we will bring our 2017 quarterly filings on Form 10-Q up to date and resume the timely filing of our SEC reports. We plan to apply for March 14, 2017 once all our SEC filings are current."

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We believe that if the company can restore its filings and regain the trust of the market the stock could rebound. If you take a look at the following chart you will see that the share price of this company was valued $25 not long ago. The shares lost 80% of its value in a short period of time. So, is the market overreacting to the accounting issues?The company is bringing new independent directorsOnce we figured out that the company was restating its financial figures we wanted to check if there was any change in the Board of Directors. We do not appreciate investing in company that see how theirs shares prices fall dramatically and change nothing. This case has been different since the company has brought new independent directors. This is definitely a renovated Board of Directors. It was communicated in a press release on February 10, 2017. It reads as follows:

"Osiris Therapeutics, Inc. (NASDAQ: OSIR) is pleased to announce that its Board of Directors, at a Board Meeting on February 7th, 2017, confirmed the appointment of Messrs. Uwe Sommer and Thomas J. Knapp as directors, upon recommendation of the Nominating Committee, and each will stand for election at the Company’s 2017 Stockholders Meeting. Mr. Sommer and Mr. Knapp each join Osiris as independent Board members."Souce

Mr. Sommer brings extensive experience to the Board. He has held executive roles in big corporations such as Johnson & Johnson and Procter & Gamble. We are pretty sure that the company will change certain behaviors now that he is on the Board. In addition, Mr. Knapp brings large legal firm expertise including Federal and State regulatory matters. He holds experience at The Boeing Company and The Burlington Northern & Santa Fe Railway Company. This is exactly the profile that we needed in this company, given the legal issues that the company has to face as of today.ConclusionOsiris seems to be modifying many of its previous activities. The company hired a new independent auditing firm to restate its previous financial performance and it released the figures of 2014, which were better than expected. In addition, the company has added new directors to the Board with extensive experience. We believe that these new directors will help reshape the company and make it again what it was in the past.We cannot really know what will happen in the future with this stock, but there is one thing that it is sure. The company is making efforts to change the direction of the boat. Therefore, we believe that it is important to stay informed about this name since other changes in the company could be announced soon. We will be updating our subscribers as soon as we know more. For the latest updates on OSIR, sign up below!Disclosure: The author does not own shares of Osiris Therapeutics, Inc (NASDAQ:OSIR). Insider Financial has not been compensated for this article.