UPDATE: Piper Jaffray Downgrades Osiris Therapeutics on DFU Data

In a report published on Tuesday, Piper Jaffray analyst Edward A. Tenthoff downgraded Osiris Therapeutics OSIR from Overweight to Neutral and increased the price target on the company from $14 to $21.

In the report, Piper Jaffray stated, "Interim results from the Grafix trial in Diabetic Foot Ulcers (DFUs) met pre-specified stopping rules for overwhelming efficacy. On the primary endpoint, 62% of Grafix patients achieved complete wound closure vs. 21% on standard therapy (p<0.0001). As a result, the blinded phase of the trial is being discontinued immediately, and all patients will now be offered Grafix. Osiris will publish and report these impressive results at upcoming medical meetings and present the data to payors for Grafix reimbursement in DFU. OSIR shares have more than doubled this morning on the news."

Osiris Therapeutics closed on Monday at $10.66.