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Osiris Therapeutics Inc., the troubled Columbia-based biotechnology firm that saw its CEO resign last month, said Tuesday it has been notified of a failure to comply with rules for listing on the Nasdaq Stock Market.

NASDAQ notified Osiris March 17 that it did not file its annual report for the year ended Dec. 31 on a timely basis with the U.S. Securities and Exchange Commission. To continue to be listed, the company must submit a plan to regain compliance within 60 days.

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The company previously disclosed that it is completing an accounting review of revenue under contracts with distributors, amending some prior earnings reports filed with SEC and moving to a new independent accounting firm.

"The company intends to file its Form 10-K [annual report] as soon as practicable," Osiris said in a statement.

Considered one of the state's most promising biotechnology firms and a specialist in wound care, orthopedics and sports medicine, Osiris is known for stem cell-based products, including Grafix, a human tissue treatment for chronic wounds such as foot ulcers.

Earlier this month, the company confirmed interim CEO Dwayne Montgomery as its new president and CEO. He stepped in last month after former CEO Lode Debrabandere resigned for personal reasons. The leadership shake-up followed months of difficulties for Osiris, which is shifting from a research firm to a commercial enterprise. The company faces shareholder lawsuits after restating earnings, its auditor resigned in December and its stock has plummeted.

Prior to the announcement, the company's stock rose 3.8 percent Tuesday to close at $5.71 per share.

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