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Cementing its place in Orthopedics BY EDITOR, OCTOBER 8, 2003

Orthovita announced this week that it had been granted a patent covering 14 claims related to its ALIQUOT™ Micro Delivery System. ALIQUOT™ is a minimally invasive system to deliver the company's innovative and very interesting new product CORTOSS – which is a calcium based, synthetic Cortical Bone Void Filler. While allograft paved the way with surgeons for an alternative bone void fill, CORTOSS represents the brightest of a new generation of materials that tries to improve on allografts shortcomings – namely, supply constraints, handling characteristics, safety (sterility and guaranteed no disease transmission risk) and more flexible set up in the patient. Most interesting is CORTOSS's potential in the developing market for vertebral compression facture reduction. With FDA approval of CORTOSS, we would expect this material to be used by a significant number of surgeons as an alternative material to PMMA in vertebral compression fracture reduction.

Biologics in Surgery Unit Volume Estimate – NEW Technologies

  Spine Surgery Unit Volumes Application Average Unit Selling Price Prospective Revenue
Technology Category 2002 est 2012 est 2012 2012 2012
Healing compounds 20,000 250,000 All spine surgery $1,500 $375 million
Reabsorbable structural implants 150,000 400,000 DDD, trauma, scloliosis $1,250 $500 million
Tissue engineering – in vivo 0 50,000 DDD, trauma $2,500 $125 million
Anti-adhesion compounds 15,000 400,000 All spine surgery $350 $140 million
Cellular cartilage repair 0 100,000 Facet Joint Arthritis $4,500 $1,800 million
Drug/antibiotic implant coatings 0 250,000 DD, Oncology, harvest site $500 $125 million
Surgical sealants & adhesives 5,000 500,000 All Spine Surgery $150 $75 million
Stem cells 0 60,000 oncology, arthritis $2,500 $150 million
Totals 190,000 2,010,000*   $1,550 $3,290 million

* Most surgical procedures would use more than one of these biological products; therefore, there is double counting.

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