Tutogen Potential Acquisition by Zimmer
BY HUYEN NGUYEN, MARCH 13, 2006
Tissue bank company, Tutogen Medical ("TTG"), was contacted by Zimmer's representative earlier today seeking for a possible increase in investment or acquisition. We expect that Zimmer ("ZMH") will eventually acquire all assets of TTG since ZMH CEP (formerly Centerpulse) holds 33% assets of TTG. TTG's new CEO, Guy L. Mayer, issued a statement and suggested that this transaction could happen in the future.
TTG recently released its 1Q:06 financial results with sales up by 14% year-over-year. The Company also reported a net loss of $379,000 or a loss of $0.02 per diluted shares. During the quarter sales in spine was slow, but dental was growing strong at double-digit rate. TTG currently have a distributing agreement with Zimmer Spine and Zimmer Dental, where ZMH Spine and ZMH Dental represent 10% and 43% of the respective total revenue.
TTG's stock was up 19% after the annoucement as investors were responding positively to the news.
