Orthopedic News Roundup 6-Apr-06
BY HUYEN NGUYEN, APRIL 6, 2006
The announcement of Biomet hiring investment bank Morgan Stanley, sent its stock price up 11% in one day. With news of Dane Miller resigning and the Company hiring a banker, there were many speculations suggesting Biomet is for sale. However, in a local paper, Biomet denied any rumors that it is looking to be acquired. This rumor may not subside any time soon since the Company is still operating under an Interim President and CEO.
Clinical Update: Clearant, Inc. reported findings of strong support from nine orthopedic surgeons recommending sterile implants treated with the CLEARANT PROCESS. At a recent AAOS meeting in Chicago, a team of surgeons panel discussed their finding and showed that at six-month post-op, patients who had knee reconstruction using CLEARANT PROCESS-treated tissue, the strength and ability of the operated knee was comparable to the non-operated knee.
Development & Distribution Agreement: Pioneer Surgical Technology and Encelle, Inc. have entered into a product development agreement to expand Encelle's E-Matrix™ product for use in spinal fusion procedures. E-Matrix™ is an injectable biopolymer matrix intended to repair and regenerate damage tissues.
Earnings: Osteotech reported 4Q:05 financial results with sales basically flat for the quarter. In FY:05, sales increased by 5% to $93.3 million year-over-year. The Company incurred a net loss of $21 million or a loss of $1.23 per share for FY:05; sales of its DBM and Base Tissue products were reported at $52 million and $40 million, respectively. Sam Owusu-Akyaw, President & CEO of Osteotech, commented that he was disappointed with 2005 financial results, but is confident that 2006 and beyond the Company will be profitable.
Management Change: James M. Pusey, MD, President and CEO of OrthoLogic, has resigned. Randolph C. Steer, MD, Ph.D. will take over Dr. Pusey's position as President. Dr. Steer has been a consultant to the Company since 2002. Also, John M. Holliman, III, who has been a director and Chairman of the Board since 1987, will assume the title of Executive Chairman.
Mergers & Acquisitions: The FTC approved dj Orthopedics' acquisition of Aircast for $290 million in cash. The transaction was announced in February 27, 2006, and is expected to close in the near future.
Product Introduction & Update: BREG, Inc., a division of Orthofix International, N.V., announced a launching of full line FUSION functional knee braces, including FUSION, FUSION XT, FUSION Women's and FUSION OA. The FUSION braces are lightweight with comfortable padding and conform to the leg.
Smith & Nephew launched the JOURNEY™ Bi-Cruciate Stabilized Knee System that designed to restore natural knee motion. The system instruments can be used for both minimally invasive surgery as well as computer assisted surgery.
BioElectronics Corporation has developed five uniquely-shaped next generation ActiPatch™ designed for specific applications. ActiPatch™ is a drug-free anti-inflammatory patch with an embedded battery that delivers continuous pulsed therapy that reduces soft tissue pain and swelling.
Ossur announced that it has decided to recall its Total Knee® product line. The recall was based on finding that some units of the Total Knee device may contain faulty pins based in the axis of the knee.
Regulatory Update: IsoTis OrthoBiologics has received 510(k) clearance for its Accell Connexus™ and OrthoBlast II® in dental indications. Both products are currently used to fill bony voids in bone.
Miscellaneous: According to Irving Levin Associates, Inc., in 1Q:06 the total amount of venture capital funding for healthcare was $2.2 billion, of which, $605 million were invested in medical device sector. Irving is a publisher specialized in the area of mergers, acquisitions, venture capital funding in the healthcare industry. More stories on artificial disc replacement procedure are discussed.
