NuVasive Initiates "Legal Dispute" Over Stem Cell IP
BY LAUREN UZDIENSKI, APRIL 21, 2010
Yesterday afternoon on their 1Q:10 conference call, NuVasive revealed that they initiated a "legal dispute" against Orthofix over IP related to Osteocel, the stem-cell-based bone graft substitute acquired by NuVasive from Osiris in 2008. The details of this dispute were not revealed, but NuVasive vowed to "aggressively defend" their rights to Osteocel, which analysts estimate brought in about $35 million in revenue in 2009.
Prior to the NuVasive transaction, Orthofix marketed Osteocel as Trinity. Since that deal closed, Orthofix has collaborated with the Musculoskeletal Transplant Foundation to develop and launch Trinity Evolution, a similar stem-cell-based product. The Trinity portfolio was estimated to have about $20 million in sales in 2009. Osteocel and Trinity Evolution are the only two orthopedic stem cell products on the market, and this conflict helps to illustrate the importance of these biologics products to the companies.
In response to the allegations, Orthofix put out a press release calling the dispute and the forum for announcing it "questionable," adding they had not been in contact with NuVasive, nor had they received information about the dispute.
