Kensey Nash Corporation and Orthovita, Inc. Announce New
Agreements to Jointly Develop Soft Tissue Repair Products and Extend
Co-Development Relationship
EXTON, Pa. and MALVERN, Pa., March 3 /PRNewswire-FirstCall/ -- Kensey Nash
Corporation (NASDAQ:KNSY) and Orthovita, Inc. (NASDAQ:VITA) today jointly
announced they have expanded on their existing relationship and have agreed to
pursue co-development of soft tissue repair products for orthopedics. In
addition, the companies agreed to a lengthened term of their original
co-development agreement signed in March 2003, which has led to the launching
of four product lines in the last twelve months, with more products planned.
Similar to the terms of the original agreement, Kensey Nash will manufacture
the new co-developed soft tissue products and Orthovita will market and sell
the products worldwide through its focused biomaterials distribution channel,
with Kensey Nash receiving a royalty on the net sales. The new products are
expected to be available for launch in calendar year 2006 pending receipt of
required regulatory clearances. In addition, the first agreement, under which
the VITOSS FOAM products have been commercialized, has been extended until
2014.
"Our co-development activities with Orthovita have been very synergistic,"
commented Joe Kaufmann, President and CEO of Kensey Nash Corporation. "With
these new agreements, we are looking to build on the successful relationship we
have already established with Orthovita, and to extend the clinical
applications of our BioBlanket(TM) and other related soft tissue technologies. Orthovita's distribution system, specializing in biomaterials products for the
orthopedic sector, is unique in the industry. Their focus has been an
important factor in the success of the co-developed VITOSS FOAM products
launched to date," he concluded.
"Orthovita continues to identify new clinical targets for biomaterials products
in the orthopedic space," said Antony Koblish, President and CEO of Orthovita.
"Kensey Nash's extensive development expertise, in combination with our own,
has been very valuable for us quickly getting useful products to surgeons to
meet their clinical needs. We are pleased to be able to expand and diversify
our biomaterials franchise to include bone and now soft tissue management
products." Additional terms of the new agreements were not disclosed.
About Kensey Nash Corporation. Kensey Nash Corporation is a leading developer
and manufacturer of absorbable biomaterials-based products with applications in
the cardiology, orthopedics, spine, drug and biologics delivery,
periodontal/dental, surgical and wound care markets. The Company was a pioneer
in the field of arterial puncture closure, as the inventor and developer of the
Angio-Seal(R) Vascular Closure Device, which is licensed to St. Jude Medical,
Inc. The Company's TriActiv(R) Balloon Protected Flush Extraction System for
the treatment of saphenous vein graft disease is commercialized in the European
Union. The Company has submitted an application for 510(k) clearance for its
TriActiv(R) System to the U.S. Food and Drug Administration, following the
completion of a major clinical study.
About Orthovita, Inc. Orthovita is a leading biomaterials company with
proprietary technologies for the development and commercialization of
synthetic, biologically active, tissue engineering products for orthopedic and
neurosurgical applications. The Company's products are used in the
regeneration of bone and soft tissue. Its near-term commercial business is
based on its VITOSS(R) Bone Graft Substitute technology platforms, which are
designed to address the non-structural bone graft market by offering synthetic
alternatives to the use of autograft or cadaver-derived bone material to meet a
broad range of orthopedic clinical needs in the spine, trauma, joint
reconstruction, revision surgery and extremities markets, and VITAGEL(TM)
Surgical Hemostat, which is a safe adherent matrix and an impermeable barrier
to blood flow. Orthovita's longer-term U.S. clinical development program is
focused on our CORTOSS(R) Synthetic Cortical Bone technology platform, which is
designed for injections in osteoporotic spines to treat vertebral compression
fractures. Orthovita works jointly with Kensey Nash Corporation and Angiotech
Pharmaceuticals, Inc., to develop and market novel synthetic- based biomaterial
products, and continues to pursue similar relationships with other companies in
biomaterials.
Cautionary Note Regarding Forward-Looking Statements. This press release
contains forward-looking statements that reflect each of Kensey Nash's and
Orthovita's current expectations about its prospects and opportunities. The
companies have tried to identify these forward-looking statements by using
words such as "believe," "expects," "anticipates," "will," "should" or similar
expressions, but these words are not the exclusive means for identifying such
statements. The companies caution that a number of risks, uncertainties, and
other important factors could cause actual results, performance or achievements
to differ materially from those expressed in, or implied by, these
forward-looking statements, including, without limitation, the ability of
Kensey Nash and Orthovita to successfully develop and commercialize the
products contemplated by the new agreement. For a more detailed discussion of
these and other factors, please see Kensey Nash's and Orthovita's filings with
the Securities and Exchange Commission. Except as expressly required by the
federal securities laws, the companies undertake no obligation to update or
revise any forward-looking statements, whether as a result of new information,
changed circumstances or future events or for any other reason. DATASOURCE: Kensey Nash Corporation CONTACT: Joseph W. Kaufmann, President and Chief Executive Officer, Kensey Nash Corporation, +1-610-524-0188; or Joseph M. Paiva, Chief Financial Officer, Orthovita, Inc., +1-610-407-5233 or +1-800-676-8482 Web site: http://www.kenseynash.com/
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