Profile: Osteotech Inc (OSTE.O)

Osteotech, Inc. (Osteotech) is a medical technology company that develops, processes and distributes biologic products focused on the orthopedic, neurosurgical and oral/maxillofacial surgery markets. The Company is focused on creating technology platforms that provides a variety of procedural specific biologic products to address the changing needs of orthopedics and healthcare in general. The Company’s products focus on biologic solutions for regenerative medicine that can alleviate pain, promote healing and restore functions. Osteotech has five technology platforms: Demineralized Bone Matrix (DBM), Hybrid/Synthetic, Human Collagen Technology, Traditional Tissue and Spinal Allograft.

Demineralized Bone Matrix (DBM)

The DBM Segment engages in the processing and marketing of its branded Grafton DBMs. Revenue in the DBM segment is primarily related to the marketing of Grafton DBM and its Xpanse Bone Inserts to end users through the Company’s sales teams and distribution partners. As of May 27, 2009, the Company's Grafton DBM forms is been used in over 400,000 surgical procedures by more than 4,000 transplant professionals, worldwide.

Hybrid/Synthetic

The Hybrid/Synthetic Segment engages in the processing and marketing of biocomposite and synthetic material products. Hybrid/Synthetic segment includes revenue from Plexur M Biocomposite and Plexur P Biocomposite. The Plexur family of products are osteo-conductive biocomposites made of cortical fibers uniquely engineered to support bone healing. MagniFuse, Osteotech’s first product stemming from its hybrid/synthetic technology platform, is a biologic formulation that is covered by seven patents and will initially focus on posterolateral spine procedures.

Traditional Tissue

The Traditional Tissue Segment engages in the processing of mineralized weight-bearing allograft bone tissue. The Company distributes mineralized weight-bearing and non-weight bearing tissue forms and soft tissue grafts. The weight-bearing tissue forms include femoral cross sections, fibula wedges and cortical struts and the non-weight bearing tissue forms include cancellous and cortical chips. Soft tissue grafts are utilized primarily in sports medicine procedures. These tissue grafts are distributed worldwide by the sales teams and are processed primarily in the domestic facility, although certain non-weight bearing tissue grafts are processed at the Company’s facility in France.

Spinal Allograft

As of May 27, 2009, the Company’s revenue in the Spinal Allograft segment is generated from the distribution to hospitals and surgeons of the Company’s line of Graftech Bio-Implant spacers and ramps. Graftech Bio-Implants are utilized primarily in spinal fusion procedures. Subsequent to the year ended December 31, 2008, the Company launched Facetlinx, its spinal allograft product for use in facet fusion procedure applications. Facetlinx is differentiated by its shape, which is designed to maximize the stability of the graft within the facet joint.

Human Collagen Technology

Osteotech’s first product stemming from its Human Collagen Technology (HCT) platform, the DuraTech BioRegeneration Matrix is designed to for use in the repair of dura mater during surgical procedures. Osteotech focuses on introducing additional human collagen-based tissue products that address patient needs, including: rotator cuff repair, wound care applications and abdominal wall reconstruction.

The Company competes with Medtronic, Inc., Synthes Inc., Integra Life Sciences Holdings Corporation, RTI Biologics, Inc., LifeNet Health, Inc., Musculoskeletal Transplant Foundation, Orthovita, Inc., Johnson & Johnson Services, Inc., Wright Medical Technology, Inc. and Apatech, Inc.