IRVINE, Calif., May 15, 2001 (PRIMEZONE) -- Interpore Cross International (Nasdaq:BONZ) today announced that it has signed an agreement with AlloSource(r) for the development, production and distribution of a proprietary demineralized bone matrix (DBM) putty.
Under this agreement, Interpore Cross will provide its proprietary carrier formulation to AlloSource for incorporation with AlloGro(r) DBM. AlloSource, one of the nation's leading non-profit tissue bank cooperatives, will produce the new product at its state-of-the-art processing facility in Centennial, Colorado, and will distribute the product from its five U.S. distribution facilities. Interpore Cross will be the exclusive marketer of the product, utilizing its U.S. network of independent agents which employ nearly 150 representatives. The product will be available in sterile packaging, ready for off-the-shelf use with no mixing or special storage requirements.
The companies have already begun the product development process and expect to have product ready for market introduction during the third quarter of 2001. The agreement provides that the companies will continue to cooperate in the development and distribution of additional innovative allograft products utilizing the market leading capabilities of both organizations.
Due to favorable handling characteristics and potentially osteoinductive properties, processed allograft putties have garnered rapid market acceptance in recent years. The company estimates that the U.S. market for processed allograft products is in excess of $100 million. In a study published in a peer-reviewed medical journal, the AlloSource bioassay showed a strong correlation between AlloGro DBM and new bone formation in a recognized animal model of osteoinductivity.
David C. Mercer, Interpore Cross chairman and chief executive officer, said: "Our goal is to provide the orthopedic spine surgeon and neurosurgeon a broad array of orthobiologic product choices. Whether the surgeon prefers a synthetic bone graft material like Pro Osteon(tm), or an allograft-based product like our new DBM putty, we'll be able to fulfill those needs. We are extremely pleased to have the opportunity to enter into a relationship with a market-leading tissue processor like AlloSource."
Tom Cycyota, president and chief executive officer of AlloSource, said: "AlloSource interviewed numerous potential partners for this project and chose Interpore Cross because of its proprietary carrier technology, strong field organization and the company's sensitivity to human donated tissue. This product will allow AlloSource to further its mission of returning high quality tissue back to our donor areas while protecting our stewardship of this valuable gift."
Interpore Cross International is a medical device company that designs, manufactures and markets spinal implant devices and orthobiologic products on a worldwide basis. The spinal products are used to treat degenerative conditions, deformities and trauma of the spine. The orthobiologic products are used for bone and soft tissue repair in orthopedic and other applications. For more information, visit the company's Website at www.interpore.com.
AlloSource, one of the nation's largest non-profit tissue bank cooperatives, brings together four of the country's most reputable organ and tissue procurement groups: Mid-America Transplant Services of St. Louis; Donor Alliance of Denver; The Regional Organ Bank of Illinois in Chicago; and the Lifesharing(tm) Community Organ and Tissue Donation in San Diego. AlloSource and its partners are AATB accredited and have many years of combined experience in the tissue banking industry. For more information, visit the company's Website at www.allosource.org.
Certain statements in this release are forward-looking and may involve risks and uncertainties, including, but not limited to: risk that new products may not be successfully developed on a timely basis or at all; product demand and market acceptance risks; risks that future sales growth may decline; risk that the company will not receive regulatory approval of products; risk that agents or distributors will be unsuccessful in sales of products; risk that our contract partners will devote insufficient time or resources to the manufacturing and distribution of our products; risks related to the development of future products; the risk of intellectual property litigation; and the impact of competitive products. Additional information on factors that could affect the company's financial results and growth prospects is disclosed in the company's reports filed from time to time with the Securities and Exchange Commission.