Orthofix International Signs Development and Commercialization Agreements with Musculoskeletal Transplant Foundation

Thursday, August 07, 2008 8:13 AM

Symbols: OFIX

Companies Will Collaborate on New Stem Cell-Based Allograft

Orthofix International N.V. (NASDAQ: OFIX) (the Company) announced today that it has signed agreements with the Musculoskeletal Transplant Foundation (MTF) to collaborate on the final development and distribution of a stem cell-based allograft.

“We are extremely excited about this agreement with MTF,” said Orthofix’s CEO Alan Milinazzo. “They are the largest, most prestigious tissue bank in the United States, with a track record of working with global orthopedic companies to bring new treatments to surgeons around the world. Additionally, we believe this new stem cell-based bone growth matrix will further differentiate our broad portfolio of spine products.”

Under the terms of the agreements Orthofix will fund a milestone based program to develop a bone growth matrix that will be designed to provide beneficial properties comparable to an autograft in spinal and orthopedic surgeries. After the successful completion of the development process, Orthofix and MTF will work together in accordance with a separate commercialization agreement.

Bruce Stroever, CEO of MTF, stated, “We are pleased to be working with Orthofix to develop a stem cell based tissue form. This is a new area for MTF that helps us fulfill our mission to supply life changing grafts for transplant that are derived from the gift of human tissue.”

Under the terms of the agreement MTF will focus on the procurement of donor tissue, the processing of the bone growth matrix, and the fulfillment of orders received. Orthofix has exclusive global marketing rights for the new allograft, and will receive a marketing fee from MTF. The Company currently plans for the new matrix to be launched in the U.S. during the second half of 2009.

Orthofix will discuss this agreement further on the Company’s second quarter earnings conference call to be held today at 11:00 AM Eastern. Interested parties may access the conference call by dialing (866) 626-7622 in the U.S., and (706) 758-3283 outside the U.S., and providing the conference ID 56580604.