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Published on 1/18/2006 in the Prospect News Biotech Daily.

Tutogen signs $3.3 million distribution deal with Davol to market allograft biologic tissues for hernia repair

By E. Janene Geiss

Philadelphia, Jan. 18 - Tutogen Medical, Inc. announced Wednesday a four-year exclusive worldwide distribution agreement with Davol Inc., a subsidiary of C. R. Bard Inc., to promote, market and distribute Tutogen's line of allograft biologic tissues for hernia repair and the reconstruction of the chest and abdominal wall.

Davol, in addition to purchasing the product from Tutogen, will pay Tutogen about $3.3 million in fees, according to a company news release.

Tutogen said it will recognize in earnings about $825,000 each year for the four-year term of the agreement.

"Davol is widely recognized as the market leader for hernia repair products in the U.S. Our products are (allograft) human tissues and are the only hernia repair products on the market today that offer rapid rehydration and the safety profile offered by our Tutoplast process. We believe that these attributes provide surgeons with expanded options that can lead to improved patient outcomes," Guy Mayer, chief executive officer of Tutogen, said in the release.

In 2002 Tutogen said it entered the European market with a sterile biological membrane for hernia and abdominal wall repair featuring the company's proprietary Tutoplast process.

The tissues have been very well received in Europe and have been successfully used in abdominal wall surgery of neonates and children with hernia defects, officials said.

In the United States, it is estimated that about 1 million hernia repair procedures are performed each year, creating an estimated $150 million market, officials said.

Tutogen, based in Alachua, Fla., manufactures sterile biological implant products made from human (allograft) and animal (xenograft) tissue. Tutogen uses its Tutoplast Process of tissue preservation and viral inactivation to manufacture and deliver sterile bio-implants used in spinal/trauma, urology, dental, ophthalmology and general surgery procedures.


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