NovaBone Products LLC acquires product lines from USBiomaterials

July 30, 2002
Acquisition launches new company in multi-markets

NovaBone Products LLC (NBP) today announced the acquisition of a synthetic bone graft materials business from USBiomaterials Corporation in Alachua, Fla. Arthur C. Wotiz, CEO, and J.C. Demetree, Jr., Chairman, formed NBP for the purpose of buying the business that is sold under the brand names of PerioGlas(R), NovaBone C/M(TM), and NovaBone(R).

"This acquisition is the launch of a new company that will intensify and expand a worldwide marketing strategy for brands with a proven track record," said Demetree.

PerioGlas(R) is used around the world as a `standard of care' for regeneration of periodontal tissues lost to advanced periodontal disease. It is sold in over 40 countries and has successfully been used in over 600,000 surgical cases. NovaBone(R) and NovaBone C/M(TM) are used for bone regeneration in orthopedic and facial reconstruction and have been growing in popularity with surgeons since the products were launched in Europe two years ago.

Sales for the brands are up sharply from last year and Wotiz anticipates the trend will accelerate with the company's emphasis on building mutually beneficial marketing partnerships in specialized market segments.

"These synthetic bone graft materials perform without the potential risk of contamination as when using cadaver bones," said Wotiz. "And, our products are readily available, unlike cadaver bone which is in short supply."

Wotiz has served as Chairman of USBiomaterials for the past three years; Wotiz will remain on the Board of USBiomaterials with the intent of capturing synergistic marketing opportunities with USBiomaterials. Financial terms of the deal were not announced.

All of the USBiomaterials employees who have been involved in the manufacturing and marketing of PerioGlas(R) and NovaBone(R) will work for the new company. Manufacturing operations will remain in Alachua close to the USBiomaterials operation while the management and marketing offices will be located in Jacksonville.

According to USBiomaterials' CEO Randy Scott, the sale was a part of an on-going strategic restructuring designed to focus USBiomaterials on its most promising opportunities.

"USBiomaterials will now narrow its focus primarily to commercializing its NovaMin (TM) tooth remineralizing technology that reverses the effects of age on teeth," said Scott.