EXTON, Penn., Jan. 3, 2011 /PRNewswire/ -- Kensey Nash Corporation (Nasdaq: KNSY), a regenerative medicine company, announced it has entered into a manufacturing agreement with, and made a minority equity investment in, Orteq Sports Medicine, a medical device company specializing in the field of biodegradable polymer technology for meniscus repair.
Orteq, with headquarters in London, UK, created Actifit®, a biocompatible synthetic meniscal scaffold offering sports medicine surgeons a new arthroscopic option for the treatment of irreparable partial meniscal tears. Orteq expects to receive FDA approval to start its Actifit® clinical trial in the U.S. in 2011. Actifit® received its CE Mark approval in 2008 and is currently available throughout Europe.
The FDA approval of the U.S. clinical trial will trigger an additional $1 million investment in Orteq, which will, on a cumulative basis, total approximately $5 million which includes the exclusive worldwide manufacturing rights and represents an approximate 10% ownership in Orteq.
Under the terms of the manufacturing agreement, Kensey Nash will receive a transfer price and royalties. Other terms of the agreement were not disclosed.
"Kensey Nash is very pleased to work with the talented and innovative Orteq team and its world-renowned clinicians who have generated outstanding clinical evidence," commented Joseph W. Kaufmann, President and CEO of Kensey Nash. "We believe Orteq's Actifit meniscus repair product can provide a safe and effective repair that will address over a $1 billion target market potential in sports medicine. We look forward to a successful and long term relationship," he concluded.
"We are delighted that Kensey Nash Corporation has made an investment in Orteq. The Kensey Nash team brings us world-class expertise to manufacturing and developing safe, effective and innovative medical devices for our customers, sports medicine surgeons," commented Dianne Blanco, CEO of Orteq.
About Kensey Nash Corporation. Kensey Nash Corporation is a medical device company primarily focused on regenerative medicine utilizing its proprietary collagen and synthetic polymer technology. The Company is recognized as a leader for innovative product development and unique technology in the field of resorbable biomaterials. The Company has an extensive range of products, which are sold through strategic partners in multiple medical markets, including, the cardiology, orthopaedic, sports medicine, spine, endovascular and general surgery markets. For more information, visit www.kenseynash.com.
About Orteq Sports Medicine. Orteq, with headquarters in London, UK and manufacturing, R&D in Groningen, the Netherlands, was established in 2005 to develop and commercialize solutions for orthopaedic/sports injuries. Orteq has developed a biodegradable, biocompatible polymer scaffold, Actifit®, specifically designed to support tissue ingrowth and regeneration in the meniscus, a fibrocartilage cushion in the knee. For more information, visit www.orteq.com.
Kensey Nash Cautionary Note for Forward-Looking Statements. This press release contains forward-looking statements that reflect the current expectations of Kensey Nash Corporation (the "Company") about its prospects and opportunities. The Company has tried to identify these forward looking statements by using words such as "expect," "anticipate," "estimate," "plan," "will," "would," "should," "forecast," "believe," "guidance," "projection" or similar expressions, but these words are not the exclusive means for identifying such statements. The Company cautions that a number of risks, uncertainties and other important factors could cause the Company's actual results to differ materially from those in the forward-looking statements including, without limitation, Orteq's success in selling its meniscus repair product pursuant to the agreement(or otherwise), the Company's success in its manufacturing efforts of Actifit®, the success of U.S. trials with respect to the Orteq's meniscus repair products and completion of additional clinical trials in both the U.S. and Europe to support regulatory approval of future generations of its products, competition from other technologies, Orteq's success in distributing its products into the marketplace, as well as tax and other risks associated with healthcare reform, economic conditions and foreign currency fluctuations. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's SEC filings, including the disclosures under "Risk Factors" in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.
SOURCE Kensey Nash Corporation