Osteotech Announces Favorable Ruling in Patent Suit Against GenSci

Apr 16, 2001, 01:00 ET from Osteotech, Inc.

    EATONTOWN, N.J., April 16 /PRNewswire/ -- Osteotech, Inc. (Nasdaq: OSTE)
 announced today that the U.S. District Court for the Central District of
 California granted its motion seeking summary judgment on U.S. Patent No.
 5,290,558 ("the '558 Patent").  The Court found that GenSci's DynaGraft Gel
 and DynaGraft Putty products literally infringe claims 4 and 10 of Osteotech's
 '558 Patent, and, therefore, entered the judgment of literal infringement.
     The Court's summary judgment decision follows its December, 2000 Markman
 ruling in which it construed the claims of the '558 Patent and U.S. Patent No.
 5,284,655 in a manner favorable to Osteotech.  Based on the Court's favorable
 claim construction ruling, on January 23 of this year, Osteotech filed a
 motion for summary judgment of infringement of claims 4 and 10 of the '558
 Patent.  Shortly after Osteotech filed its motion, which was based in part on
 GenSci's admissions that DynaGraft is osteogenic (osteoinductive), and that
 DynaGraft contains new bone growth-inducing amounts of demineralized
 osteogenic bone powder, GenSci filed a motion seeking to withdraw those
 admissions.  The Court denied GenSci's motion to withdraw its admissions on
 March 22, 2001.  On April 5, 2001, GenSci petitioned the Federal Circuit Court
 of Appeals for an immediate review of the district court's denial of GenSci's
 motion to withdraw it admissions that DynaGraft is osteogenic
 (osteoinductive).  That petition is pending.
     "We are pleased with the court's ruling that GenSci's products literally
 infringe our patent," stated Richard W. Bauer, Osteotech's Chief Executive
 Officer.  "While this decision does not end the case, we believe that the
 Court's decision on literal infringement will be advantageous to us in the
 upcoming trial.  We also find it ironic that GenSci has sought to withdraw
 their admissions that their products are osteogenic (osteoinductive) while at
 the same time they continue to state in the market place that their products
 are osteogenic (osteoinductive).  We remain confident that our positions will
 be upheld at the upcoming trial."
     Given the high level of interest in this case among Osteotech's
 shareholders, a copy of the Court's rulings are available through Osteotech's
 Investor Relations Department.
 
     This press release contains forward-looking statements regarding
 Osteotech's current expectation as to the outcome of this lawsuit.  Such
 forward-looking statements are subject to risks and uncertainties, including
 without limitation the risks inherent in patent litigation and other factors
 detailed from time to time in the Company's periodic reports (including the
 Annual Report on Form 10-K for the year ended December 31, 2000) filed with
 the Securities and Exchange Commission.  Actual outcomes could differ
 materially form those expressed.
     Osteotech, Inc., headquartered in Eatontown, New Jersey, is a leading
 provider of human bone and bone connective tissue for transplantation and an
 innovator in the development and marketing of biomaterial and implant products
 for musculoskeletal surgery.
 
 

SOURCE Osteotech, Inc.
    EATONTOWN, N.J., April 16 /PRNewswire/ -- Osteotech, Inc. (Nasdaq: OSTE)
 announced today that the U.S. District Court for the Central District of
 California granted its motion seeking summary judgment on U.S. Patent No.
 5,290,558 ("the '558 Patent").  The Court found that GenSci's DynaGraft Gel
 and DynaGraft Putty products literally infringe claims 4 and 10 of Osteotech's
 '558 Patent, and, therefore, entered the judgment of literal infringement.
     The Court's summary judgment decision follows its December, 2000 Markman
 ruling in which it construed the claims of the '558 Patent and U.S. Patent No.
 5,284,655 in a manner favorable to Osteotech.  Based on the Court's favorable
 claim construction ruling, on January 23 of this year, Osteotech filed a
 motion for summary judgment of infringement of claims 4 and 10 of the '558
 Patent.  Shortly after Osteotech filed its motion, which was based in part on
 GenSci's admissions that DynaGraft is osteogenic (osteoinductive), and that
 DynaGraft contains new bone growth-inducing amounts of demineralized
 osteogenic bone powder, GenSci filed a motion seeking to withdraw those
 admissions.  The Court denied GenSci's motion to withdraw its admissions on
 March 22, 2001.  On April 5, 2001, GenSci petitioned the Federal Circuit Court
 of Appeals for an immediate review of the district court's denial of GenSci's
 motion to withdraw it admissions that DynaGraft is osteogenic
 (osteoinductive).  That petition is pending.
     "We are pleased with the court's ruling that GenSci's products literally
 infringe our patent," stated Richard W. Bauer, Osteotech's Chief Executive
 Officer.  "While this decision does not end the case, we believe that the
 Court's decision on literal infringement will be advantageous to us in the
 upcoming trial.  We also find it ironic that GenSci has sought to withdraw
 their admissions that their products are osteogenic (osteoinductive) while at
 the same time they continue to state in the market place that their products
 are osteogenic (osteoinductive).  We remain confident that our positions will
 be upheld at the upcoming trial."
     Given the high level of interest in this case among Osteotech's
 shareholders, a copy of the Court's rulings are available through Osteotech's
 Investor Relations Department.
 
     This press release contains forward-looking statements regarding
 Osteotech's current expectation as to the outcome of this lawsuit.  Such
 forward-looking statements are subject to risks and uncertainties, including
 without limitation the risks inherent in patent litigation and other factors
 detailed from time to time in the Company's periodic reports (including the
 Annual Report on Form 10-K for the year ended December 31, 2000) filed with
 the Securities and Exchange Commission.  Actual outcomes could differ
 materially form those expressed.
     Osteotech, Inc., headquartered in Eatontown, New Jersey, is a leading
 provider of human bone and bone connective tissue for transplantation and an
 innovator in the development and marketing of biomaterial and implant products
 for musculoskeletal surgery.
 
 SOURCE  Osteotech, Inc.