ST. PAUL, Minn., Dec. 7 /PRNewswire-FirstCall/ -- Synovis Life Technologies, Inc. , announced today that Synovis Micro Companies Alliance (MCA), a wholly owned subsidiary serving the microsurgery market, has purchased the rights to the Neurotube(R), a bioabsorbable nerve conduit from Neuroregen, LLC. The transaction includes all operating assets related to the sale and marketing of the Neurotube and involves a $1.0 million cash payment to Neuroregen, plus earnout and royalties over a five-year period. Synovis MCA will begin selling the Neurotube through its independent distribution network immediately.
The Neurotube is designed to help reconstruct nerves severed as a result of injury or disease. Using the Neurotube to repair nerve gaps eliminates the need for a second operation to harvest nerve tissue from another site on the patient. The second surgery often results in loss of sensation, external scarring and pain. The use of nerve conduits has been proven to have greater success than nerve grafting.
"Finding and acquiring niche market products has long been part of our diversification strategy, and the Neurotube fits that vision precisely," said Karen Gilles Larson, president and chief executive officer of Synovis Life Technologies. "Our distributors and representatives are already calling on physicians in the microsurgery arena with the Microvascular Anastomotic Coupler, a device microsurgeons use to connect extremely small blood vessels without sutures. We believe the Neurotube represents an excellent addition to our surgical business product portfolio."
John Barham, managing member of Neuroregen, added, "The Neurotube was the first biodegradable nerve conduit to be cleared for peripheral nerve repair in the United States and Europe. Potential applications in the head and neck, hand, plastic, neurosurgery and orthopedic markets all have significant growth possibilities."
Mr. Barham will be a consultant to Synovis MCA, assisting in product training and field support. Synovis MCA anticipates that its much larger distribution force, which is focused on the microsurgical market, will accelerate sales of this technologically advantageous and clinically efficacious product from its current annual revenue base of under $500,000. The estimated annual U.S. market potential for this product is $35 million, based on 700,000 potentially applicable procedures, not all of which use a nerve guide today.
The product received Food and Drug Administration marketing clearance in 1999 and CE Mark Approval in 1995. The Neurotube is a woven, corrugated tube made of polyglycolic acid (PGA), a material widely used for surgical repair. The Neurotube is used in both primary and secondary nerve reconstruction surgeries. The tube remains intact during critical nerve gap regrowth and is subsequently absorbed by the body over a period of several months. The severed nerve ends are inserted into each end of the Neurotube and can be used for the repair of peripheral nerve gaps from 8mm to 3cm in length.
About Synovis Life Technologies
Synovis Life Technologies, Inc., based in St. Paul, Minn., is a diversified medical device company engaged in developing, manufacturing and marketing medical devices for the surgical and interventional treatment of disease. For additional information on Synovis Life Technologies and its businesses, visit the company's Web site at http://www.synovislife.com/ .
Forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements can be identified by words such as "should", "could", "may", "will", "expect", "believe", "anticipate", "estimate", "continue", or other similar expressions. Certain important factors that could cause results to differ materially from those anticipated by the forward-looking statements made herein include the timing of product introductions, the number of certain surgical procedures performed and the level of orders from contract manufacturing customers. A full discussion of factors can be found in the company's Annual Report on Form 10-K for the year ended October 31, 2003, and the form 10-Q for the quarter ended July 31, 2004.
Synovis Life Technologies, Inc.
The Neurotube is designed to help reconstruct nerves severed as a result of injury or disease. Using the Neurotube to repair nerve gaps eliminates the need for a second operation to harvest nerve tissue from another site on the patient. The second surgery often results in loss of sensation, external scarring and pain. The use of nerve conduits has been proven to have greater success than nerve grafting.
"Finding and acquiring niche market products has long been part of our diversification strategy, and the Neurotube fits that vision precisely," said Karen Gilles Larson, president and chief executive officer of Synovis Life Technologies. "Our distributors and representatives are already calling on physicians in the microsurgery arena with the Microvascular Anastomotic Coupler, a device microsurgeons use to connect extremely small blood vessels without sutures. We believe the Neurotube represents an excellent addition to our surgical business product portfolio."
John Barham, managing member of Neuroregen, added, "The Neurotube was the first biodegradable nerve conduit to be cleared for peripheral nerve repair in the United States and Europe. Potential applications in the head and neck, hand, plastic, neurosurgery and orthopedic markets all have significant growth possibilities."
Mr. Barham will be a consultant to Synovis MCA, assisting in product training and field support. Synovis MCA anticipates that its much larger distribution force, which is focused on the microsurgical market, will accelerate sales of this technologically advantageous and clinically efficacious product from its current annual revenue base of under $500,000. The estimated annual U.S. market potential for this product is $35 million, based on 700,000 potentially applicable procedures, not all of which use a nerve guide today.
The product received Food and Drug Administration marketing clearance in 1999 and CE Mark Approval in 1995. The Neurotube is a woven, corrugated tube made of polyglycolic acid (PGA), a material widely used for surgical repair. The Neurotube is used in both primary and secondary nerve reconstruction surgeries. The tube remains intact during critical nerve gap regrowth and is subsequently absorbed by the body over a period of several months. The severed nerve ends are inserted into each end of the Neurotube and can be used for the repair of peripheral nerve gaps from 8mm to 3cm in length.
About Synovis Life Technologies
Synovis Life Technologies, Inc., based in St. Paul, Minn., is a diversified medical device company engaged in developing, manufacturing and marketing medical devices for the surgical and interventional treatment of disease. For additional information on Synovis Life Technologies and its businesses, visit the company's Web site at http://www.synovislife.com/ .
Forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements can be identified by words such as "should", "could", "may", "will", "expect", "believe", "anticipate", "estimate", "continue", or other similar expressions. Certain important factors that could cause results to differ materially from those anticipated by the forward-looking statements made herein include the timing of product introductions, the number of certain surgical procedures performed and the level of orders from contract manufacturing customers. A full discussion of factors can be found in the company's Annual Report on Form 10-K for the year ended October 31, 2003, and the form 10-Q for the quarter ended July 31, 2004.
Synovis Life Technologies, Inc.
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