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CYTOMEDIX LICENSES PATENTS TO BIOMET FOR
$2.6 MILLIONROCKVILLE, Md., May 22, 2006– Cytomedix, Inc. (AMEX:
GTF), a biotechnology
company specializing in advanced technologies and autologous
platelet gels for chronic non-healing wounds, today announced
that it has entered into a $2.6 million licensing agreement
with Biomet Biologics, Inc., a subsidiary of Biomet, Inc., (NASDAQ:
BMET), a global manufacturer and marketer of musculoskeletal
products for surgical and non- surgical therapies.
Under the terms of the agreement, Cytomedix will receive a total
of $2.6 million via an immediate payment of $1.4 million and
$100,000 each quarter for the next three years. Cytomedix will
also receive from Biomet royalty-free licenses to certain Biomet
patents related to platelet gel products. In exchange for these
payments and patent licenses, Cytomedix has granted to Biomet
a worldwide non-exclusive license under its key “Knighton” patent(US
Patent No. 5,165,938 and corresponding patents in other countries)
for all applications of its autologous platelet releasate process
except for use in the chronic, non-healing wound market.
“We are pleased that a highly respected company such as Biomet
is embracing our proprietary technology for its own platelet
gel products. Their confidence in this technology further strengthens
our patent position. Theadditional cash infusion also strengthens
our ability to pursue our strategies aggressively,” stated Kshitij
Mohan, Ph.D., Cytomedix’s Chairman and Chief Executive Officer.
Dr.Mohan noted that Cytomedix is focused on licensing its technology
as well as developing its own products. To date, it has entered
into several licensing agreements, resulting in a growing royalty
income stream for the Company. Cytomedix licenses its autologous
platelet gel technology for a number of applications that include
orthopedic surgery, spinal neurosurgery, bloodseparation, and
blood therapies. The Company’s patented technology utilizes
platelet-rich plasma taken from a patient’s own blood to produce
anautologous plasma gel that can be used by physicians for healing
ofdamaged tissue, such as surgical or chronic wounds.
“This cross-license will provide Cytomedix and Biomet Biologics
with increased opportunities to benefit patients with platelet
concentration technologies," stated Stuart Kleopfer, President
of Biomet Biologics.
ABOUT THE COMPANIES
Cytomedix, Inc. is a biotechnology company specializing
in processes and products derived from autologous platelet releasates
for uses in the treatment of wounds and other applications.
The current offering is AutoloGel™System, a process that utilizes
an autologous platelet gel composed of multiple growth factors
and fibrin matrix. The Company has announced favorable results
from its blinded, prospective, multi-center clinical trial on
the use of its technology in healing diabetic foot ulcers and
has submitted a 510(k) application for marketing clearance for
a new product to the FDA seeking specific labeled indications
for the healing of chronic wounds. Additional information regarding
Cytomedix is available at: http://www.cytomedix.com
Biomet, Inc. and its subsidiaries design, manufacture
and market products used primarily by musculoskeletal medical
specialists in both surgical and non-surgical therapy. The Company's
product portfolio encompasses reconstructive products, including
orthopedic joint replacement devices, bone cements and accessories,
and dental reconstructive implants; fixation products, including
electrical bone growth stimulators, internal and external orthopedic
fixation devices, craniomaxillofacial implants and bone substitute
materials; spinal products, including spinal stimulation devices,
spinal hardware and orthobiologics; and other products, such
as arthroscopy products and soft goods and bracing products.
Headquartered in Warsaw, Indiana, Biomet and its subsidiaries
currently distribute products in more than 100 countries.
SAFE HARBOR STATEMENT
Statements contained in this press release not relating to historical
facts are forward-looking statements that are intended to fall
within the safe harbor rule for such statements under the Private
Securities Litigation Reform Act of 1995. The information contained
in the forward-looking statements is inherently uncertain, and
Cytomedix's actual results may differ materially due to a number
of factors, many of which are beyond Cytomedix's ability to
predict or control, including among others, the success of new
sales initiatives, governmental regulation, acceptance by the
medical community and competition. There is no guarantee that
the FDA will complete its review of the Company’s 510(k) submission
for a specific wound healing indication within any estimated
timeframe, or that the FDA will fully agree with the Company
in the interpretation of the data or the regulatory pathway
and provide marketing clearance. Further, even assuming the
FDA grants the Company’s request for marketing clearance, there
is no guarantee that the Company will receive Medicare reimbursement
for its product; the Company’s marketing efforts will be successful;
or that it will be able to achieve its other strategic goals.
There is also no guarantee that the Company’s current capitalization
will be sufficient to attain its goals or that future funding
will be available to the Company on acceptable terms. These
forward-looking statements are subject to known and unknown
risks and uncertainties that could cause actual events to differ
from the forwardlooking statements. More information about some
of these risks and uncertainties may be found in the reports
filed with the Securities and Exchange Commission by Cytomedix,
Inc. Except as is expressly required by the federal securities
laws, Cytomedix 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: Cytomedix, Inc.
The Wall Street Group, Inc.
Ron Stabiner
(212) 888-4848 |
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