Healthcare Industry News: bone graft
News Release - June 5, 2007
BioSET Announces Completion of $11 Million Financing to Support Clinical Trial of Synthetic Growth Factor for Spine FusionROCKVILLE, MD--(Healthcare Sales & Marketing Network)--Jun 5, 2007 -- BioSurface Engineering Technologies, Inc.[BioSET] a privately held company developing synthetic peptide growth factors for advanced tissue repair, reported today the completion of an $11 million equity financing. The financing was led by PTV Sciences of Austin, Texas, and was joined by new investors Westfield Capital and Heron Capital. Existing investors participating in the funding include the Vertical Group, EDF Ventures, MB Ventures and New Markets Growth Fund.
Tom Roueche, BioSET President and CEO, commented, "We are certainly very pleased with the high level of interest and confidence expressed by our new and existing investors. This financing will allow us to commence human clinical trials with our lead synthetic B2A growth factor product for spine fusion, and also will permit the company to accelerate the pre-clinical development of additional growth factor mimetics the company has identified."
BioSET's lead product is an osteoinductive bone graft material that is comprised of a proprietary peptide signaling molecule (B2A) coated onto a ceramic bone void filler material. bone graft materials are predominately used in spine fusion procedures, a surgical option for patients with debilitating back pain associated with degenerative disc disease. Industry analysts estimate the U.S. market for growth factor based bone graft products was in excess of $650 million in 2006, growing at 33%.annually. The estimated market in 2006 for all bone substitute materials is approximately $1.4 billion.
BioSET's B2A synthetic peptide was developed utilizing the company's proprietary Receptor Activating Multidomain Peptide technology platform, a technology that has produced a number of native growth factor mimetics. Based on the encouraging results from pre-clinical safety and efficacy studies, BioSET plans to initiate pilot human study of B2A as an alternative to iliac bone graft in 2007. The company expects to file a medical device IDE with the FDA in the coming weeks in anticipation of a larger prospective pivotal study comparing B2A to hip autograft in lumbar spine fusion procedures.
In addition to the B2A bone graft program, BioSET has initiated animal research on F2A, the company's second signaling compound, a synthetic mimetic of basic fibroblast growth factor [FGF2]. FGF2 is a well characterized growth factor that enhances soft tissue repair and has undergone extensive study in numerous soft tissue models. The company is also engaged in early conceptual work to determine the optimal use for its additional pipeline of mimetic growth factors, including synthetic mimetics of platelet derived growth factor (PDGF and vascular endothelial growth factor (VEGF).
About BioSurface Engineering Technologies, Inc.
BioSET is developing proprietary therapeutic peptides as medical devices to improve bone and soft tissue repair. BioSET's synthetic peptides are bioactive mimetics of growth factors that continue to show promising results in studies for the treatment of musculoskeletal, vascular and chronic wound diseases. The company intends to capitalize on the growing interest in drug/device combination products and seeks to initiate studies of these combination products in human clinical trials. For more information, please visit BioSET's website at: www.biosetinc.com
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