Healthcare Industry News:  Dermal Filler 

Devices Dermatology

 News Release - April 18, 2008

Artes Medical Announces Operating Cost Reductions in Conjunction with Newly Expanded Sales Force and Marketing Activities for Commercialization of ArteFill

SAN DIEGO--(HSMN NewsFeed)--Artes Medical, Inc. (Nasdaq: ARTE ), a medical technology company whose product ArteFill is the first and only FDA-approved, non-resorbable injectable Dermal Filler for the correction of “smile line” wrinkles, today reported that it has initiated a plan to significantly reduce certain administrative and operating costs to re-align the Company’s overall cost structure to the revenue guidance it provided in March 2008 of $13 million to $16 million for calendar 2008. At the same time, the Company reported that it is continuing to optimize its newly expanded sales and marketing activities to support the U.S. market launch of ArteFill.

“These cost reductions will enable us to re-align our financial resources with our projected range of 2008 revenues and to more sharply focus on growing and developing the market for ArteFill. We believe that our existing funds together with the proceeds from sales of ArteFill will be sufficient to meet our anticipated cash requirements through the first quarter of 2009,” said Christopher J. Reinhard, Executive Chairman of the Board of Directors. Continuing, Mr. Reinhard stated that “Artes Medical is also intensifying its activities related to seeking to acquire or in-license other complementary products and to partner with or acquire companies with products and technologies in the consumer and aesthetic market. Additionally, the Company intends to explore potential opportunities with partners regarding its highly purified collagen and biomaterial manufacturing capabilities.”

“We believe that these activities would enable us to better leverage our expanded sales force, our strong relationships with physician customers, and provide synergies with our e-marketing activities and consumer initiatives, thereby positioning the Company for accelerated revenue growth,” said Diane S. Goostree, President and Chief Executive Officer.

About ArteFill®

ArteFill is the first and only FDA-approved non-resorbable injectable Dermal Filler for the correction of wrinkles known as smile lines or nasolabial folds. The unique microspheres in ArteFill are not absorbed by the body and therefore provide the first-of-its-kind permanent support for long-lasting wrinkle correction in one to two treatments. ArteFill was approved by the FDA in October 2006 based on data from the Company's 12-month controlled, randomized, double-masked, multi-center U.S. clinical trial, which compared outcomes for patients treated with ArteFill with those of patients treated with the leading bovine collagen-based filler. At the 6-month evaluation, which was the primary efficacy evaluation period for the clinical trial, the wrinkle correction in patients treated with ArteFill persisted and showed statistically significant improvement compared to the wrinkle correction in the patients treated with the collagen control, who returned to their pretreatment status. The ArteFill patients were also evaluated one year after treatment, demonstrating continued safety and wrinkle correction.

In December 2007, the Company announced that ArteFill's 5-year safety and efficacy data was disseminated in the peer-reviewed publication Dermatologic Surgery "Filler Issue." This publication addresses the robust, long-term, efficacy and safety profile of ArteFill. This 5-year follow-up study included 145 patients who were treated with ArteFill in the Company's U.S. clinical trial. In addition to demonstrating the safety profile of ArteFill, the study showed statistically significant (p less than 0.001) improvement in patient wrinkle correction five years after the patient's last ArteFill treatment, and a statistically significant (p=0.002) improvement in wrinkle correction at the 5-year point compared to the 6-month evaluation period. As part of the study, physician investigators and patients were asked to provide their assessment of ArteFill treatment. Over 90% of the physician assessments were either "completely successful" or "very successful;" and over 90% of the patient assessments were either "very satisfied" or "satisfied." In March 2007, the Company submitted the data from the study to the FDA for review in order to enhance the product labeling for ArteFill.

An ArteFill Skin Test is required before initial treatment. The most common adverse events associated with ArteFill treatment, similar to those observed with other Dermal Fillers, are lumpiness, persistent swelling or redness and increased sensitivity at the injection site.

ArteFill is a proprietary formulation comprised of polymethylmethacrylate, or PMMA, microspheres and bovine collagen, and is the only PMMA-based injectable product that has been approved by the FDA for the treatment of facial wrinkles. Artes Medical is the sole manufacturer of ArteFill, which is only available in the United States through Artes Medical, and Artes Medical has not entered into distribution or licensing arrangements with any third party for the distribution or sale of ArteFill, or any other PMMA-based Dermal Filler, outside the United States.

About Artes Medical, Inc.

Artes Medical is a medical technology company focused on developing, manufacturing and commercializing a new category of aesthetic injectable products for the dermatology and plastic surgery markets. The Company's initial product, ArteFill, is being marketed to men and women as a treatment option for the correction of nasolabial folds. Additional information about Artes Medical and ArteFill is available at www.artesmedical.com and www.artefill.com.

Forward-Looking Statements

This news release may contain forward-looking statements that are based on the Company's current beliefs and assumptions and on information currently available to its management. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. As a result of these risks, uncertainties and other factors, which include the Company's history of net losses and its need to raise additional funds to support its operations, its reliance on its sole FDA-approved product, ArteFill, its limited experience in commercializing ArteFill, its future receipt of FDA approval to enhance the product label for ArteFill to extend the efficacy period of ArteFill beyond six months, the risk that the Company's revenue projections may prove incorrect because of unexpected difficulty in generating sales and market acceptance of ArteFill and the Company’s ability to successfully complete product in-licensing or partnering transactions, readers are cautioned not to place undue reliance on any forward-looking statements included in this press release. A more extensive set of risks and uncertainties is set forth in the Company's SEC filings available at www.sec.gov. These forward-looking statements represent beliefs and assumptions only as of the date of this news release, and the Company assumes no obligation to update these forward-looking statements publicly, even if new information becomes available in the future.

Artes Medical® and ArteFill® are registered trademarks of Artes Medical, Inc.


Source: Artes Medical

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