Healthcare Industry News: RTI Biologics
News Release - September 7, 2010
RTI Biologics and Zimmer Dental Enter Distribution Agreement for Global Dental Biologic Implants
RTI Modifies Annual GuidanceALACHUA, Fla.--(Healthcare Sales & Marketing Network)--RTI Biologics Inc. (RTI) (Nasdaq: RTIX ), a leading provider of orthopedic and other biologic implants, announced today the signing of an exclusive, 10-year distribution agreement with Zimmer Dental Inc. for biologic implants for the dental market worldwide.
Under the new agreement, which is effective Sept. 30, 2010, RTI will supply sterilized allograft and xenograft implants for an agreed upon transfer fee, as opposed to the marketing fee structure of the companies’ previous agreement. Zimmer will be responsible for worldwide marketing and distribution of the biologic implants for use in dental applications.
The new agreement includes an initial payment, as well as annual payments for the length of the contract, to secure exclusive distribution rights in the dental market. Additionally, Zimmer has committed to annual order minimums to preserve exclusivity.
“We are very pleased to continue our long-standing relationship with Zimmer, a leader in the dental market,” said Brian K. Hutchison, RTI chairman and CEO. “We remain committed to delivering excellent, long-term service and safe biologic implants to Zimmer for use in dental surgeries. The financial structure of the new agreement will improve operating margins for RTI in the dental segment of our business and will immediately strengthen our financial position.”
2010 Outlook
The company is modifying its 2010 annual financial guidance to reflect the impact on revenues from the terms of the new dental agreement, as well as increased pricing pressures and slowdown in procedure volumes in certain of its markets, primarily the spinal market. The company now expects 2010 revenues in the range of $165 million to $168 million and full year earnings per fully diluted share to be in the range of $0.10 to $0.12, based on 55.0 million fully diluted shares outstanding.
About RTI Biologics Inc.
RTI Biologics Inc. is a leading provider of sterile biologic implants for surgeries around the world with a commitment to advancing science, safety and innovation. RTI prepares human donated tissue and bovine tissue for transplantation through extensive testing and screening, precision shaping and using proprietary, validated processes. These allograft and xenograft implants are used in orthopedic, dental, hernia and other specialty surgeries.
RTI’s innovations continuously raise the bar of science and safety for biologics – from being the first company to offer precision-tooled bone implants and assembled technology to maximize each gift of donation, to inventing validated sterilization processes that include viral inactivation steps. Two such processes – the BioCleanse® Tissue Sterilization Process and the Tutoplast® Tissue Sterilization Process – have a combined record of more than two million implants distributed with zero incidence of allograft-associated infection. These processes have been validated by tissue type to inactivate or remove viruses, bacteria, fungi and spores from the tissue while maintaining biocompatibility and functionality.
RTI’s worldwide corporate headquarters are located in Alachua, Fla., with international locations in Germany and France. The company is accredited by the American Association of Tissue Banks in the United States.
Forward Looking Statement
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations, estimates and projections about our industry, our management's beliefs and certain assumptions made by our management. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, except for historical information, any statements made in this communication about anticipated financial results, growth rates, new product introductions, future operational improvements and results or regulatory approvals or changes to agreements with distributors also are forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in public filings with the U.S. Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the company's SEC filings may be obtained by contacting the company or the SEC or by visiting RTI's website at www.rtix.com or the SEC's website at www.sec.gov.
Source: RTI Biologics
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