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TWST: What is Regeneration Technologies?
Mr. Hutchison: Regeneration Technologies, Inc., prepares human donated
tissue and animal tissue into precision-shaped biological implants for
use in spinal, orthopedic and other surgeries. RTI began operations in
February 1998 when the University of Florida Tissue Bank Inc.
transferred its allograft processing operations, related equipment and
technologies, distribution arrangements and R&D activities to RTI.
Today, RTI is one of the largest processors of precision-tooled
allografts in the United States. In August 2000 RTI went public, which
helped to fund our extensive R&D activities and the facilities we are in
today. We operate a world class bio pharmaceutical quality manufacturing
or processing facility here in Florida, as well as a small
cardiovascular facility up in Birmingham, Alabama, for preparing heart
valves and vascular tissue for implantation. Right now, there are
approximately 430 employees around the United States, primarily focused
on human allograft, although our recent focus has been transitioning
toward xenograft product offerings ' biologic implants created from
bovine tissue, made possible by our BioCleanse' sterilization
technology. TWST: What historically has been the client space? How is that space
undergoing a change or transition? What's the overall market and its
dynamics like?
Mr. Hutchison: This is an interesting market opportunity. The market
demand is much greater than the supply available, not just from RTI, but
from the entire allograft industry ' we just cannot match the need
that's out there. There are multibillion-dollar markets in all the areas
we serve ' spine, sports medicine, general orthopedic, bone graft
substitutes, and cardiovascular. How we serve each market varies. Since
RTI's inception, we have had an exclusive distribution agreement with
Medtronic Sofamor Danek to distribute our allograft spinal implants. In
sports medicine and general orthopedics, we have our own direct
distribution force. In cardiovascular, we partner with a company called
ATS Medical based in Minneapolis for distribution of our heart valves
and vascular tissue.. Our approach has been to evaluate the needs of
each market and the most effective way to reach surgeons and patients
that need these biologic implants. Based on that evaluation, we either
penetrate the market directly or partner with a large distributor. As
of late, we are in discussions about our xenograft product offering as
to how we'll bring that to market in the spine. That will likely be
through a combination of distribution partners in non-exclusive
relationships. Very recently, we've begun talking about the allograft
market as well, both internationally and domestically, in terms of how
to better meet the needs of the spine market.
Tickers included in this excerpt: RTIX
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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