Advanced Biohealing announces growth strategy to expand its product line

Sep 24 2009

Advanced BioHealing, Inc. (ABH), a leader in commercializing the promise of regenerative medicine, announced a strategic growth plan designed to continue the transformation of this former start-up into the leading international regenerative medicine company. Since 2006, ABH has grown revenue from zero to a projected $80 million by year-end 2009 and today employs more than 200 professionals. The Company manufactures and markets Dermagraft®, a bio-engineered skin substitute that repairs tissue damaged by disease or injury and supports the body’s natural healing process in patients with diabetic foot ulcers.

To spur future growth, executive management has outlined a growth strategy to leverage current successes, develop its international presence, address new applications, and expand its product line.

“Advanced BioHealing has a significant opportunity in the field of regenerative medicine,” said Kevin Rakin, Chairman and Chief Executive Officer. “Having proven the viability of our technology and having achieved commercial success for our lead product in treating diabetic foot ulcers, we are now looking at additional applications and new growth markets to pursue.”

Rakin continued, “For many years, we and others in our industry have touted the significance of living cell technologies and regenerative medicine. While progress has been made on the scientific and medical fronts, only a handful of companies have been able to execute a successful commercialization strategy. ABH has been at the forefront. Today we stand among the best in the world at commercializing a living cell technology and have ambitious plans for continued domestic and international growth.”

The ABH growth strategy addresses specific initiatives:

• Continue to expand Dermagraft sales. An estimated 23.6 million Americans suffer from diabetes, and of these 15 to 25 percent will develop a foot ulcer in their lifetime. Yet incidence of the disease extends far beyond our country’s borders, with an estimated 171 million diabetics worldwide. ABH will continue serving the U.S. by expanding current market share for Dermagraft, while seeking regulatory approval and commercial partnerships in other markets.

• Extend product use for multiple indications. In May 2009, ABH began patient recruitment for the largest venous leg ulcer (VLU) clinical trial ever conducted. The pivotal trial, which will be run in eight countries with more than 400 patients, will test the efficacy of Dermagraft for treatment of VLUs, and could double the Company’s market potential. At the same time, based on the proven clinical efficacy of Dermagraft to heal chronic diabetic foot ulcers, ABH is exploring additional applications for the technology, including a range of common soft tissue injuries such as rotator cuff tears and Achilles tendon ruptures.
• Diversify Product Portfolio. ABH has built an infrastructure that lends itself to commercializing additional products. Beyond Dermagraft, ABH is developing a business strategy to launch TransCyte®, an FDA-approved temporary skin substitute indicated for full and partial thickness burns. ABH is also engaging in business development discussions regarding additional product opportunities.

ABH continues to build its sales and marketing infrastructure by recruiting top sales professionals from inside the pharmaceutical and medical device industries. The Company is also working with industry peers to promote regulatory, research, and reimbursement policies that foster innovation in regenerative medicine as a charter member of the new Alliance for Regenerative Medicine. In addition, ABH is rolling out a grassroots, community education program to build relationships and educate at-risk populations of senior citizens and diabetics.

The Company has initiated a corporate identity program designed to position ABH as a leading regenerative medicine company with demonstrated success in commercialization. A new logo, tagline, web site, and public relations campaign are in place, and new animations and videos will communicate the value of ABH and Dermagraft.