Osteotech signs tissue supply agreement with CTS

Nov 4 2009

Osteotech, Inc. (Nasdaq: OSTE), a leader in the emerging field of biologic products for regenerative healing, announced today that it entered into a multi-year tissue supply agreement with Community Tissue Services (CTS), with an initial term spanning 10 years. This new agreement replaces an existing contract between the two companies that would have expired in 2011.

Under the terms of the agreement, CTS will supply Osteotech with a specific number of whole donors and cortical shafts on a monthly basis based upon periodic forecast requirements and available tissue supply. This new agreement expires in December 2019 and includes one five year renewal term and subsequent two year renewal terms subject to six month cancellation clauses.

CTS is one of the largest tissue banks in the United States, distributing nearly 10% of all tissue grafts in the U.S. and is an accredited member of the American Association of Tissue Banks. CTS is ISO 9001:2000 Registered and is firmly committed to providing the highest quality of tissues for transplantation.

"We are excited to expand our relationship with one of the leading tissue banks in the United States," said Sam Owusu-Akyaw, Osteotech's President and Chief Executive Officer. "CTS has a commitment to respecting the gift of life to enhance patient outcomes which is wholly in-line with Osteotech's mission to leverage our technology into life-changing biologic products."

Mr. Owusu-Akyaw continued, "Our goal is to be a vanguard in the development of novel, first-in-class bio-materials that will support and heighten advances in surgical techniques and patient outcomes through the use of innovative procedure-specific biologic products. Through our patented technology platforms, we have successfully begun to introduce a wide variety of advanced biologics with unique regenerative qualities and healing properties."

"At CTS, we strive to be on the forefront of new graft development and we believe Osteotech's commitment to developing new technology that can leverage the gift of life supports our goal. We look forward to our expanded relationship with Osteotech," said David Smith, M.D., Chief Executive Officer of Community Tissue Services.