J & J report Q2 Double Digit Growth in Market

J & J have released their Q2 2008 financials and present a positive result for the hemostasis market.
Regarding the Ethicon division report "... Ethicon worldwide sales grew operationally by 6% with the U.S. up 7% and sales outside the U.S. growing operationally by 5%. Solid growth in sutures and double-digit growth in homeostasis and mesh products were the major contributors to growth in the quarter."
Commenting on the offer for the Ethicon Woundcare segment by One Equity Partners, Dominic Caruso (CFO) remained tight-lipped saying "If the offer is accepted and the closing conditions are satisfied, the proposed transaction would be expected to close later in 2008. It would be premature to say anything more about this pending transaction at this time. "

Cohera get grant for Tissuglu

Cohera Medical Inc. today announced that it has been selected to receive a Phase II Small Business Innovation Research (SBIR) grant of $1.5 million for the ongoing development of TissuGlu, a novel surgical adhesive for application in plastic surgery.
The Phase II SBIR grant, awarded by the National Institutes of Health (NIH), will fund work to finalize the pre-clinical testing that will support submission of an Investigational Device Exemption (IDE) to the Food and Drug Administration (FDA) for approval to initiate human clinical trials. In the second year of the award, human clinical trials will be initiated to establish the product's safety and efficacy.
"Cohera is honored to receive this prestigious and selective award in the current highly competitive environment," said Patrick Daly, president and CEO of Cohera Medical. "Through this award, the NIH acknowledges the innovative nature of Cohera's technology as well as the robust commercial potential of TissuGlu. Our ongoing plans for TissuGlu seek to establish its safety and efficacy as a surgical adhesive to reduce fluid accumulation and the need for drains after surgery. The grant follows the successful completion of the Phase I SBIR project, which established the efficacy of the product formulation and the dispenser device design in preliminary studies."

Effect of Fibrin Sealant on Drain Output and Duration of Hospitalization

Objective. To determine if fibrin sealant can decrease postoperative drain output and length of stay (LOS) after multilevel anterior cervical fusions.
Summary of Background Data. Despite careful hemostasis, bleeding after anterior cervical fusion can occur and may be life threatening. Although fibrin sealants are commonly used for hemostasis, no studies have been published on the efficacy of these products in achieving hemostasis after anterior cervical surgery.
Conclusion. Application of fibrin sealant at the end of multilevel anterior cervical fusion can significantly decrease postoperative drain output and LOS.
Abstract HERE

Free Hemostasis Ebook Resource

This 2004 handbook is designed to be a resource for both the common and uncommon hemostatic problems that health care providers often face in clinical practice. Currently there is no practical up-to-date book to help the clinician with these patients. The handbook was written to offer a practical guide to recognizing, diagnosing, and managing theses patients. One of the most remarkable areas of medicine in the last ten to fifteen years is the revolution in thrombotic diseases. This includes the introduction of low molecular weight heparins, thrombolytic therapy, and the recognition of the hypercoagulable states. A large portion of this book is dedicated to the thrombotic disorders and their therapy. It's a free and safe download via adrive HERE
Another useful website is available HERE

Consultancy hired by Omrix to Assess Fibrin Patch

Omrix, as you know are conducting a trial for a fibrin pad, which at a selling point of $500 will enter the market 2008 with US unit sales of 20,853 capturing 20% of the market share (according to the 2005 un-updated report at Omrix website, link below). This is expected to grow to a peak of 70% of the market by 2013.
While EMS and military use is apparently not the main focus for sales, it appears the US market is the main target further aimed at "less price sensitive" surgeons.
I am sure Ethicon must be preparing for a mighty unveiling and market entry, still one wonders whats going on with this talk of J&J woundcare sale? For Ethicon the Fibrin pad is probably a good strategy for moving some of that human sourced Evithrom (another Omrix thrombin product). As the recently funded $100 million for Zymogenetics with their recombinant product recothrom hits the stage.
Patch revenues are estimated to total over half a billion dollars within 10 years of launch. Further figures mentioned estimate the European market at 50% of the US and the ROW at 45% of the US market. Similar growth is anticipated in Europe and ROW as Stateside.
The full Pdf is available at the Omrix site or HERE is a link.

Closure Medical not part of J&J woundcare sale

Johnson & Johnson's plans to sell its professional wound care business won't affect Raleigh-based Closure Medical Corp. Closure Medical, which has about 120 workers, became part of J&J's Ethicon subsidiary in 2005 after agreeing to a $370 million takeover. Closure produces Dermabond and other surgical glues. Ethicon announced Tuesday that its unit that produces dressings for wounds is being acquired by a private equity firm, One Equity Partners, for an undisclosed price. But its wound closure business, which includes Closure, isn't part of that deal, said Ethicon spokeswoman Jackie Russo-Jankewicz.
In 2007 the Professional Wound Care business had annual sales of about $270 million but terms of the financial transaction have not been disclosed.
Brands included in the Professional Wound Care product portfolio include:

• PROMOGRAN® Matrix Wound Dressing;
• TIELLE® Hydropolymer Dressing;
• REGRANEX® (becaplermin) Gel 0.01%, a prescription treatment for lower extremity diabetic ulcers; and
• A portfolio of general wound care products.

Omrix/Ethicon Fibrin Pad Trial

Omrix Biopharmaceuticals, Inc. (“Omrix” or the “Company”) (NASDAQ: OMRI) announced today that it has enrolled its first patient in a Phase II clinical trial in Israel for its Fibrin Pad product candidate. This is the first clinical trial that will evaluate the Fibrin Pad’s performance in surgery where severe bleeding is present and the product is applied directly onto a solid organ. The Phase II clinical trial in Israel is being conducted simultaneously with the Phase II clinical trial in the U.S., which commenced on March 27, 2008 and is under an Investigational New Drug (IND) application that was filed with the Food and Drug Administration (FDA) in November 2007.
The Fibrin Pad is a breakthrough convergence product candidate comprised of biological components in a biodegradable device. In collaboration with ETHICON, INC., a Johnson & Johnson company, the Fibrin Pad is being developed for the management and rapid control of mild, moderate and severe bleeding.

Johnson & Johnson is considering selling its wound-care business

Johnson & Johnson is considering selling its wound-care business to a private equity group, One Equity Partners. I don't think Johnson & Johnson's investors should really care one way or another; the unit's $270 million in sales last year made up less than 1% of Johnson & Johnson's revenue. But investors in picking Omrix Biopharmaceuticals should pay very close attention to the deal.
Johnson & Johnson's wound-management division markets all of Omrix's biosurgical products, and the two are also working together to develop a fibrin patch that combines a physical barrier with a biologically active component to stop bleeding.
The health-care conglomerate has until Aug. 22 to decide whether it will accept the offer for an undisclosed amount of money. (You can get away with these types of vague press releases when you're as large as Johnson & Johnson.)
Unsurprisingly, there's not quite enough information in the press releases and 10-Ks to know exactly what will happen, but let's check out the possibilities:

• Johnson & Johnson retains the right to sell Omrix's products, even though it's selling off its wound management business. That doesn't sound like the best option for Omrix, since having the sales reps hocking related wares likely helps move Omrix's own products.
• The partnership transfers to the new owners unchanged. This would be a big unknown for Omrix; One Equity could provide additional support for Omrix's products, but the backing of Johnson & Johnson sure sounds a lot better.
• A change in ownership allows Omrix to break out of the partnership. This could be an advantage to Omrix, if it can get a better deal from another company that sells wound management products, like Kinetic Concepts or Covidien.

Johnson & Johnson hasn't been doing terribly well against ZymoGenetics and King Pharmaceuticals in the battle of the thrombins since Omrix's version came on the market last year. But it has been doing a good job pushing Omrix's Evicel -- its fibrin sealant used to stop surgical bleeding. If J&J does decide to bid Omrix adieu, it'll likely do so with mixed feelings.

Source: Motley Fool

ZymoGenetics Secures $100 Million Funding Commitment

SEATTLE--(BUSINESS WIRE)--ZymoGenetics, Inc. (NASDAQ:ZGEN), today announced that it has received a $100 million funding commitment from Deerfield Management, a leading healthcare investment organization and a significant ZymoGenetics' shareholder. The funds can be drawn at any time over the next 18 months at ZymoGenetics’ discretion. Funds drawn, together with accrued interest, will be repayable five years from entering into the funding arrangement and can be repaid without penalty at any time at the company’s sole discretion.

“This transaction significantly increases our financial strength and provides capital that we’ll use to build our RECOTHROM® business, including the potential development of RECOTHROM line extension products,” said Bruce L.A. Carter, Ph.D., chief executive officer of ZymoGenetics. “We’re pleased with this vote of confidence from Deerfield, a highly knowledgeable and successful healthcare investment firm.”

Under the terms of the arrangement, Deerfield has committed $100 million that can be drawn by ZymoGenetics in $25.0 million tranches. Each tranche will entitle Deerfield to a royalty equal to 2% of RECOTHROM net sales. In addition, ZymoGenetics will issue Deerfield 1.5 million warrants exercisable at $10.34 at the time of the first draw and 1.0 million warrants upon each subsequent draw exercisable at a 25% premium to the average sale price for a previous 15-day period. All warrants will have a 6 year term and the company has agreed to register with the Securities and Exchange Commission the common stock issuable under the warrants. Interest will accrue on drawn capital at a compounded rate of 4.9% and be due along with outstanding principal in June 2013, subject to acceleration in specified circumstances. ZymoGenetics can repay borrowed amounts in whole or in part at any time, without penalty, and all associated interest and royalty obligations will cease upon repayment. Deerfield received a $1 million transaction fee upon entering into the arrangement.

“We believe that this transaction with Deerfield is structured to benefit our shareholders in several ways,” said James Johnson, chief financial officer of ZymoGenetics. “ZymoGenetics gains access to a significant amount of capital at a competitive cost; there is flexibility in amount, timing and duration of borrowings; and shareholder dilution is minimized. Assuming success in building the market for RECOTHROM and in carrying out our business development objectives, this added capital should fund our company well into the future.”
A live webcast of the presentation can be accessed by going to: www.zymogenetics.com. The webcast will be archived for 30 days.

Nanotech in the O.R.

Arch Therapeutics CEO Terry Norchi talks about the company's technology and the challenges of bringing a new product for surgeons to the market.