Organogenesis moves into amniotic tissue market with acquisition of Nutech Medical

March 29, 2017 – 8:18 AM | By Andrea Gonzalez | No comments yet

By Omar Ford, Staff Writer

Organogenesis Inc. is set to acquire Nutech Medical Inc. a private company and supplier of tissue products used in spinal and orthopedic surgeries. Financial details surrounding the deal were not disclosed.

Canton, Mass.-based Organogenesis has been waiting to enter the amniotic tissue market, which led to it picking up Nutech Medical.

“The acquisition expands Organogenesis’ product profile into the surgical, orthopedic, spine and amniotic wound care markets and unites two pioneering companies, each with decades of experience in bringing quality biologics products to patients around the world,” Gary Gillheeney, president and CEO of Organogenesis, told Medical Device Daily. “The acquisition of Nutech Medical enables Organogenesis to drive significant growth in both the advanced wound care and surgical biologics markets, through our combined R&D programs and distribution networks.”

Birmingham, Ala.-based Nutech Medical will continue existing operations as a new division of Organogenesis focused on the surgical biologics arena. Nutech will continue to develop and distribute its product line from existing facilities in Birmingham with plans to grow its existing surgical sales network of about 150 representatives. Nutech’s president and CEO Howard Walthall will take the role of president for Organogenesis’ surgical division and as senior vice president for strategy and development for Organogenesis.

Nutech Medical’s portfolio includes an amniotic product line for both soft tissue and bone repair, used in multiple markets including wound healing and surgery, Walthall told Medical Device Daily.

He added, “Nutech has four randomized controlled trials and nine other clinical trials currently ongoing to demonstrate the benefits of its products across several applications.”

Nutech’s product line includes, Affinity, a fresh amniotic allograft; Nushield, a dehydrated terminally sterilized allograft that comprises both the amnion and chorion layers; and Nucel and Renu, cryopreserved allografts derived from human amnion and amniotic fluid, as well as other complementary products. In addition, the Nutech’s Bioloc process preserves the native structure of the amnion and chorion membranes. Its Allofresh process allows for the fresh hypothermic storage of amniotic tissues.

It has been a busy week for Organogenesis. The company also reported it was launching its Puraply Antimicrobial clinical research program, which will comprise multiple studies and a nationwide patient registry. Puraply is intended for the management of both acute and chronic wounds; and as an effective barrier to resist microbial colonization within the wound dressing and reduce microbes penetrating through the dressing.

Organogenesis was founded in 1985 as a Massachusetts Institute of Technology spin-off. The company went public a year after it was founded, but resumed its status as a private firm back in 2002.

Nearly a year ago, Organogenesis raised about $30 million in capital from existing investors to support a significant expansion of the company’s commercial operations, sales force, Puraply product line and new product development in the wound care and surgical fields. (See Medical Device Daily, April 15, 2016.)

The company has faced off against several competitors in the regenerative medicine space. Mimedx is one of its chief rivals, and the two have crossed paths in the courts. Two years ago, the Marietta, Ga.-based company filed a federal lawsuit alleging Organogenesis engaged in malicious actions that “tortiously interfered” with its contractual relationship selling into the Department of Veteran’s Affairs. (See Medical Device Daily, Jan. 5, 2015.)

In May 2014, Mimedx reported that it had declined to participate in an adjudication of an advertising challenge filed with the National Advertising Division of the Council of Better Business Bureaus. That challenge was initiated by Organogenesis. Specifically, the company claimed that by comparing Mimedx’s allografts to Organogenesis’ products, Mimedx implied that its allografts had been FDA approved through the same premarket approval process as Organogenesis products. Organogenesis alleged at that time that only PMA-approved products may be marketed to promote wound healing, but Mimedx argued against both allegations.

Mimedx’s Epifix allograft competes with the Apligraf and Dermagraft skin substitutes made by Organogenesis.

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