With an estimated 2 million sterile allografts distributed and zero incidence of allograft-associated infection, RTI Biologics Inc. (Alachua, FL) has established itself as a company dedicated to safety and patient quality. According to the company, it was also the first to provide precision-tooled bone implants and assembled technology to be used with its grafts.
Within orthopaedics, the most common application of biologics is in allografts. RTI’s sterile allograft and xeno-graft implants are used in spine, sports medicine, orthopaedic, dental, and other surgical specialties. The company differentiates itself from the competition with fully validated sterilization processes—the BioCleanse and Tutoplast—that include viral inactivation steps. These processes address donor-to-recipient-disease transmission risk and preserve tissue strength and biocompatibility.
RTI is also dedicated to supporting and educating donor families and the community through its affiliated organization, RTI Donor Services. Accredited by the American Association of Tissue Banks, RTI Donor Services works with RTI Biologics to promote tissue implant research.
The active and aging demographic, along with a preference among surgeons and patients to repair, not replace, damaged tissue, are among the factors driving the regenerative medicine market. They present a $2 billion opportunity that RTI plans to leverage through new technology development. The company’s 2010 licensing agreement with Athersys gives RTI access to the fastest-growing (33% growth rate) segment of the bone graft substitutes market—orthopaedic stem cell products. It allows RTI to use Athersys’s multipotent adult progenitor cell (MAPC) technology, which isolates and preserves cells in cadaveric bone tissue.
Last year, RTI’s revenue reached a record total of $166.2 million, which was a 1% increase over 2009’s revenue. Through its latest round of agreements, the company has diversified distribution and positioned itself as a strong participant in the global regenerative medicine market. “We expect that revenues in 2011 will be driven by continued growth in our direct distribution group as well as new product introductions. While we are focused on controlling expenses, we are investing in initiatives that we anticipate will accelerate our future revenue growth and support our new product development,” says Brian Hutchison, CEO of RTI Biologics.
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RTI Biologics earned $40.6 million in revenues during Q1 2011, exceeding the company’s guidance of $38–39 million.
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Focus Going Forward
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Participate in large and growing markets.
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Grow direct distribution efforts by working with industry-leading distributors.
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Anticipate availability of multipotent adult progenitor cell (MAPC) technology-based biologic implants around first half of 2012.
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Identify areas of opportunity that can accelerate profitability and cash flow for the next several years.
Highlights
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April 2011: Forms processing agreement with Alphatec Spine to provide company with spinal allograft implants.
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September 2010: Enters into 10-year agreement to supply Zimmer Dental with implants for dental applications.
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February 2010: Donates Matrix HD allografts to treat the victims of the earthquake in Haiti.
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September 2009: Receives Gury Company of the Year Award for advancing Florida’s bioscience industry.
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February 2008: RTI Biologics formed through merger between Regeneration Technologies and Tutogen Medical.
Leadership
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Brian Hutchison, CEO
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Thomas Rose, executive vice president and COO
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Roger Rose, executive vice president and chief commercial officer
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Caroline Hartill, executive vice president and chief scientific officer
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Robert Jordheim, executive vice president and CFO
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