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Frost & Sullivan Recognizes ApaTech's Leadership in Orthopedic Biologics
Date:3/18/2009

MOUNTAIN VIEW, Calif., March 19 /PRNewswire/ -- Based on its recent analysis of the device biologics market, Frost & Sullivan recognizes ApaTech with the 2009 North American Frost & Sullivan Company of the Year Award. The device biologics market is one of the most lucrative in the medical device industry. Though relatively new, the field has already experienced periods of breakthrough innovation as evidenced in ApaTech's products.

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Cutting edge research by ApaTech has introduced the revolutionary new class of bone graft substitute called Actifuse, which is based on silicated calcium phosphate. This development is a definitive factor in the growth and success of this company, which is driven by a commitment to the progress of orthopedic biologics. ApaTech has achieved this through clear product differentiation strategies and sound marketing tactics, addressing key market issues.

"ApaTech is set to build on a very strong base it has established in the advanced geographies, and as cash-rich medical markets increase, revenue growth and consolidation of market share are inevitable," says Frost & Sullivan Industry Analyst, Aarti Shetty.

Traditional autogenous grafts, or autografts, were widely considered the "gold standard" among bone graft materials. Despite the material being transplanted from the same individual, complications and pain at the affected site have been common. The clinical effectiveness of autografts is considered the primary reason for their wide acceptance. But improved synthetic materials treated with sophisticated methods for increasing biological activity, have the added advantage of avoiding a secondary procedure, and considerably eliminating the risks involved with surgery. In particular calcium phosphates have emerged as the alternative of choice, due to their ability to closely mimic bone characteristics in terms of chemical nature and structural stability.

ApaTech's Actifuse is a new class of synthetic bone graft and is an exceptional bone graft material. Silicate ions are used to selectively replace phosphate groups in the calcium phosphate crystal lattice. This new material accelerates the formation of bone. The resultant bone composite structure contains greater amount of natural bone as compared to traditional synthetic graft material. The silicate substituted calcium phosphate material also displays excellent porosity at all levels, allowing for natural networking of capillaries and bone matter during formation. Actifuse combines osteoconductive and osteo-stimulatory activities, making it suitable for a wide range of orthopedic and spinal applications.

"Improvements in clinical outcomes and patient comfort after Actifuse-based procedures have boosted its reputation considerably, and the technology is used globally for spinal fusions, joint reconstruction, trauma and voids induced by bone tumors," notes Shetty. "ApaTech's first bone graft substitute ApaPore has also been a successful offering, available in a range of porosities each customized according to individual surgical applications and the company is building on its successes through relentless study of improved materials and techniques."

For instance, complex anatomy has sometimes required bone graft materials to be formable, while retaining their core regenerative characteristics. Actifuse Shape is the first product to deliver on this expectation. Launched this year, Actifuse Shape, this formable out of the box fresh solution for bone grafting, was co-developed with Ceremed Inc. It merges the properties of Ceremed's AOC(TM) Biosoluble(TM) Copolymers with Actifuse to create a highly saleable range of products, which lend themselves to easy molding and/or cutting to the contours of the required grafting site. Another product that deserves recognition is Actifuse MIS, an extremely innovative delivery system that facilitates MIS procedures. Current bone grafting delivery methods available in the market fall short in providing the best ease-of-use in MIS procedures. ApaTech does well to satisfy this need, thus displaying its ability to listen to the needs of the market.

With sizeable increases in sales due to increased product acceptance, ApaTech is one of the fastest growing private companies in the UK today, selling its products in 22 major markets around the world. Several line extensions are in development or awaiting regulatory approval, all of which are suitably enhanced to meet demanding surgeon expectations. Due to its roots in academia, the company retains collaborations with research institutes with a view to develop more improved, biologically active synthetic bone grafts, to increase weight-bearing capabilities and to synthesize extendable variants of composite materials.

Overall, Frost & Sullivan recognizes the outstanding qualities that separate ApaTech from competitors in its line of business, and from alternative surgical approaches - both old and new. For its great potential to be a world leader in this area, and as a business at the center of progressive research in the orthopedic biologics space, Frost & Sullivan bestows the 2009 Company of the year Award in the U.S. Device Biologics market on ApaTech.

Each year, Frost & Sullivan presents this award to the company that has demonstrated excellence in terms of business development, competitive strategy, customer satisfaction, and leadership within a particular Frost & Sullivan Industry Research Group (IRG). This award recognizes outstanding management, consistent growth, and the ability to offer high quality products and/or services as well as have a positive social and economic impact on local and national communities. It also highlights exceptional customer service offerings and the expertise to take advantage of market changes by capturing and solidifying market presence, or executing innovative strategies within the existing competitive landscape.

Frost & Sullivan's Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

About ApaTech

ApaTech specializes in producing synthetic bone repair material. It has operations in London, England, Foxborough, USA, and Berlin, Germany, and is a world leader in bone graft technologies, selling its products in 26 countries around the world.

The Company has developed a novel silicate substituted calcium phosphate bone graft material, Actifuse, which underpins the Company's leadership in applying the science of silicon to bone graft technologies. The Company believes that Actifuse is the first of a new class of synthetic bone graft materials that combine osteo-conductive and osteo-stimulatory activities that accelerate bone healing.

ApaTech is backed by international investors, 3i and Healthcor and was recognized as Britain's fastest growing medical technology company in both the 2008 and 2007 Sunday Times Fast Track 100 fastest growing private companies review.

More details can be found at www.apatech.com

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

    Contact:
    Jake Wengroff
    210.247.3806
    jake.wengroff@frost.com


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