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[August 2002]
Ceramic Hydroxyapatite Operation Sold
Osteotech Inc (Eatontown, NJ, USA) has sold the business and assets of its CAM Implants BV operation - located in Leiden in Holland - to a new company formed by investors led by CAM's current managing director. Under the terms of the transactions, the new company will pay an aggregate of US$2.5 million to Osteotech through a US$1 million cash payment (which was made at the closing) and issuance of a non-interest bearing note for US$1.5 million which will be paid over four years commencing in 2003.CAM Implants provides ceramic hydroxyapatite, or HA, and titanium plasma spray coating services to orthopaedic and dental implant companies in Europe. It also manufactures the HA powder used in the plasma spray coating operation and sells the HA powder to implant companies for use in their in-house coating operations. CAM also manufactures and distributes CE-marked HA products that are used as grafting material.
Osteotech stated: "We have sold this operation because it does not fit with our strategic plan of refocusing on the global spinal market with innovative tissue related products".
In the first quarter of 2002, CAM reported revenues of US$495,000 and net income of US$14,000 compared to US$510,000 and US$4,000 respectively in the first quarter of 2001. In the year ended 31 December 2001, CAM reported revenues of US$2.131 million and a net loss of US$336,000.
ENDS