Orteq Sports Medicine, a London, UK-based medical device company specializing in the field of biodegradable polymer technology for meniscus repair, has entered into a manufacturing agreement with and received a minority equity investment from regenerative medicine company Kensey Nash Corporation (Nasdaq: KNSY).
Established in 2005 Orteq created Actifit®, a biocompatible synthetic meniscal scaffold offering sports medicine surgeons a new arthroscopic option for the treatment of irreparable partial meniscal tears.
The company expects to receive FDA approval to start its clinical trial in the U.S. in 2011. The product received its CE Mark approval in 2008 and is currently available throughout Europe.
The FDA approval of the U.S. clinical trial will enable an additional $1m investment in Orteq, which will, on a cumulative basis, total approximately $5m. It also includes the exclusive worldwide manufacturing rights and represents an approximate 10% ownership in Orteq.
Under the terms of the manufacturing agreement, Kensey Nash will receive a transfer price and royalties.
Commenting on the transaction, Dianne Blanco, CEO of Orteq, said: “The Kensey Nash team brings us world-class expertise to manufacturing and developing safe, effective and innovative medical devices for our customers, sports medicine surgeons”.
The company has manufacturing and R&D facilities in Groningen, the Netherlands.