ArthroCare and Collagen Team to Distribute Coblation Products for Cosmetic Surgery; Agreement Expands Channel For ArthroCare's Cosmetic Surgery System.SUNNYVALE, Calif.--(BW HealthWire)--Jan. 27, 1999--ArthroCare Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ARTC ARTC Arthrocare Corp (stock symbol) ARTC Australian Rail Track Corporation ARTC Air Route Traffic Control ARTC Association de la Recherche Theatrale au Canada ARTC Andean Root and Tuber Crops ) today announced the signing of a definitive agreement with Collagen Aesthetics, Inc. (NASDAQ:CGEN CGEN Convective Sigmet Generation ) to license, market and distribute ArthroCare's Coblation(TM) based product line for cosmetic, dermatologic and aesthetic surgical applications. Under the terms of the agreement, Collagen becomes the exclusive worldwide distributor of ArthroCare's Cosmetic Surgery cosmetic surgery, plastic surgery for cosmetic purposes, such as the improvement of the appearance of the face by removing wrinkles or reshaping the nose. System to all physicians practicing cosmetic surgery with the exception of certain ear, nose and throat physicians who are currently provided for through ArthroCare's alliance with Xomed. The agreement includes licensing and milestone payments, original equipment manufacturer (OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and ) sales, and royalties on product sales. In addition, Collagen will hold an option to acquire expanded rights should they become available. ArthroCare will maintain responsibility for product development and manufacturing. Specific terms of the agreement were not disclosed. "We are pleased to have Collagen as a marketing partner for ArthroCare's Cosmetic Surgery System because this alliance quickly and efficiently enhances our ability to reach physicians performing cosmetic surgery," said Michael A. Baker Michael Allen Baker (Captain, USN, Ret.) is the International Space Station Program Manager for International and Crew Operations, at NASA's Johnson Space Center. He is responsible for the coordination of program operations, integration and flight crew training and support , ArthroCare's president and chief executive officer. "As we evaluate and refine our diversified commercialization strategy, we continue to focus on establishing relationships with companies whose expertise in specific markets can enhance the potential for rapid product acceptance. We're entering into this partnership with Collagen because it's the right deal at the right time and it makes sense for our business as a whole." Gary Petersmeyer, Collagen's president and chief executive officer said, "We are excited to become the exclusive distributor of the ArthroCare's cosmetic surgery system to the cosmetic and dermatologic surgeons. We believe ArthroCare's proprietary Coblation technology is superior to laser technologies cosmetic surgeons currently use and will afford Collagen a competitive edge in the marketplace." The ArthroCare system, which has been marketed under the VISAGE(TM) brand, is approved domestically for general dermatologic surgery and in Europe for all types of cosmetic surgery, including wrinkle removal. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. the system is undergoing clinical evaluation clinical evaluation Medtalk An evaluation of whether a Pt has symptoms of a disease, is responding to treatment, or is having adverse reactions to therapy for wrinkle removal in a Food and Drug Administration-sanctioned phase II study. ArthroCare has developed a broad technology platform for operating on soft tissue. The technology is based on a patented method of tissue removal, called Coblation technology, that is designed to improve the effectiveness and safety of standard surgical methods. Coblation technology uses radio frequency (RF) energy to remove tissue through a significantly cooler process than is possible with traditional electro- or laser-surgery. Coblation-assisted surgery has the potential to improve operative precision and efficiency compared with many standard surgical techniques and thereby reduce pain and speed recovery. Except for historical information, this press release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, the rate of product acceptance and market penetration, the competitive environment; technological advantages, and risks as detailed from time to time in the company's Securities and Exchange Commission filings, including ArthroCare's Form 10-Q Form 10-Q See 10-Q. for the quarter ended October 4, 1998. Actual results may differ materially from management expectations. ArthroCare Corporation is a medical device company redefining the standard in soft tissue surgery by developing, manufacturing, and marketing patented Coblation(TM) technology that allows surgeons to operate with increased precision and accuracy, with minimal damage to surrounding tissue. The company's systems are being used to perform many types of closed joint surgery, and have recently been introduced for use in cosmetic surgery and ear, nose and throat (ENT ENT ears, nose, and throat (otorhinolaryngology). ENT abbr. ear, nose, and throat ENT ear, nose and throat. ENT Ears, nose & throat; formally, otorhinolaryngology ) surgery. ArthroCare's long-term strategy includes applying its patented platform technology to a broad range of other soft tissue surgical fields including cardiology, urology urology Medical specialty dealing with the urinary system and male reproductive organs. It traces its origin to medieval lithologists, itinerant healers who specialized in surgical removal of bladder stones. , gynecology, and oral and general surgery. The company is headquartered at 595 North Pastoria Avenue, Sunnyvale, California, 94086. ArthroCare's web site can be found at http://www.arthrocare.com. |
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