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Gensci files antitrust case against Osteotech.

GenSci Regeneration Sciences, Inc. (Toronto, Canada) announced that its wholly owned subsidiary, GenSci OrthoBiologics, Inc. (Irvine, CA), an innovator in bone regeneration bioimplant products, filed an antitrust suit against Osteotech, Inc. (Eatontown, NJ) in federal district court in Los Angeles. The complaint accuses Osteotech of monopolization, attempted monopolization, monopoly leveraging, and unlawful exclusive dealing in violation of Sections 1 and 2 of the federal Sherman Antitrust Act and Section 3 of the federal Clayton Act.

GenSci OrthoBiologics' suit alleges that Osteotech is leveraging its position as the leading processor of human tissue to control the related market for osteogenic bone implants. The complaint also alleges unfair competition in violation of California Business and Professions Code Section 17200. James M. DeMesa, MD, chief executive officer of GenSci OrthoBiologics, said, "the company decided to go on the offensive against Osteotech because, in addition to the previous complaints of patent infringement and tortious interference, Osteotech is using monopolistic, bully tactics to prevent distribution of a competing, superior product.

This does not serve the public or patients, and the time has come to put an end to this conduct. It is evident that Osteotech is attempting to use its position to harm our company and other potential competitors in the rapidly growing orthobiologics market. This is different from previous filings, and we seek treble damages and an injunction to halt Osteotech's attempts to stifle competition."

The suit also alleges that Osteotech has attempted to stifle GenSci OrthoBiologics' entry into the rapidly expanding osteogenic products market by (a) initiating baseless patent infringement litigation against GenSci OrthoBiologics products, (b) signing illegal exclusive deals for tissue with tissue banks like the American Red Cross in an attempt to deny GenSci OrthoBiologics access to demineralized bone necessary for its products, (c) making false and disparaging statements to the public and to the medical profession about GenSci OrthoBiologics products, and (d) threatening litigation against independent representatives of GenSci OrthoBiologics products and against tissue banks supplying demineralized bone to GenSci OrthoBiologics, all in an attempt to drive GenSci OrthoBiologics from the bone implant market.

Demineralized bone implants allow bone-forming proteins to be delivered to a site in the patient's body to facilitate regeneration of bone. GenSci OrthoBiologics states that its innovative bone bioimplant products DynaGraft Matrix, DynaGraft Gel, and DynaGraft Putty provide superior containment for osteogenic proteins compared to Osteotech's older, competing products. Demineralized bone implants are being used with increasing frequency for spinal surgery and for other medical and dental applications.

GenSci OrthoBiologics focuses on innovative treatments for musculoskeletal (human bone and soft tissue) repair, reconstruction and regeneration, one of the fastest-growing areas in orthopedics. The company designs, develops, manufactures, and markets biotechnology products in the areas of orthopedics, neurosurgery and oral maxillofacial surgery
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Comment:Gensci files antitrust case against Osteotech.
Publication:BIOTECH Patent News
Article Type:Brief Article
Geographic Code:1USA
Date:Mar 1, 2000
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