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Number of Apligraf Users Shows Strongest Growth to Date; New Record Also Reached in Monthly Unit Sales and in Growth of Re-ordering Centers.

CANTON, Mass.--(BW HealthWire)--July 6, 1999--

Organogenesis Inc. (AMEX:ORG) today announced that all three benchmarks of Apligraf(R) market acceptance - growth in users, growth in repeat users and level of unit sales - reached record levels in June 1999. More US medical centers started using Apligraf in June 1999 than in any previous month: the number of U.S. medical centers that have ordered Apligraf reached 757 in June, up from 674 in May. This increase was greater than anticipated as adoption of new medical products often slows during summer months, as does product usage. June 1999 also had the largest increase to date in the number of centers that have re-ordered the product: increasing to 427 in June from 369 in May. Commercial unit sales of Apligraf were the highest level to date in June, reaching 615 units compared with 552 units in May. Apligraf is marketed by Novartis Pharmaceuticals Corporation. -0-

 # Sites Re-Ordering
 Month # Sites Ordering Apligraf(1) Apligraf(2)

 June 1998 8 2

 July 1998 38 9

 Aug. 1998 80 24

 Sept. 1998 135 56

 Oct. 1998 192 94

 Nov. 1998 264 130

 Dec. 1998 316 170

 Jan. 1999 384 203

 Feb. 1999 455 239

 Mar. 1999 523 280

 Apr. 1999 603 321

 May 1999 674 369

 June 1999 757 427

 (1)Have ordered Apligraf one or more times since launch
 (2)Have re-ordered Apligraf one or more times since launch

 Apligraf Commercial Units

 Time Period Month Quarter

 3Q98 548

 4Q98 1070

 1Q99 1585

 April 1999 604

 May 1999 552

 June 1999 615 1771

"Apligraf is gaining strong acceptance among the target audience and is performing well clinically," said Alan Tuck, Chief Strategic Officer. "The main hurdle holding back increased usage is the need for more standardized reimbursement for the product. To address this, Novartis and Organogenesis are implementing a multi-pronged approach at both the regional and national levels."

"We are also continuing to achieve fundamental accomplishments with Apligraf. For example, on June 19, the Foot Center at Beth Israel Deaconess Medical Center - formerly the Joslin Foot Center - presented its experience with Apligraf in the treatment of diabetic foot ulcers at the American Diabetes Association national meeting. The BI-Deaconess also featured their findings with Apligraf in a press release issued by this internationally-renowned medical center. And on June 21, approximately 200 clinicians attended the Novartis-supported educational symposium, "New Concepts in the Management of Diabetic Foot Ulcers", that was also held at the ADA meeting.

Like human skin, Apligraf is living, all-natural and bi-layered, with both an upper epidermal and a lower dermal layer. It contains living human skin cells - epidermal keratinocytes and dermal fibroblasts. The keratinocytes are differentiated to form the strata of the human epidermis, including the outer stratum corneum. Unlike human skin, Apligraf does not contain structures such as blood vessels, hair follicles and sweat glands. Novartis Pharma AG has global Apligraf marketing rights.

Organogenesis Inc. designs, develops and manufactures medical products containing living cells and/or natural connective tissue. The Company's product development focus includes living tissue replacements, cell-based organ assist devices and other tissue-engineered products. In addition to Apligraf, the pipeline includes VITRIX(tm) living soft tissue replacement, a bioartificial liver and a vascular graft.

Statements in this press release which are not historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. There can be no assurance as to the rate of growth of Apligraf sales or of gaining standardized reimbursement for Apligraf. Apligraf(R) is a registered trademark of Novartis.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 6, 1999
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