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$4 Million Allotted to Complete Pivotal Clinical Study for New Osteoarthritis Treatment

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By News Release • www.ProHealth.com • April 10, 2000


SUMMARY: NeuVisc® is a synovial fluid supplement that works by coating, lubricating, and cushioning the articular surfaces within a diseased joint. NeuVisc is a single (1) injection treatment for osteoarthritis. This treatment has a higher viscosity allowing the it to be more effective. Preliminary studies show NeuVisc supplemented synovial fluid to be 50 to 100 times greater (meaning more therapeutic) than synovial fluid supplemented with hyaluronic acid (another synovial fluid supplement). PALO ALTO, Calif./BW HealthWire - Cohesion Technologies today announced a private placement financing for its osteobiologics subsidiary, NeuColl, Inc., that will provide net proceeds of approximately $4 million to NeuColl. Proceeds will be used by NeuColl to fund a pivotal clinical study for NeuVisc™, a treatment for osteoarthritis, and support expanded Collagraft commercialization efforts. NeuVisc is a single (1) injection treatment for osteoarthritis that, if approved, will compete with currently marketed hyaluronic acid-based synovial fluid supplements that require either three (3) or five (5) intra-articular knee injections per treatment regimen. Industry analysts estimate that over 20 million people worldwide are candidates for minimally invasive injectable osteoarthritis treatments with synovial fluid supplements. Synovial fluid supplements work by coating, lubricating, and cushioning the articular surfaces within a diseased joint. The higher the viscosity of the supplement being injected the more effective the product is thought to be. "In a study conducted by NeuColl in which bovine synovial fluid was augmented with NeuVisc or hyaluronic acid, the viscoelastic (viscosity and elastic) properties of the NeuVisc supplemented synovial fluid was 50 to 100 times greater than synovial fluid supplemented with hyaluronic acid," according to Roy Fiebiger, president and chief executive officer of NeuColl. "This infusion of capital [$4 million] will enable us to complete our pivotal clinical trial for NeuVisc which, if successful, should enable us to begin European sales in 2001. We believe it will also enable us to expand Collagraft commercialization throughout Europe and to train and support our distributors worldwide," said Fiebiger. Sources: Cohesion Technologies, Inc. NeuColl, Inc.



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