April 16, 2005

For Immediate Release

Growth in the Market for Medical and Surgical Sealants and Glues Remains Robust, According to MedMarket Diligence Report

FOOTHILL RANCH, CA Since the introduction of surgical sealants and, more recently, medical/surgical glues into medical practice, their use has grown steadily both in the adoption of new medical and surgical applications and steady expansion of caseloads.  This market acceptance of the clinical utility of these methods in the closure of surgical and traumatic wounds is driving robust growth in the sales of sealants and glues worldwide, according to a report by MedMarket Diligence.

MedMarket Diligence forecasts that approximately 70 million procedures around the world might benefit from sealants, glues, and other wound closure products in this group. Select products and applications will grow at rates near 20 percent annually.  In particular, double digit annual growth continues in the market for surgical sealants.  Even more pronounced growth is consistently occurring for medical glues, which have the added benefit of providing wound closure with higher strength, resulting in a greater number of applications in which stresses on the wound demand more reliable closure.  These include cardiothoracic, pulmonary and other clinical applications for which surgical sealants have not produced sufficient closure strength.

In the next few years, we will see strong penetration of new therapies into new procedure areas, and some new introductory techniques for treatment of orthopedic, cardiovascular and neurological procedures, particularly in the second half of this decade, when several new products and procedures will appear in all of these categories.

A number of market leaders have consolidated their positions within the surgical closure and securement markets through successful internal development programs and through technology partnerships with innovative vendors of next generation technologies. For example, U.S. Surgical and Ethicon are major suppliers of cyanoacrylate products in the USA; with dominant sales resource to sell these products, these companies lead the market, although they will face competition from the Canadian company Glustitch, the UK-based MedLogic and others. Synovis has targeted cardiovascular and other procedures, and has a range of closure products and has recently partnered with GEM to develop and exploit GEMs internal high strength glue product (Glubran) in the USA.

The market remains replete with competitors, including Focal (Genzyme Biosurgery), Angiotech BioMaterials (Cohesion Technologies), Fusion Medical, Confluent Surgical, CryoLife, Medchem (C.R. Bard), Tissuemed, Surgical Sealants, Ethicon/Closure Medical, U.S. Surgical (Tyco Group), Haemacure, MedLogic Global (Advanced Medical Solutions), GEM srl, Chemence, Glustitch, Berlin Heart, and many others.

The "Worldwide Surgical Sealants, Glues and Wound Closure Market, 2004-2014" report, published January 2005, covers sealants, glues, tapes, sutures, staples, hemostats, fibrin sealants/glues and medical adhesives. The report details the clinical and technology developments underlying growth and opportunity in the market, detailing products on the market and under development, with detail on market size and forecast, competitor market shares, competitor profiles and market opportunity. Details of the report, including table of contents and list of exhibits, are available at www.mediligence.com/rpt-s122.htm.

MedMarket Diligence provides tactical decision-making solutions on medical technology to the medical products and investment industries. The company publishes the MedMarkets newsletter, a monthly analysis of the market implications of new medical technology and dedicated reports on technology markets.  For additional details, contact Patrick Driscoll at email or call 949-859-3401 or toll-free (in the U.S.). 1-866-820-1357.