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Frost & Sullivan Acknowledges ISTO Technologies' Role in Developing Advanced Biologic Products for Bone Healing

Thursday, October 16, 2008 General News J E 4
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MOUNTAIN VIEW, Calif., Oct. 15 Based on its recentanalysis of the bone healing market, Frost & Sullivan recognizes ISTOTechnologies, Inc. with the 2008 North American Frost & Sullivan Award forProduct Innovation for its novel InQu(R) Bone Graft Extender and Substitutescaffold. InQu represents the first commercial product launched by thecompany using its proprietary biomaterial-based platform technology.

Although spinal fusions and other orthopedic intervention methods areroutinely used to eliminate back pain, surgeons are still unsure about theright choice in bone grafting materials. While autologous grafts havetraditionally been considered the "gold standard" in treatment, the painassociated with harvesting autologous bone, along with an increase inoperation and recovery times, and high rates of complications including donorsite morbidity have made a case for alternative treatments.

"ISTO Technologies' InQu Bone Graft Extender and Substitute brings to theforefront the strengths and biological attributes of two reliable, safe, andeffective biomaterials: (Poly lactide-co-glycolide) (PLGA) and hyaluronic acid(HyA)," explains Frost & Sullivan Research Analyst Pramodh Ishwarakrishnan."The unique InQu scaffold creates a microenvironment that is bothbiocompatible and conducive to new bone formation."

These two major components of the scaffold have specific contributions tothe overall healing process. PLGA, while giving the three-dimensionalstructure to InQu, also provides a reliable resorption rate at the site ofimplantation. HyA has been shown to play a critical role in tissueregeneration and repair, apart from promoting the migration, proliferation,and differentiation of osteogenic cells during the early stages of normal boneformation.

"The ideal combination of PLGA and HyA offers the advantages of superiorcohesiveness, molding properties, handling characteristics and consistentlypredictable results," observes Ishwarakrishnan. "The HyA component mayprovide supplementary biological cues necessary for cells to grow and for thetissue to develop, thus making InQu a versatile scaffold, superior to anyosteoconductive material in the market."

The InQu Bone Graft Extender offers several advantages over existingsynthetic bone graft substitutes including its unique ability to support thenormal process of endochondral bone formation. It also eliminates thepotential risk of infection that is common with allograft transplants.

ISTO Technologies has a team of committed scientists and staff workingtowards delivering high-quality orthobiologic products to the medicalcommunity. InQu has already won clearance from Food and Drug Administration(FDA) as a bone graft extender and substitute. The company has severalInQu-related patents pending and intends to develop additional applicationsfor the biomaterial technology in the near future.

"The company's development pipeline includes NuQu(TM), a cell-basedinjectable formulation of juvenile chondrocytes for nucleus regeneration ofthe spinal disc," notes Ishwarakrishnan. "In addition to this, the company isin clinical trials with DeNovo(R) ET, its scaffold-free living cartilage graftbased on its patented cell based technology platform, to repair and regeneratedamaged knee cartilage."

Each year, Frost & Sullivan presents this award to the company that hasdemonstrated excellence in new products and technologies within its industry.The recipient company has shown innovation by launching a broad line ofemerging products and technologies.

Frost & Sullivan's Best Practices Awards recognize companies in a varietyof regional and global markets for demonstrating outstanding achievement andsuperior performance in areas such as leadership, technological innovation,customer service, and strategic product development. Industry analystscompare market participants and measure performance through in-depthinterviews, analysis, and extensive secondary research in order to identifybest practices in the industry.

About ISTO Technologies, Inc.

ISTO Technologies, Inc. is a privately-held orthobiologics company basedin St. Louis, MO. The company is focused on developing breakthrough productsdesigned to regenerate and restore damaged cartilage and bone for sportsmedicine injuries, trauma and spinal therapy indications. ISTO's discretecell-based and biomaterial platforms encompass a number of technologicalbreakthroughs that are poised to advance the practice of medicine by offeringsolutions for unmet and/or largely unsatisfied clinical needs in largeorthopedic markets. ISTO's mix of clinical stage, development stage andmarketed products includes DeNovo(R) ET, engineered cartilage to repair andrestore joint function in the knee, NuQu(TM), a cell-based injectableformulation of juvenile chondrocytes for nucleus regeneration of the spinaldisc and InQu(R), an osteobiologic bone graftSubstitute and extender. For more information about ISTO, visithttp://www.istotech.com

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, partners with clients toaccelerate their growth. The company's TEAM Research, Growth Consulting andGrowth Team Membership(TM) empower clients to create a growth-focused culturethat generates, evaluates and implements effective growth strategies. Frost &Sullivan employs over 45 years of experience in partnering with Global 1000companies, emerging businesses and the investment community from more than 30offices on six continents. For more information about Frost & Sullivan'sGrowth Partnership Services, visit http://www.awards.frost.com.Contact: Scott Gill (314)995-6049

SOURCE ISTO Technologies, Inc.
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