OsteoGeneX spins off bone-grafting unit, boosted by $1.8M in financing (Kansas City Business Journal)
OsteoGeneX Inc. has spun off a new company called OssiFi to focus on technology that replaces standard bone-grafting techniques.
On Tuesday, the Kansas City, Kan., company announced the spinoff, which will license bone-repair devices and other technology developed by OsteoGeneX.
OssiFi, which also will be based in KCK, is being financed with $1.8 million in new investment, including $900,000 from the Israel-U.S.Binational Industrial Research and Development Foundation, $450,000 from the Kansas Bioscience Authority and $450,000 from local angel investors, the company said in a release. Some of the local investment was announced in June.
Debra Ellies, CEO of OsteoGeneX and OssiFi, said that forming the new company will increase shareholder value by making the technology more attractive to potential purchasers because it will be separate from OsteoGeneX’s pharmaceutical assets.
“OsteoGeneX will continue to focus on what it does well — development of bone-building therapeutics for whole body or systemic use,” Ellies said. “OssiFi and its team will drive our most promising bone growth implants to market as efficiently as possible.”
OsteoGeneX also said it added David Cossaboon as chief commercial officer, responsible for identifying market opportunities for the company’s other technology.
Cossaboon previously was director of global business development for Synthes Biomaterials, a subsidiary of Swiss medical device company Synthes Inc.
In June, OsteoGeneX said it raised $1.4 million to help with development of its bone-growth products.