Market for Artimplant's products amounts to tens of billions SEK

Market for Artimplant´s products amounts to tens of billions SEK At an analyst meeting coordinated by Finanstidningen on January 17, Ar- timplants CEO Anders Cedronius commented on the company´s plans regarding the coming product launches as well as market data for several of these products. The total market for Artimplant´s ongoing projects is estimated to amount to several tens of billions SEK and competition for many of the products is limited. During year 2000 Artimplant is entering a market phase and will therefore strengthen its market organization for the coming product launches. The company expects to launch its first product, a biodegradable bone fracture implant for malleoli fractures, towards the end of the current year. The plan is to launch a number of other products from year 2001 and onwards. Artimplant estimates that the market for ACL´s (anterior crutiate liga- ments) amounts to more than SEK 10 billion, assuming that all injuries are surgically treated. Today roughly half of the one million ACL injuries that occur annually in the Western world are surgically treated. The mar- ket for Artimplant´s other ongoing ligament projects is estimated at SEK 5-15 billion. The existing market for metal implants used for bone fracture fixation is estimated at SEK 8 billion. Today Artimplant develops biodegradable bone fracture implants corresponding to a market of SEK 1.5-3 billion. Together with Mölnlycke Health Care Artimplant develops a new product ge- neration for advanced wound care, a market estimated at SEK 3-4 billion. During this year Artimplant intends to incorporate a subsidiary, Ar- timplant Carriers, with the purpose to concentrate the company´s develop- ment work within drug delivery to one entity in order to create prerequi- sites for collaboration with established pharmaceutical companies as well as for different financing opportunities. Anders Lindahl, Associate Professor at Sahlgrenska University Hospital in Gothenburg and tied to Artimplant, commented on the company´s development work within the pharmaceutical area. Artimplant´s drug delivery technology is based on the possibility to deli- ver a pharmaceutical compound that has been coupled to a biodegradable po- lymer in order to attain controlled release over a longer period. The mar- ket for drug delivery products amounts to approximately SEK 350 billion, whereof Artimplant´s carrier technology is estimated to address a sector amounting to approximately SEK 50 billion. During 1999 Artimplant used SEK 26 million including a last payment for GMC of SEK 4 million. During the autumn 1999 the company´s liquid assets were strengthened by SEK 28 million from a fully subscribed warrant pro- gram issued during 1995-1997. Artimplant´s liquid assets have therefore increased from SEK 38 to 40 million during 1999. For more detailed information the presentation material can be retreived from Artimplant´s website: www.artimplant.se Artimplant is a biomaterial company focused on unmet needs in the field of orthopedic surgery. Artimplant's business concept is to develop, manufac- ture and market biodegradable implants that provide the injured tissue with temporary relief and support the body's natural healing process. The Company's researchers, which represent a unique combination of interdisci- plinary competence, have synthesized a vast number of biodegradable poly- mers, that can be tailored for use in a number of different medical- treatment areas. Artimplant has developed and patented a resorbable ligament implant that currently is undergoing clinical trial for treatment of injured anterior cruciate ligament (ACL). A ruptured ACL in the knee is one of the most frequent ligament injuries and often leads to lifelong detrimental effects for the injured, and substantial costs to society. Artimplant's technology can be applied in numerous other areas, and the development activities have expanded to include more than a dozen projects. As part of Artimplant's market strategy Gothenburg Medical Center (GMC) was acquired with the purpose of establishing Swedish headquarters for Ar- timplant Academy - a forum for advanced clinical research, application and education within orthopedic surgery. Cartilage replacement - a new method for treatment of damaged cartilage - was developed by researchers employed or tied to Artimplant. The clinical documentation of the patients who have undergone cartilage replacement at GMC, has formed the basis for the US authorities' approval. Artimplant is listed on the O-list of the OM Stockholm Stock Exchange. Artimplant's interim reports and press releases can be retrieved from: www.Artimplant.se For further information, please contact: Anders Cedronius, CEO Artimplant tel: +46 (0)31 - 746 5600 Kari Odhnoff, Investor Relations Artimplant tel: +46 (0)708 - 639 341 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/17/20000117BIT00180/bit0001.doc http://www.bit.se/bitonline/2000/01/17/20000117BIT00180/bit0002.pdf