BioSet finance officer sees company funds set through 2007 with Biomet pact

By Ronda Fears

Nashville, July 13 - BioSurface Engineering Technologies, Inc., better known as BioSet, announced Tuesday a technology evaluation and development agreement with a subsidiary of Biomet Inc. and the company expects that with previous financing it should be able to fund operations without another capital-raising effort for the next two years.

The College Park, Md.-based company aims to be profitable in three to five years, assuming it lands two to three more partnerships that pay BioSet milestones and royalties, said BioSet chief executive Tom Roueche. BioSet has eight employees and will reach 10 by year-end.

"We plan to grow our staff to 15 by the end of 2006 but that is dependent on securing more partnerships," said BioSet vice president of finance Linda Finn. "If those partnerships do not materialize in 2006," she said, "the headcount will probably be 11 or 12 by the end of 2006."

With previous private capital and now the Biomet transaction, Finn said Bioset should have until 2007 before it will need to look at raising more funds.

In August 2004, BioSet raised $5.5 million in series B funding, on top of its $2.8 million first round of financing that closed in June 2001. Securing the partnership with Biomet means BioSet likely won't need to raise a third round of funding in the near future, Finn said.

Under terms of the agreement announced Tuesday, for which financial details were not released, EBI and other Biomet affiliates will evaluate one of BioSet's compounds in preclinical models to develop orthopedic uses, with a goal of having the compound in human testing in the next two years. BioSet will concentrate on wrapping up preclinical work, while will fund clinical trials. Then, if a product reaches commercialization, BioSet will receive royalties.

BioSet, founded in California four years ago, is developing a drug-delivery technology that combines therapeutic products and medical devices focused on treatments of vascular, orthopedic and chronic-wound conditions. The company moved to the Washington, D.C., area in 2002.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.