ST. PAUL, Minn., Feb. 28 /PRNewswire-FirstCall/ -- At the Synovis Life Technologies, Inc. annual shareholders’ meeting today, President and Chief Executive Officer Karen Gilles Larson commented on coverage developments in gastric bypass surgery, a primary market for the company’s Peri-Strips(R) (PSD and PSD-Veritas(R)) products. These buttresses are used to reinforce surgical staple lines and reduce the risk of leaks of air, blood or bodily fluids that can cause surgical complications.
Larson noted that last week the Centers for Medicare & Medicaid Services (CMS) announced a decision to provide reimbursement for three forms of gastric bypass surgery to treat obesity in Medicare beneficiaries of any age, if they are treated at centers certified by the American Society of Bariatric Surgery or the American College of Surgeons.
“This is good news because private insurers generally follow CMS’ lead, and they will have less basis for denying the safety or benefits of these procedures when performed at certified institutions by qualified surgeons,” said Larson. “Qualified surgeons, practicing in regions where private insurance coverage of roux-en-y surgery has been poor, expect to see their procedure numbers increase when, as they anticipate, private payors who do not currently cover or who restrict coverage of gastric bypass feel the pressure of the CMS decision. These surgeons include those who use Peri-Strips. Synovis, therefore, expects to see an increase in business, if private payor coverage improves.” Synovis has more than 10 years experience with Peri-Strips, and the data show that it can reduce complication rates.
Treating obesity has the potential to save Medicare money by improving patients’ health and reversing obesity-related conditions, such as diabetes and cardiovascular disease. Larson added that the company plans to introduce a circular Peri-Strips buttress, designed specifically for the circular staplers used in bariatric surgery, during the second and third fiscal quarters. Currently, the company is conducting a clinical evaluation of a larger circular buttress for use in colorectal surgery, a new application and potentially large market opportunity. The study’s objective is to determine if the buttress offers significant benefits in these complicated surgeries.
Synovis also announced the results of business transacted at today’s annual meeting. Based on votes cast in person and represented by proxy, shareholders voted to set the number of the board of directors at six, elected the six nominated directors to the board and approved the company’s 2006 stock incentive plan.
About Synovis Life Technologies
Synovis Life Technologies, Inc., based in St. Paul, Minn., is a diversified medical device company engaged in developing, manufacturing and bringing to market medical devices for the surgical and interventional treatment of disease. For additional information on Synovis Life Technologies and its businesses, visit the company’s Web site at http://www.synovislife.com .
Forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements can be identified by words such as “should”, “could”, “may”, “will”, “expect”, “believe”, “anticipate”, “estimate”, “continue”, or other similar expressions. Certain important factors that could cause results to differ materially from those anticipated by the forward-looking statements made herein include the timing of product introductions, outcomes of clinical trials and regulatory submissions, the number of certain surgical procedures performed, the level of orders from contract manufacturing customers, and the effectiveness of the company’s plan to transition to a direct sales force, as well as the other factors found in the company’s Annual Report on Form 10-K for the year ended October 31, 2005.
Synovis Life Technologies, Inc.
CONTACT: Nancy A. Johnson, +1-612-455-1745, or Marian Briggs,+1-612-455-1742, both of Padilla Speer Beardsley Inc., or Brett Reynolds,CFO of Synovis Life Technologies, Inc., +1-651-796-7300
Web site: http://www.synovislife.com/
