Orthovita, Inc. (VITA), a leading spine and orthopedic surgery company, announced that the company has officially entered into an agreement with Allegen, Inc. This agreement specifies that Orthovita will acquire raw material, equipment and technology licenses from Allergan, Inc. and its affiliate Allergan Sales, LLC for $6.6 million in cash. At this time, Orthovita expects the deal to be inked on October 31, 2007.

The raw material and equipment that will be acquired relate directly to Orthovita’s VITAGEL® Surgical Hemostat product. Allergan, currently supplying collagen for VITAGEL, will manufacture and supply specified quantities of collagen to Orthovita by the time the deal is finalized. Furthermore, Allergan will also sell certain collagen production, test equipment and grant Orthovita a non-exclusive, royalty-free, license to collagen technology processes.

Antony Koblish, President and Chief Executive Officer of Orthovita, said, “This transaction sets our company up for enhanced supply and manufacturing stability of VITAGEL over the long-term by allowing us to have better control of a key product component. In addition, acquiring the production equipment and license will give us the opportunity to integrate a new technology platform and capability into the company.”

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