A Medical Device Daily

Osteotech (Eatontown, New Jersey) said it has entered into a single source agreement with Novation (Irving, Texas), a healthcare contracting services company.

The agreement will serve the purchasing needs of nearly 2,500 members of VHA (also Irving) and University HealthSystem Consortium (UHC; Oak Brook Illinois), two national healthcare alliances.

Osteotech will offer Novation's alliance members its line of allograft products, including Grafton DBM, Xpanse bone inserts and Graftech structural allografts, as well as traditional allograft bone tissue grafts and its PEEK-based GraftCage spacers.

The term of the agreement is for 36 months effective July 2, with two one-year renewal options.

Robert Wynalek, Osteotech's domestic president, said, "We are very excited about our agreement with Novation. Relationships with group purchasing organizations are a key component to our domestic distribution strategy. As we expand our product portfolio, we believe our work with group purchasing organizations will be key channels to leverage one-stop OsteoBiologic product solutions."

Osteotech bills itself as the provider of OsteoBiologic solutions to surgeons and patients for the repair of the musculoskeletal system through the development of innovative therapy-driven products that alleviate pain, promote biologic healing and restore function.