ROCKVILLE, MD—BioSurface Engineering Technologies Inc. (BioSET), which is developing synthetic peptide growth factors for advanced tissue repair, has closed an $11 million raise. PTV Sciences of Austin, Texas led the round, joined by new investors Westfield Capital and Heron Capital.

Existing investors the Vertical Group, EDF Ventures, MB Ventures and New Markets Growth Fund also participated.

BioSET CEO and President Tom Roueche said, “This financing will allow us to commence human clinical trials with our lead synthetic B2A growth factor product for spine fusion, and also will permit the company to accelerate the pre-clinical development of additional growth factor mimetics the company has identified.”

BioSET’s lead product is an osteoinductive bone graft material that is comprised of a proprietary peptide signaling molecule coated onto a ceramic bone void filler material. Bone graft materials are predominately used in spine fusion procedures, a surgical option for patients with debilitating back pain associated with degenerative disc disease. Industry analysts estimate the U.S. market for growth factor based bone graft products was in excess of $650 million in 2006, growing at 33%.annually. The estimated market in 2006 for all bone substitute materials is approximately $1.4 billion.

BioSET plans to initiate pilot human study of B2A as an alternative to iliac bone graft in 2007. The company expects to file a medical device IDE with the FDA in the coming weeks in anticipation of a larger prospective pivotal study comparing B2A to hip autograft in lumbar spine fusion procedures.

For more see: www.biosetinc.com

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