School for startups

<p>A Santa Rosa biotech startup is about to launch its first product, a next-generation system for repairing spinal fractures.</p><p>Osseon Therapeutics is the first spinoff company from the University of Northern California, a small private institute that focuses on biomedical research.</p><p>Osseon's technology is aimed at a $650 million annual U.S. market for minimally invasive treatments of vertebral compression fractures, which are primarily caused by osteoporosis.</p><p>Osteoporosis is a condition that causes bone loss, which can weaken the spine and lead to painful fractures of the vertebrae.</p><p>About 700,000 people in the United States -- mostly women over 50 -- suffer such fractures every year. The number is expected to grow sharply in future years because of the aging U.S. population.</p><p>"It's a problem that's not going to go away," said John Stalcup, Osseon's chief executive officer.</p><p>Last week, Osseon began commercially manufacturing its spinal fracture repair kit at the University of Northern California's new campus on Circadian Way in Santa Rosa. The 38,000-square-foot space is a former Medtronic manufacturing facility.</p><p>The campus includes a Science and Technology Innovation Center, with research and development space, manufacturing clean room, clinic and materials testing labs.</p><p>The university was founded by King Liu, a biomedical engineer who taught at the University of Michigan, Tulane University and the University of Iowa before founding the private college in Petaluma in 1993. It moved to Santa Rosa earlier this year, where it is instructing about 10 graduate-level students.</p><p>The biotech spinoffs will help fund university programs, Liu said. The nonprofit university licensed the technology to Osseon, and its foundation will receive royalties and an equity stake in the company, he said.</p><p>Osseon has 33 employees, including several University of Northern California students and fellows.</p><p>Spinal fracture repair -- also known as vertebroplasty -- involves insertion of a special bone needle through the posterior soft tissues and injecting a small amount of orthopedic cement into the damaged vertebra.</p><p>Osseon's system uses a proprietary steerable needle that reaches damaged areas with a single insertion. Conventional repair involves two insertions on opposite sides of the vertebra.</p><p>Osseon's procedure is easier and faster than existing methods, Stalcup said. The surgery kit, which includes the steerable needle, bone cement and dispenser, costs $2,395.</p><p>It will have a limited launch next week and eventually be sold to hospitals, clinics and medical specialists.</p><p>So far, Osseon has raised about $6 million in private equity to develop the technology.</p><p>The steerable needle was invented by Jan Lau, a former research engineer for Santa Rosa's Arterial Vascular Engineering, now part of Medtronic.</p><p>"The steerable injection needle started as a prototype in my garage," said Lau, vice president of product development for Osseon.</p><p>The school has two other medical device startups, Tisugen Therapeutics and Sapheon Inc.</p><p>Tisugen is developing devices for reducing pain from osteoarthritis of the knee. Sapheon is working on minimally invasive treatments for removing varicose veins.</p><p>You can reach Staff Writer Steve Hart at 521-5205 or steve.hart@pressdemocrat.com.</p>