Orthovita Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported product sales of $22.3 million, an 8% increase over product sales of $20.6 million in the third quarter of 2008. The 2009 third quarter results included $400,000 in U.S. sales of Cortoss(TM), the Company's new and innovative synthetic biomaterial that was cleared by the FDA in June 2009 for the treatment of vertebral compression fractures. Loss before tax was $1.7 million compared to $1.7 million for the same period of last year. The operating loss decreased to $1.0 million compared to an operating loss of $1.2 million in the third quarter of 2008. The net loss for the quarter ended September 30, 2009 was $1.7 million, or $0.02 per common share, which was unchanged from the third quarter of 2008. For the nine months, the company reported product sales increased 22% to $68.5 million, compared to $56.1 million for the first nine months of 2008. This increase was due primarily to higher sales of Vitoss Bioactive Foam. The operating loss was $1.5 million compared to an operating loss of $8.5 million in the first nine months of 2008. This improvement resulted from higher sales and gross margins, which were partially offset by higher (5.0%) operating expenses in the first nine months of 2009 compared to the first nine months of 2008. The net loss was $3.6 million or $0.05 per common share compared to a net loss of $9.5 million, or $0.13 per common share, in the first nine months of 2008. Loss before tax was $3.6 million compared to $9.5 million for the same period of last year. For the nine months ended September 30, 2009, the net cash and cash equivalents used in operating activities was $5.9 million, compared to $11.7 million for the nine months ended September 30, 2008.

To provide an update on the commercialization of Cortoss

Orthovita Inc. announced that will present his abstract, 'A Comparison of Clinical Outcomes and Adjacent Level Fractures in Patients Receiving Vertebroplasty for Osteoporotic Compression Fractures Using CortossTM or PMMA: A Prospective, Randomized Trial,' at the 2009 Annual Meeting of the Congress of Neurological Surgeons (CNS). The presentation will take place in New Orleans on October 26, 2009, at 3:15 p.m. The abstract was selected by CNS as a Top Ten Abstract for the meeting's section on disorders of the spine and peripheral nerves. It is based on clinical data from Orthovita's prospective, randomized, multi-center study comparing the efficacy of its Cortoss product to polymethylmethacrylate (PMMA) in the treatment of vertebral compression fractures (VCF). Dr. Nunley participated in the study as a clinical investigator. Key findings from the 256-patient clinical study include the following statistically significant benefits for the Cortoss patient group: Early patient outcomes assessed at 3 months: With a Visual Analogue Pain Scale (VAS) score success rate of 86.6%, the Cortoss patient group experienced a statistically significant benefit in pain success over the PMMA group, which had a VAS score success rate of 75.0%. Long-term patient outcomes assessed at 24 months: With an Oswestry Disability Index (ODI) function assessment success rate of 96.7%, the Cortoss patient group experienced a statistically significant benefit in function success over the PMMA group, which had an ODI success rate of 88.4%. In addition, the Cortoss patient group experienced benefits over the PMMA cohort in the following outcomes: A 43.4% reduction in subsequent, adjacent level fractures in Cortoss patients treated for a primary fracture at one level, as measured at the end of the 24-month follow-up period; A 67.4% lower incidence of subsequent VCF procedures; A 74.6% lower incidence of re-hospitalization for spinal fracture; and The Cortoss patients required an average of 30% less material to achieve fracture fill.