Osteotech, Inc. (OSTE) hasn’t exactly been the best performing medical technology companies in the market, and that has prompted some investors to write a letter to the board demanding changes. In a Schedule 13D filing filed on November 24th, Kairos Partners voiced its concern about the company’s results and recommended they seek strategic alternatives.

Here’s a copy of the letter:

As you know, Kairos Partners is a significant, long-term shareholder of Osteotech stock, owning more than 6%. We were greatly disappointed by the company’s Q3 2009 earnings release and investor conference call.

In addition to the poor Q309 results, the company lowered the revenue and earnings guidance for FY09 and, once again, announced a delay in achieving profitability until Q3 2010.

We believe the significant investments the company has made in product development have produced a strong new product portfolio. However, we also believe that Osteotech, as currently structured, is not well positioned to take full advantage of the commercial opportunity that these exciting new products present.

We have serious concerns regarding Osteotech’s limited capital resources, management’s historically poor performance in new product launches, and the lack of a direct sales force. We strongly believe that a larger and more experienced company would be able to recognize this opportunity and reward Osteotech shareholders today for their long patience.

As such, it is our recommendation to the Board of Directors that they hire a strategic advisor to explore all possibilities, including the sale of the company, as the best way to realize this potential value for all shareholders.