UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~February~~March 1420, 2007

ISOTIS, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware (State or Other Jurisdiction of Incorporation) 001-33272 (Commission File Number) 20-5825634 (I.R.S. Employer Identification No.)


Delaware	001-33272	20-5825634

(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

2 Goodyear
Irvine, California 92618
(Address of Principal Executive Offices)(Zip Code)

(949) 595-8710
(Registrant’s telephone number, including area code)

Not Applicable ~~(Former Name or Former Address, if Changed Since Last Report)~~

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition.
	Item 5.02. Compensatory Arrangements of Certain Officers.
	Item 3.02. Unregistered Sales of Equity Securities.
	Item 8.01. Other Events.
	Item 9.01 Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1
EXHIBIT 10.1

Item 25.02. ~~Results~~Compensatory Arrangements of ~~Operations~~Certain ~~and Financial Condition~~Officers.

On ~~February~~March 1420, 2007, ~~the~~we ~~registrant~~entered ~~issued~~into a ~~press~~separation and general release ~~reporting~~agreement ~~its~~(the ~~preliminary~~“Separation ~~unaudited~~Agreement”) ~~revenues~~with ~~for~~Alan ~~the~~Donze, ~~fourth~~our ~~quarter~~Senior ~~and~~Vice ~~full~~President ~~year~~of ~~ended December 31~~Sales, ~~2006.~~who ~~The~~is ~~first paragraph~~one of ~~the~~our ~~press~~named ~~release,~~executive officers (which ~~relates~~officers were determined by reference to ~~the~~our ~~preliminary~~Form ~~unaudited~~S-1, ~~revenues~~filed ~~for~~on ~~the~~January 29, ~~fourth~~2007). ~~quarter~~We ~~and~~had ~~full~~previously ~~year~~entered ~~ended~~into ~~December~~an employment agreement, dated as of January 31, ~~2006~~2007, isas ~~furnished~~amended ~~herewith~~on February 22, as2007 ~~Exhibit~~(the “Employment Agreement”), with Mr. 99Donze.1.

~~Item~~ Pursuant to the terms of the Separation Agreement, effective April 35, 2007, Mr.~~02.~~ Donze ~~Unregistered~~will resign from his position as Senior Vice President of Sales and the Employment Agreement shall terminate. Upon termination, in lieu of ~~Equity~~any ~~Securities~~further compensation, benefits or severance due under the Employment Agreement, we have agreed that Mr. Donze will retain the personal computer provided to him as part of his initial appointment and we will pay Mr. Donze the 2006 bonus, in the amount of $120,000, that he would have received on June 1, 2007 had he remained employed through that date. In exchange, Mr. Donze has executed a general release in favor of the Company.

As ~~previously~~used ~~reported~~herein, the ~~registrant~~terms ~~commenced~~“we,” ~~and completed the initial settlement of~~“us,” ~~an exchange~~“our” ~~offer~~and ~~for all of~~ the ~~outstanding~~“Company” ~~common~~refer ~~shares of IsoTis S.A., a Swiss corporation, pursuant~~ to ~~which it offered to exchange one of its shares of common stock for each ten common shares of~~ IsoTis ~~S.A. After the initial settlement~~, ~~the registrant commenced a post-acceptance period on January 25, 2007~~Inc. ~~The post-acceptance acceptance period for the exchange offer ended~~ ~~February 7, 2007 and on February 14, 2007 the registrant issued an additional 1,100,159 shares of its common stock.~~

The ~~issuance~~foregoing ofdescription ~~common~~is ~~stock~~qualified ~~was exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”)~~ in ~~reliance~~its onentirety ~~Rule 802~~by ~~promulgated~~reference ~~under~~to the ~~Securities~~Separation ~~Act. At the commencement of the exchange offer~~Agreement, ~~IsoTis~~filed ~~S.A. was a “foreign private issuer,”~~ as ~~that term is defined in Rule~~Exhibit ~~405 under the Securities Act, and as of November 17, 2006 (30 days prior to the commencement of the exchange offer), U.S. shareholders held less than~~ 10~~% of the outstanding common shares of IsoTis S~~.A.1 Into ~~determining~~ this ~~percentage,~~Current ~~the~~Report ~~registrant applied the procedures prescribed by Rule 800(h) under the Securities Act. U.S. holders of common shares of IsoTis S.A. were permitted to participate in the exchange offer~~ on terms at least as favorable as those offered in any other jurisdiction. The Offer Memoranda, and any other informational documents provided to IsoTis S.A. shareholders in connection with the exchange offer, were furnished, in English, to the SEC on Form CB by8-K ~~the first business day after publication or dissemination~~ and ~~were~~incorporated disseminated, in English, to U.S. shareholders on a comparable basis to that provided to shareholders in Switzerland. Any information relating to the exchange offer that IsoTis S.A. or registrant has disseminated to stockholders located outside the U.S. has been disseminated in the U.S. in a manner reasonably calculated to inform U.S. holders of the offer. Finally, the legend required by ~~Rule~~reference ~~802(b) under the Securities Act has been included as required in the informational documents regarding the exchange offer disseminated to U~~herein.~~S. holders.~~

Item 8.01. Other Events.

On February 14, 2007, the registrant issued a press release reporting the receipt of a letter from the U.S. Food and Drug Administration with additional comments and questions regarding the registrant’s pending 510(k) application for its Accell products. The press release is furnished herewith as Exhibit 99.1 and the section titled “Regulatory Update” is filed herewith and hereby incorporated by reference into this Item 8.01.

Item 9.01 Financial Statements and Exhibits.

Exhibits:		Description of Document
99.1		Press Release dated February 14, 2007
10.1		Separation Agreement, dates as of March 20, 2007, by and between the registrant and Alan Donze

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SIGNATURES

We have authorized the person whose signature appears below to sign this report on our behalf, in accordance with the Securities Exchange Act of 1934.

	ISOTIS, INC.(registrant)
Date: March 23, 2007	ISOTIS, INC. (registrant)
Date: February 21, 2007	By:	/s/ Robert J. Morocco
	By:	/s/ Robert J. Morocco
		Robert J.Morocco
		Chief Financial Officer, Senior Vice President, Secretary & Treasurer

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EXHIBIT INDEX

Exhibits:		Description of Document
99.1		Press Release dated February 14, 2007
10.1		Separation Agreement, dates as of March 20, 2007, by and between the registrant and Alan Donze

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