OSTEOTECH INC
4, 1996-07-09
MISC HEALTH & ALLIED SERVICES, NEC
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                           July 9, 1996

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549

          Re:  Osteotech, Inc.
               RICHARD W. BAUER

Ladies and Gentlemen:

     On behalf of Richard W. Bauer ("Bauer"), a director and officer of
Osteotech, Inc. (the "Company"), we hereby submit for electronic filing for
Bauer a Form 4 - Statement of Changes in Beneficial Ownership.

          Thank you.

                                   Very truly yours,

                                   /s/CATHERINE M. VACZY
                                   Catherine M. Vaczy



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