The invention is directed toward a malleable bone putty and a flowable pastel
composition for application to a bone defect site to promote new bone growth at
the site which comprises a new bone growth inducing compound of partially demineralized
lyophilized allograft bone material having a residual calcium content ranging from
4 to 8% dry weight. The bone powder has a particle size ranging from about 100
to about 800 microns and is mixed in a high molecular weight hydrogel carrier containing
a sodium phosphate saline buffer, the hydrogel component of the carrier ranging
from about 1.00 to 50% of the composition and having a molecular weight of about
at least 700,000 Daltons. The composition has a pH between 6.8-7.4 contains about
25% to about 35% bone powder and can be additionally provided with BMP's.