By Varsha Tickoo

BANGALORE (Reuters) - BioMimetic Therapeutics Inc (BMTI.O: Quote, Profile, Research) shares, which lost half their value Thursday, recovered some of the losses Friday after the company said cancer concerns about a Johnson and Johnson foot gel would not apply to BioMimetic products containing the same ingredient.

On Thursday, U.S. Food and Drug Administration officials said J&J's (JNJ.N: Quote, Profile, Research) Regranex, a gel used to treat diabetic leg and foot wounds, may increase the risk of cancer and death.

Regranex contains becaplermin, a substance naturally produced by the body that helps in wound healing, that is also an ingredient in certain BioMimetic products.

BioMimetic, which focuses on bone-healing products, said the health regulator had not established a causal relationship between the product and the adverse events.

In the study cited by FDA, 2.9 percent patients on becaplermin had cancer, while incidence of the disease was 3.1 percent in patients on another treatment, the company said.

"I think the whole story (about BioMimetic) is overblown," Debjit Chattopadhyay, an analyst with Boenning & Scattergood, said from Philadelphia.

Chattopadhyay, who has a "buy" rating and a share price target of $20 on BioMimetic, said in any case, diabetics have a higher risk of cancer than the general population.

The company said it does not believe there is increased risk for cancer or death through administration of becaplermin up to multiple months.