The history of BBS reaches back to 30–40 years, when research on bone grafting and bone substitutes started in the Universities of Oulu and Tampere. Also the product development started as a university project in Oulu already in 1990s. It had been seen that a protein fraction extracted from bovine bones was able to induce bone formation in animal tests.

Since 1997 professor Pekka Jalovaara is in charge of the project. In 2003, BBS-Bioactive Bone Substitutes Oyj was established in order to develop and commercialize a bone substitute product. Jalovaara has been responsible for research as well as funding and compilation of research teams. He has been the CEO of BBS since May 2012.

The bone extract from reindeer bone has proved to be more effective in bone formation than the bone extracts from other domestic animals. The logical explanation to this phenomenon is the fact that reindeer in itself is a bone factory growing antlers (even 30% of body weight) and shedding them every year. This ability seems to reflect the whole skeletal system of reindeer. Thus the ecological raw material is fully natural and renewable.

Soon it was evident that the findings could be utilized in bone healing. A product development project was set up aiming at a development of bone substitute based on bone extract from reindeer bones mimicking demineralized bone matrix (DBM) products.