Come on, that's soooo cool! :)
The implant has been in development since the mid 90s, and is intended for use in the small finger and toe joints of osteoarthritis and rheumatoid arthritis patients. It is made from a polylactide copolymer, and is inserted within the joint capsule of the affected digit.
Once in place, it reduces pain by acting as a cushioning spacer between the exposed bone ends, while also also restoring a reasonable range of movement, and keeping the already-compromised cartilage from being damaged further. Additionally, however, it triggers the body to produce new fibrous tissue, which proceeds to gradually replace the implant. According to the university, all that's left eventually is a fully-functioning "neojoint," made from the body's own cells.