Michael Barbella, Managing Editor09.19.23
Elutia Inc. has divested its Orthobiologics business unit to Berkeley Biologics LLC, a wholly owned subsidiary of GNI Group Ltd., for $35 million.
Expected to close in Q4, the transaction is comprised of $15 million upfront payment at closing plus potential earnout payments of up to $20 million over a five-year period.
The deal represents a pivotal milestone in Elutia’s progress toward pioneering the drug-eluting biomatrix. The company continues to make progress towards gaining U.S. Food and Drug Administration clearance for CanGaroo RM, its lead drug-eluting product. CanGaroo RM features an advanced biomatrix and the drugs rifampin and minocycline (RM) for extended antibiotic protection for cardiac pacemakers and defibrillators, a $28 billion market. Elutia is targeting the first half of 2024 for the launch of CanGaroo RM. The company’s pipeline also includes an RM version of its SimpliDerm biomatrix for use in breast reconstruction procedures.
“Our mission is to provide physicians with the wound healing benefits of natural biological materials combined with the power of targeted therapeutics so that their patients can thrive without compromise,” Elutia President/CEO Dr. Randy Mills said. “With the development of the drug-eluting biomatrix, we are creating a new biosurgery paradigm to deliver better surgical outcomes. This transaction allows us to focus our efforts on bringing this valuable technology to market, with the confidence that our Orthobiologics business and team are in great hands with Berkeley Biologics.”
Mizuho Securities USA LLC acted as advisor to Elutia Inc. for the sale.
Elutia develops and commercializes biologic products to improve compatibility between medical devices and patients. With a growing population in need of implantable technologies, Elutia’s mission is humanizing medicine.
Expected to close in Q4, the transaction is comprised of $15 million upfront payment at closing plus potential earnout payments of up to $20 million over a five-year period.
The deal represents a pivotal milestone in Elutia’s progress toward pioneering the drug-eluting biomatrix. The company continues to make progress towards gaining U.S. Food and Drug Administration clearance for CanGaroo RM, its lead drug-eluting product. CanGaroo RM features an advanced biomatrix and the drugs rifampin and minocycline (RM) for extended antibiotic protection for cardiac pacemakers and defibrillators, a $28 billion market. Elutia is targeting the first half of 2024 for the launch of CanGaroo RM. The company’s pipeline also includes an RM version of its SimpliDerm biomatrix for use in breast reconstruction procedures.
“Our mission is to provide physicians with the wound healing benefits of natural biological materials combined with the power of targeted therapeutics so that their patients can thrive without compromise,” Elutia President/CEO Dr. Randy Mills said. “With the development of the drug-eluting biomatrix, we are creating a new biosurgery paradigm to deliver better surgical outcomes. This transaction allows us to focus our efforts on bringing this valuable technology to market, with the confidence that our Orthobiologics business and team are in great hands with Berkeley Biologics.”
Mizuho Securities USA LLC acted as advisor to Elutia Inc. for the sale.
Elutia develops and commercializes biologic products to improve compatibility between medical devices and patients. With a growing population in need of implantable technologies, Elutia’s mission is humanizing medicine.