Berkeley Biologics, a wholly owned subsidiary of GNI Group, has announced the acquisition of the Orthobiologics business unit from Elutia for cash proceeds of up to $35m.
Elutia will receive an upfront payment of $15m at closing and potential earnout payments of up to $20m over five years.
Elutia is advancing its efforts to obtain clearance from the US Food and Drug Administration for its drug-eluting product, CanGaroo.
CanGaroo features an advanced biomatrix, along with the drugs rifampin and minocycline (RM), to provide prolonged antibiotic protection for cardiac pacemakers and defibrillators.
Elutia aims to launch CanGaroo in the first half of next year.
The company’s product portfolio also consists of an RM version of its SimpliDerm biomatrix for use in procedures related to breast reconstruction.
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Elutia president and CEO Dr Randy Mills said: “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.
“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.”
The deal is anticipated to be completed in the fourth quarter of this year.
Elutia is focused on the development and commercialisation of biologic products to enhance compatibility between medical devices and the patients who require them.