Elutia to divest bioenvelopes business to Boston Scientific for $88m

Core Viewpoint - Elutia has agreed to sell its EluPro and CanGaroo bioenvelopes to Boston Scientific for $88 million in cash, allowing the company to focus on its development and commercialization efforts without diluting shareholder value [1][4]. Group 1: Transaction Details - The sale of EluPro and CanGaroo bioenvelopes is valued at $88 million in cash [1]. - The transaction is expected to close in the fourth quarter of 2025, pending customary closing conditions [4]. - BofA Securities is serving as the financial advisor to Elutia for this transaction [4]. Group 2: Product Information - The EluPro BioEnvelope is designed to facilitate the regeneration of healthy, vascularized tissue while preventing post-operative complications [1]. - The CanGaroo Envelope aims to create a conducive environment for tissue healing by regulating the biological response to injury [2]. - Both bioenvelopes are part of Elutia's proprietary drug-eluting biologics platform, which has demonstrated effectiveness at scale [2]. Group 3: Financial Implications - The proceeds from the sale will fully fund the advancement and commercialization of Elutia's NXT-41 and NXT-41x products [4]. - The sale is expected to enhance Elutia's financial position by allowing the company to eliminate outstanding debt and resolve litigation related to its previously divested orthobiologics business [3]. Group 4: Market Focus - Elutia plans to focus its resources on advancing its SimpliDerm franchise and its drug-eluting pipeline within the US breast reconstruction market, which is valued at $1.5 billion [4]. - The company has secured seven national group purchasing organization contracts and over 160 value analysis committee approvals for EluPro, indicating strong market acceptance [3].