ATLANTA, Feb. 4, 2016 /PRNewswire/ -- CryoLife, Inc.
(NYSE: CRY), a leading medical device and tissue processing company
focused on cardiac surgery, announced today that it sold its HeRO
Graft product line to Merit Medical Systems, Inc. (NASDAQ: MMSI)
for $18.5 million in cash.
J. Patrick Mackin, Chairman,
President, and Chief Executive Officer of CryoLife, said, "The
recent acquisition of On-X Life Technologies strengthened our
strategic focus on aortic and mitral valve repair and replacement
surgery. The transaction more than doubled our U.S. cardiac
surgery sales force. The sale of the HeRO Graft product line
will allow our commercial organization to have a greater focus on
selling our expanded portfolio of cardiac surgery products."
Mr. Mackin added, "We believe this transaction represents a
positive opportunity for both companies. The HeRO Graft is a
unique product within the dialysis continuum of care and it is
proven to reduce bacteremia rates by 69% as compared to patients
with tunneled dialysis catheters. Merit has a complementary
portfolio of vascular access and dialysis related products, with
corresponding customer relationships, putting them in a strong
position to broaden HeRO Graft access for patients with end-stage
renal disease."
Under terms of the agreement, Merit acquired the HeRO Graft
product line, including worldwide marketing rights, customer
relationships, intellectual property, equipment, and inventory.
CryoLife will continue to manufacture the HeRO Graft for up
to six months under a transition supply agreement, after which
Merit will be responsible for manufacturing. For the year
ended December 31, 2015, CryoLife's
HeRO Graft revenue was $7.5
million.
D. Ashley Lee, Executive Vice
President, Chief Operating Officer, and Chief Financial Officer of
CryoLife, said, "We expect to utilize the cash proceeds from the
sale to pay down our $75 million term
loan that we secured as part of our recent acquisition of On-X and
for general corporate purposes. We plan to issue our initial
2016 financial guidance in connection with our 2015 year-end
earnings announcement, which is currently scheduled for
February 16, 2016."
About CryoLife
Headquartered in suburban Atlanta,
Georgia, CryoLife is a leader in the manufacturing,
processing, and distribution of implantable living tissues and
medical devices used in cardiac surgical procedures. CryoLife
markets and sells products in more than 75 countries
worldwide. For additional information about CryoLife, visit
our website, www.cryolife.com.
Statements made in this press release that look forward in
time or that express management's beliefs, expectations, or hopes
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such
forward-looking statements reflect the views of management at the
time such statements are made. These statements include those
regarding CryoLife's ability to have a greater focus on
selling its expanded portfolio of cardiac surgery products;
CryoLife's obligation to continue to manufacture the HeRO
Graft for up to six months; Merit's assumption of the
responsibility to manufacture the HeRO Graft after the six-month
transition period; and the timing of the issuance of our initial
2016 financial guidance. These forward-looking statements are
subject to a number of risks, uncertainties, estimates, and
assumptions that may cause actual results to differ materially from
current expectations These risks and uncertainties include that the
expected market opportunities for mechanical heart valves may be
incorrect and/or may shrink due to factors beyond our control; and
the expected benefits of focusing market opportunities may be
incorrect. These risks and uncertainties include the risk
factors detailed in our Securities and Exchange Commission filings,
including our Form 10-K for the year ended December 31, 2014 and our subsequent filings with
the SEC. CryoLife does not undertake to update its forward-looking
statements.
CryoLife
D. Ashley
Lee
Executive Vice
President, Chief Financial Officer and
Chief Operating
Officer
Phone:
770-419-3355
|
The Ruth
Group
Nick Laudico / Zack
Kubow
646-536-7030 /
7020
nlaudico@theruthgroup.com
zkubow@theruthgroup.com
|
Logo -
http://photos.prnewswire.com/prnh/20140319/MM86518LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cryolife-announces-sale-of-hero-graft-to-merit-medical-systems-300215178.html
SOURCE CryoLife, Inc.