Back in August CR Bard agreed to purchase hemostat company Medafor, Inc. as we reported here. Now the deal has closed it has been announced that CryoLife, Inc., a Medafor shareholder, will receive a welcome $15.1 million for its interest.
CryoLife, Inc. held 2,379,554 shares of Medafor common stock until the newly announced completion of the hemostat company’s acquisition by CR Bard, Inc. CryoLife now expects to receive an initial payment of approximately $15.1 million.
Additional payments of up to $8.4 million could be heading CryoLife’s way upon the release of funds held in escrow and the satisfaction of certain contingent milestones. CryoLife’s carrying basis for the 2,379,554 shares of Medafor common stock was approximately $2.6 million, so it will be pretty impressed by the uplift.
Medafor, Inc., develops, manufactures and supplies hemostatic technology and absorbable hemostats. CryoLife has somewhat won on the swings and the roundabouts then, having its own PerClot® hemostat on the market in Europe and on its way to gaining approval in the United States.
Steven G. Anderson, chairman, president and CEO of CryoLife, said, “We are pleased that our modest investment in Medafor has yielded such a positive return for our shareholders. The proceeds from the transaction and the resulting gain of $12.5 million will be recorded in the fourth quarter 2013, and will contribute to the continued execution of our growth strategy and shareholder dividend.”
Mr. Anderson added, “The Medafor acquisition by Bard also provides strong validation of the significant market opportunity for our powdered hemostat, PerClot, which we believe has significant clinical advantages over the Medafor product. PerClot is currently approved in Europe and other select international markets. In the U.S. and Japan, we are moving forward on the regulatory pathway, with FDA approval to initiate the PerClot U.S. clinical trial expected before the end of 2013.”
Source: CryoLife, Inc.