A Medical Device Daily
Biomaterials processorCryoLife (Kennesaw, Georgia) and Regeneration Technologies (RTI; Alachua, Florida), a processor of biologic implants, yesterday reported an exchange and service agreement in which CryoLife will cease accepting donated human orthopedic tissues for processing on Jan. 1 and will work to transition existing arrangements for recovery of human orthopedic tissue to RTI.
At the same time, RTI will cease accepting donated human cardiovascular tissues for processing and will transition its arrangements for recovery of human cardiovascular tissue to CryoLife. The companies said that the agreement also includes the transfer of “certain physical assets,” those assets not disclosed.
No cash was exchanged in the transaction, the companies said.
“This agreement will allow each gift of donated cardiac, vascular and orthopedic tissue to be processed by an organization that has a greater focus on surgeries, utilizing that specific type of donated tissue, thereby improving how these gifts are processed for their intended purpose,” said Steven Anderson, president/CEO, CryoLife. “CryoLife will now sharpen its corporate focus on its core business of developing and providing innovative products and preserved tissues to cardiac and vascular surgeons and their patients.”
The agreement follows the report by CryoLife in November that it decided against a sale of the company or any of its assets in order to purse new growth strategies (Medical Device Daily, Nov. 6, 2006).
At the time, Anderson said that CryoLife was “embarking on a strategy that will lead to significant revenue and earnings growth in the years to come, and we expect that we will soon be able to report continued progress on these initiatives.”
RTI will continue to distribute its existing cardiovascular tissue inventory and CryoLife will continue to distribute its existing orthopedic tissue inventory through June 30, 2008. After that date, CryoLife will become entitled to distribute RTI’s remaining cardiovascular tissue inventory and RTI will become entitled to distribute CryoLife’s remaining orthopedic tissue inventory through Dec. 31, 2008.
From July 1, 2008, through Dec. 31, 2016, CryoLife will not market or solicit orders for certain human orthopedic tissues for sports injuries, and RTI has agreed not to market or solicit orders for human cardiac and vascular tissues.