A Medical Device Daily
Biomaterials and biosurgical firm CryoLife (Kennesaw, Georgia) last week said that it has decided against pursuing a sale of the company or any of its assets and will pursue growth via three strategies. These strategies, it said, were evaluated as part of a review begun in January 2006 at the request of the company’s board and with the assistance of Piper Jaffray.
Besides continuing to focus on growing its strengths in its key markets, it will:
- identify and evaluate acquisition opportunities of complementary product lines and companies;
- license company technology to third parties for non-competing uses; and
- analyze and identify underperforming assets for potential sale or disposal.
It said that it has determined that shareholder value would not be improved by a sale of the company or any assets. It concluded that the significant improvements in the company’s operating results in the second and third quarters, coupled with recent improvements in its liquidity, make it unnecessary for CryoLife to pursue a capital-raising transaction at this time.
“We believe that we are 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,” said Steven Anderson, CryoLife’s president/CEO.
“In fact,” he continued, “our recently announced licensing agreement with BioForm Medical [San Mateo, California], to develop and market BioGlue for cosmetic and plastic surgeries is an example of our commitment to this value enhancement strategy. This marks our first initiative in the implementation of our successful strategic alternatives review and we look forward to continued progress in pursuing our strategic opportunities."