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CryoLife Says Medafor Gave Notice Of Intent To Terminate Hemostase Distribution Deal

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
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In a filing with the regulatory, CryoLife, Inc. (CRY) disclosed that, on December 2, 2009, Medafor informed of its belief about company's material breach of duties and obligations under exclusive distribution agreement related to Hemostase, an absorbable blood clotting agent.

CryoLife said Medafor gave notice of its intent to terminate the agreement, if the breach is not cured by January 8, 2010. Medafor claims that a material breach has occurred because CryoLife has pursued sales in Spain with respect to certain uses that are excluded from the agreement.

CryoLife said it does not believe the agreement, which has a three-year term from its effective date of May 1, 2008, will terminate on January 8, 2010.

Third quarter revenues from HemoStase product for CryoLife was $1.56 million, constituting 6% of total revenues for the quarter.

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