CryoLife, Inc. (CRY) said it has inked a definitive agreement to acquire Hemosphere, Inc., a privately-held medical device company that has developed and markets the HeRO (Hemodialysis Reliable Outflow) Graft. The HeRO Graft is a proprietary graft-based solution for end-stage renal disease hemodialysis patients with limited access options and central venous obstruction.
As per the terms of the agreement, CryoLife will acquire Hemosphere for $17 million in cash, plus potential revenue milestone-based payments of up to $4.5 million. CryoLife stated that it plans to use cash on hand to finance the transaction, which is expected to close in May.
Steven Anderson, president and chief executive officer of CryoLife, commented, "The acquisition of Hemosphere significantly advances our strategic initiative to reposition CryoLife's product portfolio with higher growth, higher margin medical devices for cardiac and vascular surgery. We believe there is a significant opportunity for our sales team to leverage their strong relationships with vascular surgeons, many of whom already use our preserved human veins and arteries to provide arteriovenous (AV) access for ESRD patients, to introduce and to expand utilization of the HeRO Graft in the U.S. In addition, we believe that potential product enhancements and international sales represent incremental HeRO Graft growth opportunities."
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