CryoLife, a leading medical device and tissue processing company focused on cardiac surgery, announced that it has exercised its right to acquire the PhotoFix bovine pericardium patch from Genesee BioMedical for $2.3m in cash.
CryoLife acquired the distribution rights and purchase option for PhotoFix in August 2014.
J. Patrick Mackin, Chairman, President, and Chief Executive Officer of CryoLife, said, "PhotoFix is a highly differentiated product that complements our expanding portfolio of cardiac surgery products.
"We achieved $1.4 million in PhotoFix sales in 2015 and have a significant opportunity to continue driving adoption in the market, particularly with our expanded cardiac surgery sales force that doubled in number following the acquisition of On-X earlier this year.
"We believe PhotoFix’s photo-oxidation process is unique and provides clinical advantages that will support its sales growth and ultimately its adoption as a leading biological patch in the $30 million market for cardiac surgery."
Under the terms of the agreement, CryoLife has exercised its option to acquire all rights to the PhotoFix bovine pericardial patch for $2.3 million in cash. This includes approximately $0.6 million that CryoLife previously provided to Genesee as an advance under the distribution agreement.
Genesee has agreed to continue to supply PhotoFix to CryoLife until CryoLife establishes manufacturing capabilities at its headquarters in suburban Atlanta, GA. CryoLife anticipates it will be manufacturing PhotoFix by mid 2017.
Headquartered in suburban Atlanta, Georgia, CryoLife is a leader in the manufacturing, processing, and distribution of implantable living tissues and medical devices used in cardiac surgical procedures. CryoLife markets and sells products in more than 80 countries worldwide.