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Elutias (ELUT) Up on Sale of Orthobiologics Business for $35M
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Elutias’ (ELUT - Free Report) shares rose 10% on Sep 18, as the company entered into an agreement to divest its Orthobiologics business unit to Berkeley Biologics LLC, a wholly-owned subsidiary of GNI Group Ltd. Shares of the company were also up in after-market on Sep 18. This surge reflects the optimism among investors regarding the potential positive impact of the sale on the company's overall financial resources.
Per the agreement, Elutias will receive cash proceeds of up to $35 million, which includes an upfront payment of $15 million and a potential for earnout payments of up to $20 million over a five-year period. The deal is expected to close by the fourth quarter of 2023.
The divestiture aligns perfectly with ELUT’s strategy to transform itself into a high-growth drug-eluting biomatrix product company. By divesting the Orthobiologics business, Elutias can now focus its resources and expertise on advancing the regulatory approval for its lead drug-eluting product, CanGaroo RM — an advanced biomatrix, infused with the antibiotic properties of rifampin and minocycline that offers extended protection for cardiac pacemakers and defibrillators.
Shares of Elutias have lost 70.8% year to date compared with the industry’s 14.0% decline.
Image Source: Zacks Investment Research
The company plans to launch CanGaroo RM by the first half of 2024 in the United States. The successful launch will enable CanGaroo RM to address a $28 billion cardiac device market. Following the divestiture, Elutias will have products in three segments — device protection, cardiovascular and women’s health.
Last month, the company changed its name from Aziyo to Elutias to reflect its strategic focus to develop and commercialize its proprietary drug-eluting biomatrix technology that aims at improving surgical outcomes.
In the women’s health segment, Elutias markets SimpliDerm, approved for the repair or replacement of damaged or insufficient integumental tissueor other homologous uses of human integument. The company is also evaluating RM version of SimpliDerm biomatrixfor use in breast reconstruction procedures. In pre-clinical and clinical studies, SimpliDerm showed accelerated tissue healing and thereby improved patient outcomes.
In the past 90 days, the Zacks Consensus Estimate forAnika Therapeutics has narrowed from a loss of $1.41 per share to a loss of $1.24 for 2023. The bottom-line estimate has widened from a loss of 79 cents to a loss of 82 cents for 2024 during the same time frame. Shares of the company have lost 41.0% year to date.
ANIK’s earnings beat estimates in one of the trailing four quarters and missed the mark in the remaining three, delivering an average negative surprise of 32.12%.
In the past 90 days, the Zacks Consensus Estimate for Annovis Bio has narrowed from a loss of $4.89 per share to a loss of $4.38 for 2023. The bottom-line estimate has narrowed from a loss of $3.18 to a loss of $2.77 for 2024 during the same time frame. Shares of the company have lost 21.0% year to date.
ANVS’ earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 13.40%.
In the past 90 days, the Zacks Consensus Estimate for ANI Pharmaceuticals’ earnings has gone up from $3.31 per share to $4.02 for 2023. The bottom-line estimate has increased from $4.32 to $4.59 for 2024 during the same time frame. Shares of the company have rallied 55.1% year to date.
ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 91.56%.
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Elutias (ELUT) Up on Sale of Orthobiologics Business for $35M
Elutias’ (ELUT - Free Report) shares rose 10% on Sep 18, as the company entered into an agreement to divest its Orthobiologics business unit to Berkeley Biologics LLC, a wholly-owned subsidiary of GNI Group Ltd. Shares of the company were also up in after-market on Sep 18. This surge reflects the optimism among investors regarding the potential positive impact of the sale on the company's overall financial resources.
Per the agreement, Elutias will receive cash proceeds of up to $35 million, which includes an upfront payment of $15 million and a potential for earnout payments of up to $20 million over a five-year period. The deal is expected to close by the fourth quarter of 2023.
The divestiture aligns perfectly with ELUT’s strategy to transform itself into a high-growth drug-eluting biomatrix product company. By divesting the Orthobiologics business, Elutias can now focus its resources and expertise on advancing the regulatory approval for its lead drug-eluting product, CanGaroo RM — an advanced biomatrix, infused with the antibiotic properties of rifampin and minocycline that offers extended protection for cardiac pacemakers and defibrillators.
Shares of Elutias have lost 70.8% year to date compared with the industry’s 14.0% decline.
Image Source: Zacks Investment Research
The company plans to launch CanGaroo RM by the first half of 2024 in the United States. The successful launch will enable CanGaroo RM to address a $28 billion cardiac device market. Following the divestiture, Elutias will have products in three segments — device protection, cardiovascular and women’s health.
Last month, the company changed its name from Aziyo to Elutias to reflect its strategic focus to develop and commercialize its proprietary drug-eluting biomatrix technology that aims at improving surgical outcomes.
In the women’s health segment, Elutias markets SimpliDerm, approved for the repair or replacement of damaged or insufficient integumental tissueor other homologous uses of human integument. The company is also evaluating RM version of SimpliDerm biomatrixfor use in breast reconstruction procedures. In pre-clinical and clinical studies, SimpliDerm showed accelerated tissue healing and thereby improved patient outcomes.
Elutia Inc. Price and Consensus
Elutia Inc. price-consensus-chart | Elutia Inc. Quote
Zacks Rank & Stocks to Consider
Elutias currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same industry are Anika Therapeutics (ANIK - Free Report) , Annovis Bio (ANVS - Free Report) and ANI Pharmaceuticals (ANIP - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate forAnika Therapeutics has narrowed from a loss of $1.41 per share to a loss of $1.24 for 2023. The bottom-line estimate has widened from a loss of 79 cents to a loss of 82 cents for 2024 during the same time frame. Shares of the company have lost 41.0% year to date.
ANIK’s earnings beat estimates in one of the trailing four quarters and missed the mark in the remaining three, delivering an average negative surprise of 32.12%.
In the past 90 days, the Zacks Consensus Estimate for Annovis Bio has narrowed from a loss of $4.89 per share to a loss of $4.38 for 2023. The bottom-line estimate has narrowed from a loss of $3.18 to a loss of $2.77 for 2024 during the same time frame. Shares of the company have lost 21.0% year to date.
ANVS’ earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 13.40%.
In the past 90 days, the Zacks Consensus Estimate for ANI Pharmaceuticals’ earnings has gone up from $3.31 per share to $4.02 for 2023. The bottom-line estimate has increased from $4.32 to $4.59 for 2024 during the same time frame. Shares of the company have rallied 55.1% year to date.
ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 91.56%.