Gaithersburg, Maryland-based Elutia agreed to sell its EluPro and CanGaroo drug-eluting bioenvelopes in the cash deal. It designed these technologies to protect patients receiving implantable medical devices.
Elutia says the deal underscores the value of its proprietary drug-eluting biologic technology platform. It also allows the company to complete the development and commercialization of its near-term pipeline without the need for shareholder dilution.
The company designed EluPro to prevent post-operative complications in patients with implantable cardiac devices. Those include pacemakers and internal defibrillators. The system received FDA clearance in June 2024 and also has approval for use with additional devices. That extends to neuromodulators and neurostimulators for pain management, epilepsy, incontinence and sleep apnea.
CanGaroo is a porcine small intestine submucosa extracellular matrix that creates a healthy pocket for implanted devices. The bioenvelope stabilizes the implantable devices, such as pacemakers and defibrillators, as well.
Boston Scientific develops a number of implantable devices, including leading defibrillators and pacemakers.
“EluPro has clearly demonstrated that our proprietary drug-eluting biologics platform works at scale,” said Dr. Randy Mills, CEO of Elutia. “With the successful launch of EluPro, seven national group purchasing organization contracts secured and more than 160 value analysis committee approvals, we have shown that we can develop, manufacture and commercialize these highly regulated breakthrough products, and that they are valued by physicians.
The company now plans to move forward with its NXT-41x, a next-gen antibiotic biomatrix for breast reconstruction. It expects this deal to close in the fourth quarter of 2025.
Boston Scientific officials comment on the deal
In a post on LinkedIn, the Boston Scientific Cardiology page announced the deal, saying the Elutia products can help further strengthen the company’s ability to protect patients.
“We look forward to equipping more physicians with technologies designed to improve clinical outcomes,” the company wrote.
Ken Stein, the company’s SVP and global chief medical officer, said that, despite significant advancements in cardiac implantable electronic device therapy, complications like bacterial colonization, migration and skin erosion can still occur.
The analysts’ take on the Elutia-Boston Scientific deal
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang say the market opportunity for Elutia’s technology registers at around $600 million in the U.S.
They note that Boston Scientific and Elutia had a pre-existing partnership to distribute the bioenvelope products. Notably, they say it positions the company to compete against Medtronic in the cardiac rhythm management (CRM) space with its TYRX absorbable antibacterial envelope.
“We see this as a strong fit for BSX, since the bioenvelope technology can be used for many of the implantable devices in its portfolio. Moreover, it gives the company the ability to offer a product that competes against long-standing incumbent Medtronic’s TYRX pouch. We believe the EluPro bioenvelope may offer clinical and handling advantages over TYRX and expect this to be a relatively low-effort product sale for BSX reps,” the analysts wrote. “While there could potentially be other interested acquirers (any ICD/pacemaker manufacturer), we do not expect additional bidders, since BSX and Elutia already have a close partnership. The transaction is expected to close in Q4. Our estimates remain unchanged.”
