Dive Brief:
- Boston Scientific has agreed to buy Elutia’s two bioenvelope products for $88 million, the companies said Tuesday.
- The agreement will give Boston Scientific control of Elupro and Cangaroo, devices designed to promote wound healing to prevent complications after pacemaker or defibrillator implantation.
- Elupro and Cangaroo compete with Medtronic’s TYRX. BTIG analysts said in a note to investors that they believe “the Elupro bioenvelope may offer clinical and handling advantages over TYRX.”
Dive Insight:
Elutia received clearance for Elupro in June 2024 and began a full commercial launch at the start of 2025. The device has an extracellular matrix to support wound healing and potentially facilitate re-operative procedures by reducing scar formation and fibrosis. Elupro gradually releases the antibiotics rifampin and minocycline into the surrounding tissue to provide antimicrobial protection after the procedure.
Cangaroo is a first-generation version of the product that lacks antibiotics. Elutia made Elupro the focus of its business after securing clearance to sell the bioenvelope in the U.S., telling investors last month that its success is highly dependent on the commercialization, marketing and sale of the device.
Elutia enlisted Boston Scientific to support the launch. Boston Scientific acts as a sales agent for Elutia, giving the company access to around 900 sales representatives and clinical specialists to complement its own direct sales force. The deal is scheduled to close in the fourth quarter. When that happens, Boston Scientific will take over commercialization of the bioenvelopes.
BTIG analysts said they expect the bioenvelopes to be “a relatively low-effort product sale” for Boston Scientific’s sales reps. The technology can be used with many of Boston Scientific’s implantable devices, the analysts said, and will compete with Medtronic’s TYRX. Medtronic’s device is synthetic and lacks the antibiotic-eluting feature of Elupro. The Elutia devices are biomatrices.
The analysts estimate Elupro and TYRX are competing for a $600 million opportunity in the U.S. cardiac rhythm management sector. Bioenvelope revenue was $3.5 million in the second quarter, the analysts said. Elupro, months into its launch, contributed around two-thirds of the sales.
Boston Scientific is paying a valuation multiple that is roughly in line with the historical average for sales of fast-growing businesses, the analysts said. While the bioenvelopes could be of interest to any company that sells pacemakers or defibrillators, the analysts do not expect additional bidders for the assets because Boston Scientific and Elutia already have a close partnership.
As part of the deal, Elutia has agreed to comply with non-competition restrictions for five years. Elutia is shifting its focus to its Simpliderm cellular dermal matrix devices and drug-eluting pipeline in the $1.5 billion U.S. breast reconstruction market.
In August, the company said it expects to receive clearance for a biomatrix for breast reconstruction in 2026 and launch a drug-eluting version in 2027.
