Elutia Sells Off Orthobiologics Business Unit

Elutia, formerly branded as Aziyo Biologics, announced the divestiture of its orthobiologics business unit to Berkeley Biologics/Berkeley Advanced Biomaterials. Elutia will receive cash proceeds of up to $35 million, comprising an upfront payment at closing of $15 million plus potential earnout payments of up to $20 million over five years.

In July 2023, Aziyo announced a voluntary recall of viable bone matrix products. The company’s portfolio had included ViBone, FiberCel and OsteGro V, a viable cell bone matrix containing cancellous bone particles plus demineralized cortical bone particles and fibers. In late 2020, the company announced the pricing of its initial public offering, followed by the expansion of its U.S. distribution agreement with Surgalign.

Elutia’s divestiture of its orthobiologics business is expected to close in 4Q23.

Source: Elutia