Artivion To Receive Milestone Payment From Baxter On FDA PMA Approval For PerClot

(RTTNews) - Artivion, Inc. (AORT) announced the FDA granted premarket application approval of PERCLOT Absorbable Hemostatic System for use to control bleeding in certain open and laparoscopic surgical procedures.

Artivion sold the PerClot product line to Baxter International Inc. (BAX) in July 2021. Pursuant to the agreements with Baxter, Artivion will transfer ownership of the PMA to Baxter following approval. Shipment of PerClot product to Baxter will commence upon receipt of a milestone payment of $18.75 million in cash, $4.5 million of which will be paid to Artivion's former partner Starch Medical, Inc.

With this latest milestone payment, Baxter will have paid approximately $44 million in cash to Artivion, of which $10.5 million was paid to Starch Medical.

Artivion plans to use the net proceeds for general corporate purposes, contingent consideration obligations, and potential debt repayment.

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