CryoLife Acquires Worldwide Distribution Rights For ProCol - Quick Facts

(RTTNews) - CryoLife Inc. (CRY) announced it has acquired the exclusive worldwide distribution rights for the ProCol Vascular Bioprosthesis from Hancock Jaffe Laboratories, Inc.

CryoLife will receive exclusive worldwide distribution rights for ProCol for up to five years (a three-year term with two one-year renewal terms at CryoLife's option), a purchase option on the ProCol product line, first right of refusal on certain other applications of the ProCol technology, and approximately 4,000 units of ProCol inventory. Beginning 24 months after execution of the agreement, CryoLife has the right to acquire the ProCol product line from Hancock Jaffe.

CryoLife will reimburse Hancock Jaffe for up to $2.3 million of its ProCol production costs over the next four quarters, beginning with the second quarter of 2014, with no more than $650 thousand payable in any quarter.

Profits from CryoLife's sales of ProCol after the initial approximately 4,000 units will be shared equally by the parties, after taking into account the transfer price paid to Hancock Jaffe and a distribution fee earned by CryoLife.

ProCol, which is approved for sale in the United States, is a natural biological graft derived from a bovine mesenteric vein that provides vascular access for end-stage renal disease hemodialysis patients.