Boston Scientific to Acquire Elutia's Antibiotic-Eluting Bioenvelopes EluPro and CanGaroo for $88M to Strengthen CRM Portfolio Against Medtronic

Boston Scientific Corporation Announces Collaboration withElutiaReach an agreement to acquire at a price of 88 million US dollarsElutiaTheBiological Sheath Technology.Boston Scientific's Two Products with BioShield TechnologyEluProAndCanGaroo, these technologies are specifically designed to protect patients receiving implantable medical devices.

Executive Evaluation

"EluPro fully demonstrates the scalable application capability of our proprietary drug-coated bio-platform. With the successful product launch, securing seven national procurement organization contracts and over 160 value assessment committee approvals in China, we have showcased our strength in developing, manufacturing, and commercializing these strictly regulated breakthrough products, earning high recognition from clinicians."

---Randy Mills  CEO of Elutia

"We look forward to equipping more doctors with technology aimed at improving clinical outcomes. Despite significant advancements in the treatment of cardiac implantable electronic devices, complications such as bacterial colonization, device displacement, and skin breakdown may still occur. By introducing the antibiotic-eluting EluPro BioEnvelope and CanGaroo Envelope, Boston Scientific is taking important steps to address these challenges. EluPro combines antibiotic delivery with tissue engineering technology, designed to help patients form a regenerative capsule of their own tissue over time, thereby reducing postoperative complications."

Market Evaluation

The market opportunity for Elutia technology in the United States is approximately $600 million. Boston Scientific and Elutia have previously collaborated on the distribution of bio-sleeve products. This acquisition will enable Boston Scientific to compete with Medtronic's TYRX absorbable antibacterial envelope in the cardiac rhythm management (CRM) field. The technology is applicable to the majority of Boston Scientific’s implantable device product lines.Its EluPro bio-sleeve may offer clinical operational advantages over TYRX., and is expected to become a product that representatives can easily promote. Although there may be other potential buyers (any ICD/pacemaker manufacturer), we do not anticipate other bidders due to the close cooperation between the two parties. The transaction is expected to be completed in the fourth quarter, and our forecast remains unchanged.

---BTIG

ElutiaBiological Sheath

• EluPro

EluProYesThe first antibiotic-eluting biological sleeve,Specifically designed to provide protection for patients with cardiac implantable electronic devices (CIED).

EluProLoaded with rifampicin and minocycline, specifically designed for the sustained release of antibiotics at surgical sites. Its unique extracellular matrix structure promotes the regeneration of healthy vascularized tissue, replacing fibrotic and calcified tissue.

EluPro Advantages

• Use of clinically validated antibiotics (rifampin + minocycline) to prevent bacterial colonization
  

• Specialized Extracellular Matrix Regenerates into Healthy Vascularized Tissue
  

• After hydration, it exhibits a soft touch and natural lubricity, perfectly conforming to the shape of CIED devices.

• CanGaroo

CanGarooBy sheddingMade from cellular biomaterials, utilizing porcine small intestinal submucosa extracellular matrix (SIS ECM) technology, specifically designed for constructing healthy tissue capsules.Can promote natural biological healing response and form healthy vascularized tissue. It reduces inflammation and stimulates healthy tissue formation by regulating the biological healing response, creating a suitable environment for host cell migration and tissue remodeling.

CanGaroo Technical Advantages

• Regulation of Cell Adhesion, Differentiation, Division, and Migration

• Patient's own cells can migrate and integrate into the material

• Promote natural wound healing by constructing mature structural tissues, forming a strong and permanent repair.

CanGarooThree Stages of Implantation

• Implantation Stage: Perfectly conforms to the shape of CIED devices, providing a biological scaffold for surrounding cell migration and initiating matrix renewal.

• Remodeling Phase: Modulating the biological healing response, reducing surgical inflammation, and optimizing the healing process

• New Tissue Formation: After remodeling is completed, the CIED is naturally fixed by newly formed tissue, creating a vascularized tissue capsule connected to the systemic circulation.

Elutia

ElutiaIt is an innovative medical device company dedicated to developing and commercializing drug-eluting bio-matrix products to enhance the compatibility of medical devices with patient needs.