--- title: "Elutia closes CIED business sale to Boston Scientific" url: "https://aibio.space/news/elutia-closes-cied-business-sale-boston-scientific-puts-8-million/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-10-07" section: "Mergers" tickers: "NASDAQ:ELUT" source: "https://www.sec.gov/Archives/edgar/data/1708527/000110465925097561/tm2528122d1_8k.htm" summary: "The sale closed October 1, 2025 for $88 million in cash, with $8 million held in escrow. Elutia used about $27.8 million to repay SWK Funding debt, and its" --- By the aibio.space news desk. Sources - [ELUTIA INC. Form 8-K filed October 7, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1708527/000110465925097561/tm2528122d1_8k.htm) - [ELUTIA INC. exhibit tm2528122d1_ex99-1.htm to the October 7, 2025 Form 8-K (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1708527/000110465925097561/tm2528122d1_ex99-1.htm) - [ELUTIA INC. exhibit tm2528122d1_ex10-2.htm to the October 7, 2025 Form 8-K (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1708527/000110465925097561/tm2528122d1_ex10-2.htm) - [ELUTIA INC. Form 10-K filed March 11, 2025: business overview and signatures (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1708527/000155837025002719/elut-20241231x10k.htm) [ELUT](https://aibio.space/companies/elutia/) 2025-10-07 # Elutia closes CIED business sale to Boston Scientific, puts $8 million in escrow, repays SWK loan Tickers [ELUT](https://aibio.space/companies/elutia/) The sale closed October 1, 2025 for $88 million in cash, with $8 million held in escrow. Elutia used about $27.8 million to repay SWK Funding debt, and its 2024 annual report carried a going-concern warning after a net loss of $53.9 million. ## Key facts - **Company**: Elutia, Inc. (NASDAQ: ELUT) - **News type**: Mergers - **Primary source**: [ELUTIA INC. Form 8-K filed October 7, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1708527/000110465925097561/tm2528122d1_8k.htm) *An empty boardroom with a long table. CC0, via rawpixel. The picture shows the field, not the companies named.* Elutia Inc. (Nasdaq: [ELUT](https://aibio.space/companies/elutia/)) completed the sale of its cardiac implantable electronic device business, called the CIED Business, to Boston Scientific Corporation and Cardiac Pacemakers, Inc. The sale closed on October 1, 2025 under an asset purchase agreement dated September 8, 2025. The company reported the closing in a [Form 8-K filed October 7, 2025](https://www.sec.gov/Archives/edgar/data/1708527/000110465925097561/tm2528122d1_8k.htm). The press release calls the unit its BioEnvelope business and gives the price as $88 million in cash. ## The terms The buyers took substantially all of the assets of the CIED Business, including the CanGaroo, CanGaroo RM, EluPro and CIED envelope products. The 8-K says those assets made up substantially all of the assets of Elutia's Device Protection segment. Elutia and its subsidiary Elutia Med LLC were the sellers. At closing, $8 million of the price went into escrow with a bank for twelve months as an indemnification fund for certain breaches of the purchase agreement by the sellers. The remaining $80.3 million, which includes a preliminary inventory adjustment, was paid to or for the sellers. The price can still change after a post-closing inventory valuation. The sellers also agreed to a five-year non-competition covenant in business lines related to the CIED Business and to paid transition services, generally for 12 to 30 months. ## Debt repayment and the Ligand royalty Elutia used approximately $27.8 million of the proceeds to pay in full and terminate its credit agreement dated August 10, 2022. SWK Funding LLC was the agent under that agreement. Elutia Med also signed a Consent, Release and Amendment No. 3 with Ligand Pharmaceuticals Incorporated on October 1, 2025. Under a royalty agreement dated May 31, 2017, Elutia Med pays Ligand 5.0% of future sales of the CanGaroo, ProxiCor, Tyke and VasCure products, and substantially similar products such as EluPro, through May 31, 2027. Annual minimum payments are $4.4 million. Ligand consented to the sale and released its security interest in the CIED assets. As partial consideration, Elutia Med paid Ligand $1.1 million in accrued unpaid royalty obligations. The royalty is one of the company's remaining obligations after the sale. The press release lists its ability to manage significant indebtedness, including that revenue interest obligation to Ligand, among its risk factors. ## Losses and the going-concern warning The 2024 annual report, filed March 11, 2025, says the company has identified conditions and events that raise substantial doubt about its ability to continue as a going concern. It reports a net loss of $53.9 million for 2024 and an accumulated deficit of $229.6 million at December 31, 2024. The report says the company has incurred net losses since its inception in 2015. The press release lists the company's ability to continue as a going concern, and its ability to raise funds in the future, among its risks. The 2024 annual report predates the sale, so it does not assess the company's position after the closing. ## What the company says comes next The press release says the sale strengthens the balance sheet to fund development and launch of the NXT-41 platform. CEO Randy Mills said the company plans to bring NXT-41x to market in the first half of 2027. NXT-41x is a biomatrix that Elutia says addresses the root causes of reconstruction infections after mastectomy. The release says Elutia will leverage its drug-eluting biologics platform with a more concentrated focus. The purchase price can move with the inventory valuation, and the escrow runs for twelve months. The 8-K gives no clinical or regulatory timetable for NXT-41x. Chief Financial Officer Matthew Ferguson signed the 8-K. The 2024 annual report names Kevin Rakin as chairperson of the board. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story ELUT Elutia, Inc. 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Cite as: aibio.space, "Elutia closes CIED business sale to Boston Scientific", 2025-10-07, https://aibio.space/news/elutia-closes-cied-business-sale-boston-scientific-puts-8-million/