Elutia Transitions to Direct Distribution of Its Cardiovascular Product Portfolio
Elutia (NASDAQ: ELUT) announced the transition to direct distribution of its cardiovascular product portfolio, ending its distribution agreement with LeMaitre Vascular. The company has appointed Dwayne Montgomery as Head of Cardiovascular and recruited 26 independent sales representatives dedicated to the cardiovascular line.
The cardiovascular portfolio, which includes ProxiCor®, VasCure®, and Tyke®, generated $2.9 million in revenue (12% of total) in 2024 and is expected to achieve 80% gross margins. These regenerative biomatrix products are designed for various cardiac and vascular repairs, offering advantages over synthetic alternatives by promoting healthy immune responses.
The strategic move aims to enhance top-line growth, improve gross margins and profitability, and provide greater strategic control over sales operations.
Elutia (NASDAQ: ELUT) ha annunciato la transizione alla distribuzione diretta del suo portafoglio di prodotti cardiovascolari, terminando l'accordo di distribuzione con LeMaitre Vascular. L'azienda ha nominato Dwayne Montgomery come Responsabile del Settore Cardiovascolare e ha reclutato 26 rappresentanti di vendita indipendenti dedicati alla linea cardiovascolare.
Il portafoglio cardiovascolare, che comprende ProxiCor®, VasCure® e Tyke®, ha generato 2,9 milioni di dollari di ricavi (12% del totale) nel 2024 e si prevede che raggiunga margini lordi dell'80%. Questi prodotti biomatrici rigenerativi sono progettati per diverse riparazioni cardiache e vascolari, offrendo vantaggi rispetto alle alternative sintetiche grazie alla promozione di risposte immunitarie sane.
Questa mossa strategica mira a incrementare la crescita dei ricavi, migliorare i margini lordi e la redditività, e fornire un maggiore controllo strategico sulle operazioni di vendita.
Elutia (NASDAQ: ELUT) anunció la transición a la distribución directa de su cartera de productos cardiovasculares, finalizando su acuerdo de distribución con LeMaitre Vascular. La compañía nombró a Dwayne Montgomery como Jefe del área Cardiovascular y reclutó a 26 representantes de ventas independientes dedicados a la línea cardiovascular.
La cartera cardiovascular, que incluye ProxiCor®, VasCure® y Tyke®, generó 2.9 millones de dólares en ingresos (12% del total) en 2024 y se espera que alcance un margen bruto del 80%. Estos productos biomatrices regenerativos están diseñados para diversas reparaciones cardíacas y vasculares, ofreciendo ventajas sobre las alternativas sintéticas al promover respuestas inmunitarias saludables.
Esta estrategia busca potenciar el crecimiento de los ingresos, mejorar los márgenes brutos y la rentabilidad, y proporcionar un mayor control estratégico sobre las operaciones de ventas.
Elutia (NASDAQ: ELUT)는 심혈관 제품군의 직접 유통으로 전환하며 LeMaitre Vascular와의 유통 계약을 종료했다고 발표했습니다. 회사는 Dwayne Montgomery를 심혈관 부문 책임자로 임명하고, 심혈관 라인 전담 독립 영업 사원 26명을 채용했습니다.
심혈관 제품군에는 ProxiCor®, VasCure®, Tyke®가 포함되어 있으며, 2024년에 290만 달러(전체 매출의 12%)의 수익을 창출했으며 80%의 총이익률 달성이 예상됩니다. 이 재생 바이오매트릭스 제품들은 다양한 심장 및 혈관 수리에 사용되며, 합성 대체품보다 건강한 면역 반응을 촉진하는 이점을 제공합니다.
이번 전략적 조치는 매출 성장 촉진, 총이익률 및 수익성 향상, 그리고 판매 운영에 대한 전략적 통제력 강화를 목표로 합니다.
Elutia (NASDAQ : ELUT) a annoncé la transition vers une distribution directe de son portefeuille de produits cardiovasculaires, mettant fin à son accord de distribution avec LeMaitre Vascular. La société a nommé Dwayne Montgomery responsable du secteur cardiovasculaire et recruté 26 représentants commerciaux indépendants dédiés à cette gamme de produits.
Le portefeuille cardiovasculaire, comprenant ProxiCor®, VasCure® et Tyke®, a généré 2,9 millions de dollars de revenus (12 % du total) en 2024 et devrait atteindre une marge brute de 80 %. Ces produits biomatrices régénératives sont conçus pour diverses réparations cardiaques et vasculaires, offrant des avantages par rapport aux alternatives synthétiques en favorisant des réponses immunitaires saines.
Cette décision stratégique vise à stimuler la croissance du chiffre d'affaires, améliorer les marges brutes et la rentabilité, et offrir un meilleur contrôle stratégique des opérations commerciales.
Elutia (NASDAQ: ELUT) gab den Übergang zur direkten Distribution seines kardiovaskulären Produktportfolios bekannt und beendete damit die Vertriebsvereinbarung mit LeMaitre Vascular. Das Unternehmen ernannte Dwayne Montgomery zum Leiter des Bereichs Kardiovaskulär und stellte 26 unabhängige Vertriebsmitarbeiter ein, die sich auf die kardiovaskuläre Produktlinie spezialisieren.
Das kardiovaskuläre Portfolio, zu dem ProxiCor®, VasCure® und Tyke® gehören, erzielte im Jahr 2024 einen Umsatz von 2,9 Millionen US-Dollar (12 % des Gesamtumsatzes) und soll eine Bruttomarge von 80 % erreichen. Diese regenerativen Biomatrix-Produkte sind für verschiedene Herz- und Gefäßreparaturen konzipiert und bieten Vorteile gegenüber synthetischen Alternativen, indem sie gesunde Immunantworten fördern.
Mit diesem strategischen Schritt soll das Umsatzwachstum gesteigert, die Bruttomarge und Rentabilität verbessert sowie eine stärkere strategische Kontrolle über die Vertriebsaktivitäten erreicht werden.
- Direct distribution expected to improve gross margins to 80%
- Greater strategic control over sales operations and pricing
- Established dedicated sales team of 26 representatives
- Potential for increased revenue growth from direct sales
- Premium market positioning for cardiovascular products
- Cardiovascular products represent only 12% of total revenue ($2.9M in 2024)
- Transition period could cause temporary sales disruption
- Additional operational costs from managing direct sales force
Insights
Elutia's shift to direct sales for cardiovascular products should boost margins to 80% and accelerate growth for this $2.9M revenue segment.
Elutia's strategic transition from distributor-based to direct sales for its cardiovascular portfolio represents a significant vertical integration move with clear financial upside. The company is reclaiming control of a product line that generated
The most compelling aspect is the expected gross margin improvement to approximately
Execution appears well-structured with dedicated leadership under new Cardiovascular Head Dwayne Montgomery, who brings relevant experience from Osiris Therapeutics, Smith & Nephew, and other medical device companies. The company has already recruited 26 independent (1099) sales representatives specifically for this product line, creating a specialized team without the fixed costs of full-time employees.
The separation of this sales force from their EluPro™ commercial organization demonstrates a thoughtful approach to market segmentation, allowing specialized focus on different customer bases. The transition is described as coordinated, suggesting efforts to minimize disruption to existing customer relationships during the handover from LeMaitre.
For investors, this strategic pivot signals management's confidence in their cardiovascular portfolio and ability to accelerate growth through direct market access. The move provides greater control over pricing, customer relationships, and market positioning for their differentiated biomatrix products that promote regeneration rather than synthetic approaches.
Move expected to drive both top-line growth and gross margin improvement
SILVER SPRING, Md., May 01, 2025 (GLOBE NEWSWIRE) -- Elutia Inc. (Nasdaq: ELUT) (“Elutia” or the “Company”), a pioneer in drug-eluting biomatrix products, today announced it is reclaiming U.S. sales and distribution responsibilities for its cardiovascular portfolio—including ProxiCor®, VasCure®, and Tyke®—following the conclusion of its distribution agreement with LeMaitre Vascular, Inc. The move allows Elutia to directly capture top-line revenue and should improve the gross margin and profitability of this product segment.
Elutia has appointed Dwayne Montgomery as Head of Cardiovascular to lead this newly established business unit. A seasoned commercial executive, Mr. Montgomery brings proven senior leadership experience from Osiris Therapeutics, Smith & Nephew, Guidant, and C.R. Bard.
Under Mr. Montgomery’s leadership, Elutia has recruited and mobilized a high-performing team of 26 independent (1099) sales representatives specifically for the cardiovascular line. Operating independently from the EluPro™ commercial organization, this focused structure allows both commercial teams to stay laser-focused on their respective missions. With training of the cardiovascular team now complete, Elutia has commenced direct sales as part of a coordinated transition of accounts from LeMaitre, ensuring continuity and minimizing disruption for customers.
“While we’re grateful for our partnership with LeMaitre, bringing this asset back in-house allows us to fully unlock its value,” said Dr. Randy Mills, CEO of Elutia. “Direct control over sales to the end user allows us to sharpen our execution, drive top-line growth, improve profitability and cash flow, and gives us greater strategic flexibility. Under Dwayne’s leadership, the team has already made impressive progress—and we’re just getting started.”
Elutia’s cardiovascular portfolio is expected to deliver approximately
About Elutia
Elutia develops and commercializes drug-eluting biomatrix products to improve compatibility between medical devices and the patients who need them. With a growing population in need of implantable technologies, Elutia’s mission is humanizing medicine so patients can thrive without compromise. For more information, visit www.Elutia.com.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as “projects,” “may,” “will,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential,” “promise” or similar references to future periods. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. Forward-looking statements contained in this press release include, without limitation, any statements we make regarding: improving future results of our cardiovascular portfolio by assuming sales responsibility for it, including any predictions as to future revenues, pricing or gross margins of our cardiovascular products; the timing of commencement of sales through our independent sales force; and the efficiency of the transition. . These forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in the forward-looking statements, including, but not limited to the following: our dependence on our commercial partners and independent sales agents to generate a substantial portion of our net sales; our ability to successfully commercialize, market and sell our products; our ability to continue as a going concern; our ability to achieve or sustain profitability; the risk of product liability claims and our ability to obtain or maintain adequate product liability insurance; our ability to defend against the various lawsuits and claims related to our recalled FiberCel and other viable bone matrix products and avoid a material adverse financial consequence from those lawsuits and claims; our ability to prevail in lawsuits and claims seeking indemnity, contribution and insurance coverage for FiberCel and other viable bone matrix product liabilities; the continued and future acceptance of our products by the medical community; our ability to enhance our products, expand our product indications and develop, acquire and commercialize additional product offerings; our dependence on a limited number of third-party suppliers and manufacturers, which, in certain cases are exclusive suppliers for products essential to our business; our ability to successfully realize the anticipated benefits of the sale of our Orthobiologics business; physician awareness of the distinctive characteristics, benefits, safety, clinical efficacy and cost-effectiveness of our products; our ability to compete against other companies, most of which have longer operating histories, more established products and/or greater resources than we do; pricing pressure as a result of cost-containment efforts of our customers, purchasing groups, third-party payors and governmental organizations could adversely affect our sales and profitability; our ability to obtain regulatory approval or other marketing authorizations by the FDA and comparable foreign authorities for our products and product candidates; our ability to obtain, maintain and adequately protect our intellectual property rights; and other important factors which can be found in the “Risk Factors” section of Elutia’s public filings with the Securities and Exchange Commission (“SEC”), including Elutia’s Annual Report on Form 10-K for the year ended December 31, 2024, as such factors may be updated from time to time in Elutia’s other filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investor Relations page of Elutia’s website at https://investors.elutia.com. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. Any forward-looking statement made by Elutia in this press release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable law, Elutia expressly disclaims any obligations to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Investors:
Matt Steinberg
FINN Partners
matt.steinberg@finnpartners.com
This press release was published by a CLEAR® Verified individual.
FAQ
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