Elutia, a pioneer in drug-eluting biomatrix technologies, began a deal to sell its EluPro and CanGaroo bioenvelopes to Boston Scientific for $88 million in cash.

The bioenvelopes were designed to protect patients receiving implantable medical devices. Elutia said the transaction underscores the value of its proprietary drug-eluting biologic technology platform and enables it to complete development and commercialization of its blockbuster pipeline without needing shareholding dilution.

The deal positions Elutia to remove outstanding debt, resolve litigation from its previously divested orthobiologics business, and leaves it with a significantly lower burn rate. The non-dilutive funding will let the company advance and commercialize NXT-41 and NXT-41X as well.

The company can now focus its resources toward advancing its SimpliDerm franchise and drug-eluting pipeline in the $1.5 billion breast reconstruction market.

“EluPro has clearly demonstrated that our proprietary drug-eluting biologics platform works at scale,” said Dr. Randy Mills, CEO of Elutia. “With the successful launch of EluPro, seven national group purchasing organization contracts secured and more than 160 value analysis committee approvals, we have shown that we can develop, manufacture and commercialize these highly regulated breakthrough products, and that they are valued by physicians.”

The transaction is expected to close in Q4 2025.

“Now, with a transformed balance sheet, an established commercial engine and a proven team, we are ready to repeat our success with NXT-41x,” said Dr. Mills. “This novel technology is designed to transform the $1.5 billion breast reconstruction market and help women recovering from breast cancer to thrive without compromise.”