CryoLife receives payment following Bard’s Medafor takeover

CryoLife has announced that it expects to receive an initial payment of approximately $15.1 million (9.38 million pounds) following the acquisition of Medafor by CR Bard.

This fee will come in exchange for CryoLife's 2,379,554 shares of Medafor common stock, while the firm could also receive additional payments of up to $8.4 million upon the release of funds held in escrow and the satisfaction of certain contingent milestones.

According to CryoLife's management, Bard's decision to acquire haemostatic technology and absorbable haemostat developer Medafor is a "strong validation" of the significant market opportunity provided by CryoLife's powdered haemostat PerClot.

Steven Anderson, chairman, president and chief executive officer of CryoLife, said: "We are pleased that our modest investment in Medafor has yielded such a positive return for our shareholders."

The takeover of Medafor was agreed in August 2013 and allow Bard to add the Arista MPH Haemostat to its line-up of products.