Artivion Announces FDA PMA Approval of PerClot and Transfer of PMA to Baxter
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Artivion announced FDA PMA approval of PerClot, a hemostatic system for controlling bleeding in surgical procedures. Artivion sold the product line to Baxter in July 2021 and will transfer the PMA to Baxter following approval. Baxter will pay a milestone payment of $18.75 million, with $4.5 million going to Artivion's former partner Starch Medical.
May 23, 2023 | 12:05 pm
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Artivion receives FDA PMA approval for PerClot, which was sold to Baxter. Artivion will receive a milestone payment of $18.75 million.
The FDA approval of PerClot is a positive development for Artivion, as it validates the product's efficacy and safety. The milestone payment of $18.75 million will provide additional cash inflow for the company, which could be used for further research and development or other corporate purposes. This news is likely to have a positive impact on Artivion's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Baxter will receive the PMA for PerClot from Artivion following FDA approval, and will make a milestone payment of $18.75 million.
The FDA approval of PerClot and the transfer of the PMA to Baxter is a positive development for the company, as it expands their product portfolio and potentially increases their market share in the surgical hemostatic market. The milestone payment of $18.75 million is an expected expense for Baxter, but the potential revenue generated from the sales of PerClot could offset this cost. This news is likely to have a positive impact on Baxter's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100