Elutia Inc.

Elutia Inc. has received the full $8 million held in escrow from Boston Scientific Corporation tied to the sale of its BioEnvelope business, with the payment released on schedule and with no claims. The escrow release follows an indemnity holdback period that began with the October 1, 2025 closing of the $88 million transaction, and it marks the third of three funding milestones Elutia outlined in its second quarter earnings release, after the Avenue Capital facility closed on August 11, 2026 and the SimpliDerm divestiture closed on August 17, 2026. Elutia said it believes it is funded through the first full year of the NXT-41x commercial launch and into 2029 without the need for an equity offering, and it continues to expect a favorable FDA clearance decision for NXT-41x in the first half of 2027. NXT-41x, the company's next-generation antibiotic-eluting surgical matrix, is being developed for the $1.5 billion U.S. plastic and reconstructive surgery market, where complex procedures can carry post-operative infection rates of 15 to 20 percent. In an independent blinded survey of 50 board-certified plastic and reconstructive surgeons reported in August 2026, 86 percent said the matrices they use today increase infection risk and 96 percent expressed interest in incorporating NXT-41x into their practice.

Elutia said it expects FDA clearance for its NXT-41x product in the first half of 2027 and reiterated expectations for NXT-41 clearance in the fourth quarter of 2026. The company also announced up to $26 million of additional capital with no equity offering and a definitive agreement to sell SimpliDerm for up to $11 million. Second quarter net sales were $2.4 million, down from $2.7 million a year earlier, while GAAP gross margin improved to 59.6% from 52.9%. Management said it targets gross margins greater than 80% at scale and expects at least $300 million of revenue capacity at launch. A blinded survey of 50 plastic and reconstructive surgeons found 96% expressed interest in adopting NXT-41x and 92% would champion it at their hospital's value analysis committee.

Elutia has signed a definitive agreement to sell its SimpliDerm human acellular dermal matrix business to Cellution Biologics for total consideration of up to $11 million. Elutia will receive $8 million in cash at closing, along with up to $3 million in technology transfer and commercial milestone payments over the next 18 months. The deal is expected to close in the second half of 2026, subject to customary closing conditions. The divestiture aligns with Elutia's strategy to focus resources on NXT-41x, its antibiotic-eluting biomatrix in development for the $1.5 billion U.S. plastic and reconstructive surgery market. Proceeds further strengthen Elutia's balance sheet without equity dilution and provide additional capital to support a planned commercial launch in 2027. Elutia stock closed Thursday at $0.95, down 1.03%, and fell a further 3.52% in pre-market trading to $0.91.