CryoLife to cash in on Bard buyout of Medafor

October 8, 2013 by Brad Perriello

CryoLife says it's in line for a $15 million payout due to its stake in Medafor, which C.R. Bard bought last week for some $280 million.

CryoLife to cash in on Bard buyout of Medafor

CryoLife Inc. (NYSE:CRY) said it's in line for a $15.1 million payout from the C.R. Bard (NYSE:BCR) acquisition of Minnesota-based Medafor for up to $280 million.

CryoLife said it owns nearly 2.4 million shares of Medafor stock, which cost it about $2.6 million, and could be due another $8.4 million "upon the release of funds held in escrow and the satisfaction of certain contingent milestones."

The deal for Medafor, which closed last week, calls for an up-front cash payment of $200 million for hemostat maker Medafor, plus another possible $80 million in milestones.

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The companies announced the deal in August, with Bard saying it planned to use the merger to expand its Davol subsidiary's reach into the operating suite.

"Medafor has a robust pipeline of potential future products that we expect will expand the use of this clinically proven and effective hemostat to control bleeding," the company said at the time, adding that it expected to add about 1% to its revenue growth forecast for 2014.

BCR shares were up 0.8% today, trading at $115.79 as of about 1:45 p.m.