CryoLife Inc. (NYSE:CRY) said Monday that it is transitioning to direct sales in France, effective October 1.
Last year, the Atlanta, Ga-based company said it made approximately $3 million in revenue from sales to its French distributor.
“We are working closely with our distributor to ensure a smooth transition as we end the distribution agreement and integrate some of their reps into our team. Transitioning to a direct sales model in international markets is a key strategic initiative for the Company, as it enhances our revenue and gross margin mix, allows us to implement a more focused sales and marketing strategy, and provides a platform for future new product introductions,” CEO Pat Mackin said in a prepared statement.
CryoLife has concluded its agreement with its French distributor, the company said, and will hire select members of the distributor’s sales team who have sold the company’s products.
“The addition of experienced reps from our distributor’s sales team provides CryoLife with a direct and established footprint with strong relationships with surgeon customers in France. We expect this will provide a benefit to 2016 revenue and gross margin, and longer-term, provide a direct channel for our growing portfolio of products in an important European market,” Mackin said in a press release.
In April, the FDA closed out a warning letter from 2013 about problems at a CryoLife plant in Kennesaw, Ga., after follow-up inspections last month found the issues corrected and no further violations.