Elutia Inc. sees $1.05 million stock purchase by HighCape entities

In a recent filing with the Securities and Exchange Commission, Elutia Inc. (NASDAQ:ELUT) disclosed that HighCape Capital, L.P., along with several affiliated entities, purchased a total of 420,000 shares of Class A Common Stock. The transaction was executed on February 3, 2025, at a price of $2.50 per share, amounting to a total value of $1.05 million. The stock has since rallied to $3.25, marking a notable 22% gain over the past week, according to InvestingPro data.

The shares acquired are held indirectly through various HighCape entities, which include HighCape Partners, L.P., HighCape Partners QP, L.P., HighCape Co-Investment Vehicle I, LLC, and other related entities. Kevin Rakin and W. Matthew Zuga, members of Elutia’s board of directors, are the managing members of HighCape Partners GP, LLC, which oversees these entities. InvestingPro analysis indicates the company operates with moderate debt levels, though its current ratio of 0.69 suggests some liquidity challenges.

This acquisition adds to the shares already held by the HighCape group, bringing their total ownership to over 9.5 million shares in Elutia Inc. The transaction was reported in two separate Form 4 filings due to the number of insiders involved. Notably, analysts maintain a strong buy consensus with price targets ranging from $8 to $10, as revealed in the comprehensive research available through InvestingPro’s detailed company analysis.

In other recent news, Aziyo Biologics reported a 7% year-over-year revenue decline for the fourth quarter of 2024, totaling $5.5 million, which aligned with the FactSet consensus but fell short of Cantor Fitzgerald’s projection of $6.3 million. The decline was primarily due to a 23% decrease in SimpliDerm sales, while BioEnvelope products saw an 18% increase, largely driven by strong initial sales of EluPro. Cantor Fitzgerald maintained an Overweight rating on Aziyo Biologics with an $8.00 price target, expressing optimism for 2025 due to the successful pilot launch and anticipated sales growth from partnerships, notably with Boston Scientific (NYSE:BSX). Elutia Inc., another company, reported a fourth-quarter revenue of $5.47 million, missing the expected $6.3 million and resulting in a stock drop. Despite this, Elutia highlighted positive developments such as the launch of EleuPro and a strategic partnership with Boston Scientific, which are expected to drive future growth. The company also reported a gross margin increase to 43% from 36% the previous year. Cantor Fitzgerald’s analysis suggests that Elutia’s EluPro product could potentially capture market share from competitors like Medtronic (NYSE:MDT), which currently generates significant revenue from a similar product.

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