HighCape Capital buys $1.05 million in Elutia Inc. stock

In a recent transaction, HighCape Capital, L.P. has acquired a significant amount of Elutia Inc. (NASDAQ:ELUT) stock. According to a filing with the Securities and Exchange Commission, HighCape purchased 420,000 shares of Elutia’s Class A Common Stock at a price of $2.50 per share, totaling $1.05 million. This acquisition increases HighCape’s total holdings to 9,520,232 shares. The stock, currently trading at $3.25, has shown strong momentum with a 22% gain over the past week, according to InvestingPro data.

HighCape Capital, a notable investor in the life sciences sector, has been actively involved with Elutia, formerly known as Aziyo Biologics, Inc. The transaction was executed on February 3, 2025, and was reported by multiple entities associated with HighCape, including HighCape Co-Investment Vehicle II, LLC. With a market capitalization of $128 million, Elutia has garnered strong analyst interest, with consensus price targets ranging from $8 to $10 per share.

The purchase underscores HighCape’s continued interest in Elutia, a company engaged in the development of biological products. The acquisition reflects HighCape’s strategic investment approach and its confidence in Elutia’s potential growth and development in the biotech industry. InvestingPro analysis reveals the company maintains a moderate debt level but faces cash burn challenges. Get access to 6 additional ProTips and comprehensive financial analysis with an InvestingPro subscription.

In other recent news, Aziyo Biologics reported a year-over-year revenue decline of approximately 7% for the fourth quarter of 2024, with revenue totaling $5.5 million. This figure met the FactSet consensus but fell short of Cantor Fitzgerald’s projection of $6.3 million. The decline was largely due to a 23% drop in SimpliDerm sales, which amounted to $2.3 million, although BioEnvelope products saw an 18% increase in sales to $2.7 million. Despite the mixed results, Cantor Fitzgerald maintained an Overweight rating on Aziyo Biologics, with a price target of $8.00, expressing optimism for the company’s prospects in 2025. The firm highlighted the successful pilot launch of EluPro and its potential impact on future growth, with Boston Scientific (NYSE:BSX)’s involvement expected to drive sales. Additionally, Cantor Fitzgerald noted that Medtronic (NYSE:MDT), a competitor in the envelope market, generates about $200 million annually with a product they consider inferior, suggesting significant potential for Aziyo’s revenue. The strategic partnership with Boston Scientific and the launch of EluPro are seen as key factors in Aziyo’s growth strategy moving forward.

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