Elutia Inc. (Nasdaq: ELUT) has signed a definitive agreement to sell its SimpliDerm human acellular dermal matrix business to Cellution Biologics Inc. for total consideration of up to $11 million, according to a company press release.

Under the terms of the deal, Elutia will receive $8 million in cash at closing, with up to an additional $3 million in technology transfer and commercial milestone payments over the following 18 months. Closing is expected in the second half of 2026, subject to customary conditions.

The company said proceeds will be used to advance its NXT-41x antibiotic-eluting biomatrix product, which is targeted at the plastic and reconstructive surgery market. Elutia said the capital will support a planned commercial launch of NXT-41x in 2027, pending regulatory clearance.

"This transaction is another decisive step in fortifying Elutia's balance sheet with non-dilutive capital and sharpening our focus on NXT-41x," said Dr. Randy Mills, Chief Executive Officer of Elutia.

Elutia describes NXT-41x as being developed for the approximately $1.5 billion U.S. plastic and reconstructive surgery market. The company is based in Gaithersburg, Md.