Elutia Inc. (Nasdaq: ELUT) has entered into a $15 million growth capital financing agreement with Avenue Capital Group to fund the development and commercialization of its NXT-41x antibiotic-eluting biomatrix product, according to a press release.

The deal is structured in two tranches: $10 million was funded at closing, with an additional $5 million available upon FDA 510(k) clearance of NXT-41x. The company said FDA clearance is anticipated in the first half of 2027.

NXT-41x is designed for use in plastic and reconstructive surgeries, targeting post-operative infection rates that the company says can reach 15–20% in certain complex procedures. Elutia described the addressable U.S. market as approximately $1.5 billion.

Elutia Chief Financial Officer Matt Ferguson said the financing was structured to avoid diluting shareholders. "The $10 million we closed on this week significantly extends our runway, and the facility is expected to provide access to an additional $5 million exactly when it will be most useful — powering a strong NXT-41x launch," Ferguson said.

Chad Norman, Senior Portfolio Manager at Avenue Capital, cited the product's potential in breast reconstruction following cancer treatment as a key factor in the firm's decision to participate. "We conducted a robust diligence process and were struck by the potential of NXT-41x to redefine soft tissue reinforcement for women needing reconstruction after breast cancer," Norman said.

Elutia is headquartered in Gaithersburg, Maryland, and develops drug-eluting biomatrix products intended to improve compatibility between medical devices and patients.