Elutia Inc. (Nasdaq: ELUT) has secured up to $26 million in capital to fund its antibiotic-eluting biomatrix product NXT-41x through FDA clearance and commercial launch, without issuing new equity, according to a company press release.

The financing consists of a $15 million credit facility from Avenue Capital Group — with $10 million funded at closing and an additional $5 million available following NXT-41x FDA clearance — plus up to $11 million from the planned sale of its SimpliDerm business, including $8 million in cash at closing and up to $3 million in contingent milestone payments. Elutia also expects to receive $8 million held in escrow from the 2025 divestiture of its BioEnvelope business, with release expected in the fourth quarter of 2026.

The company expects FDA clearance for NXT-41, a biologic surgical matrix without drug, in the fourth quarter of 2026, and for NXT-41x in the first half of 2027. A commercial soft launch of NXT-41x is planned for the second half of 2027, with a full launch targeted for 2028.

An independent blinded survey of 50 board-certified plastic and reconstructive surgeons across 28 states found that 96% expressed interest in incorporating NXT-41x into their practice, and 92% said they would support it at their hospital's value analysis committee. The surgeons averaged 11.6 years in practice and performed approximately 140 complex reconstructive procedures annually.

For the second quarter ended June 30, 2026, net sales from continuing operations were $2.4 million, down from $2.7 million in the same period of 2025. GAAP gross margin improved to 59.6% from 52.9%. The net loss was $7.6 million, compared with $9.6 million a year earlier. Adjusted EBITDA was a loss of $4.6 million, versus a loss of $3.0 million in the prior-year period. Cash and cash equivalents stood at $19.9 million as of June 30, 2026.

Elutia also signed a definitive agreement on July 16, 2026 to sell its SimpliDerm business for up to $11 million, with closing expected in the third quarter of 2026. A strategic process for its Cardiovascular business is also ongoing.