Elutia Inc. (Nasdaq: ELUT) has completed the sale of its SimpliDerm human acellular dermal matrix business to Cellution Biologics Inc. for total consideration of up to $11 million, according to a company statement.

The deal includes $8 million paid at closing, subject to adjustments for inventory levels and transaction expenses, plus up to $3 million in contingent milestone payments over the next 18 months.

Elutia said the proceeds represent non-dilutive capital that, combined with previously announced funding sources, the company believes is sufficient to support operations through the first full year of commercial launch of its NXT-41x product in 2028.

NXT-41x is an antibiotic-eluting biomatrix under development for use in plastic and reconstructive surgery, where post-operative infection rates can range from 15% to 20%. The product is designed to provide soft-tissue reinforcement while delivering antibiotics locally to inhibit bacterial colonization at the surgical site. Elutia plans to target the approximately $1.5 billion U.S. plastic and reconstructive surgery market initially, with planned expansion into general and oncologic surgeries.

The company expects to receive FDA clearance for NXT-41x in the first half of 2027.

"Completing this divestiture reflects the discipline and commitment the Elutia team brings to everything we do," said Dr. Sonali Fonseca, Vice President of Emerging Business, who led the divestiture effort.