Under the headline "Medafor Shareholders Crush Cryolife" a new article, states ....." Medafor has decided to end its distribution relationship with CryoLife. Over the past 24 months Medafor has supplied CryoLife with its flagship product—a patented absorbable hemostasis powder which promotes rapid clotting. According to CryoLife CEO Anderson, losing the rights to distribute Medafor’s innovative hemostat will cost the company as much as $6 million in lost annual revenues.
It is probably worth noting that in 2009 CryoLife reported a precipitous decline in reported after-tax earnings from $32.9 million (2008) to $8.6 million (2009). CryoLife’s COO stated that losing the Medafor product would materially adversely affect CryoLife.
In retrospect, one has to ask the question: What were the guys at CryoLife thinking? Not only is roughly $6 million flushed away but now they will lose one of the strongest product lines."
The full article is available HERE