Georgia-based CryoLife, has called an allegation that it has repudiated the exclusive distribution with Medafor "not valid" in an ongoing letter-writing war over a distribution agreement for HemoStase.
CryoLife made this announcement after Medafor accused the company of not properly performing its obligations under the HemoStase distribution agreement and would seek damages from CryoLife. Medafor earlier this year spurned CryoLife's offer to buy the company for $2 a share, or $40 million. CryoLife is Medafor's largest shareholder, holding about an 11 percent stake in the company, the Minneapolis Star Tribune reports.
Under the agreement, CryoLife had the exclusive right to sell HemoStase to cardiac and vascular surgeries in the United States--excluding Department of Defense facilities--and to cardiac, vascular and general surgeries in the rest of the world--except China and Japan. Medafor says that Cryolife had repeatedly breached the contract in several countries, including the U.S.
Furthermore, "CryoLife has also continued to insist that it is entitled to distribute HemoStase in China and Japan, despite the clear terms of the [agreement] to the contrary. Gary Shope, CEO of Medafor, says in a statement.
Medafor also is seeking a judgment in state court in Ramsey County to bar CryoLife from having access to Medafor's corporate records, MSN notes.
CryoLife sued Medafor last year in Georgia for breach of contract and fraud negligent misrepresentation, as well as violations of Georgia Racketeer Influenced and Corrupt Organizations Act. It alleged Medafor has violated the company's agreement by allowing other companies to distribute HemoStase in territories and medical fields reserved exclusively for CryoLife.
- see CryoLife's release
- check out Medafor's release
- see the Minneapolis Star Tribune coverage
- read MSN's report