CryoLife (CRY) has recently reported that its BioGlue surgical adhesive had been used in over 500,000 surgical procedures worldwide. BioGlue is a two-component surgical adhesive, which creates a flexible, mechanical seal – independent of the body’s clotting mechanism. Surgeons throughout the world use BioGlue during complex cardiovascular surgeries due to its highly effective sealing properties.
BioGlue was launched in the international market in 1998 and later in the United States in 2001. BioGlue accounted for 46% of CryoLife’s total revenues ($105 million) in 2008.

CryoLife estimates its total revenues to be in the range of $113-$119 million in this year – out of which BioGlue is expected to contribute nearly $50-$52 million. The company expects its EPS to be lower in 2009 compared to the previous year due to high effective tax rate of around 41%.
CryoLife will report its 2009 second quarter financial results on July 30, 2009. Shares of CryoLife closed at $5.15 on Friday, trading at 4.56X, trailing 12-month EPS. We maintain our Hold recommendation for the company.

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