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CryoLife Reports Financial Results for the Third Quarter and First Nine Months of 2011
Date:10/27/2011

HemoStase inventory that the Company did not believe it would be able to distribute.  

General, administrative, and marketing expenses for the third quarter of 2011 were $14.7 million compared to $11.4 million for the third quarter of 2010.  General, administrative, and marketing expenses for the third quarter of 2011 included approximately $1.1 million in costs related to the Company's business development activities, including the acquisition of Cardiogenesis.  

General, administrative, and marketing expenses for the first nine months of 2011 were $42.7 million compared to $36.9 million for the first nine months of 2010.  General, administrative, and marketing expenses for the first nine months of 2011 included approximately $4.1 million in costs related to the Company's acquisition of Cardiogenesis and other business development activities.  General, administrative, and marketing expenses for the first nine months of 2010 included approximately $542,000 in costs related to business development activities.

Research and development expenses were $1.7 million and $1.6 million for the third quarters of 2011 and 2010, respectively.  Research and development expenses were $5.1 million and $4.1 million for the first nine months of 2011 and 2010, respectively.  Research and development spending in 2011 was primarily focused on PerClot, SynerGraft® tissues and products, BioFoam® Surgical Matrix, and BioGlue.  

Acquired in-process research and development expense of $3.5 million in the third quarter of 2010 was related to an intangible asset for PerClot distribution and manufacturing rights in the U.S. and certain other countries in which PerClot does not have current regulatory approvals.  Therefore the cost allocated to the asset was expensed upon acquisition.

Other expense was $207,000 for the third quarter of 2011 compared to $3.3 million for the third quarter of 2010.  Other
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SOURCE CryoLife, Inc.
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