Medafor, which is profitable, has been growing sales at an annual compound rate of 75% per year since 2005. Medafor is a private company and does not disclose its financial performance, but suffice it to say that 99% of its shareholders (all of whom receive copies of the company’s financial records) have opted to keep their shares away from CryoLife. Going forward, Medafor has announced that it is planning to launch different versions of its flagship MPH product into the OB-GYN, orthopedic and urology markets—none of which are served by CryoLife. CryoLife’s Financial Performance This week CryoLife announced that sales (excluding Medafor’s MPH—which is sold as Hemostase by CryoLife) rose 2.1%. Sales of Medafor’s MPH product through CryoLife rose 292% to $6 million and tripled CryoLife’s overall growth rate from 2.1% to 6.3%. CryoLife’s largest business—BioGlue—declined in 2009. BioGlue’s unit sales fell 2% and revenues before the effect of currency changes fell 4%. CryoLife’s profit margins continue to come under pressure (gross profit margin fell by 204 basis points to 62% of sales). The good news is that CryoLife generated strong cash flow in 2009—to approximately $16.6 million. That, in turn, left the company with almost $30 million in cash on its books. Cash, presumably, that CryoLife is offering to Medafor shareholders.