Healthcare Industry News: Merit Medical Systems
News Release - November 5, 2007
Micrus Endovascular to Divest $3 Million in Non-Core Cardiac and Peripheral Assets to Merit Medical SystemsSAN JOSE, Calif.--(HSMN NewsFeed)--Micrus Endovascular Corporation (Nasdaq:MEND ) today announced that it has entered into a non-binding term sheet to sell certain cardiac and peripheral catheter platform assets and technology for $3 million to Merit Medical Systems, Inc. (Nasdaq:MMSI ), a leading manufacturer and marketer of proprietary disposable devices used primarily in cardiology and radiology procedures. The purchase will include the transfer from Micrus to Merit of manufacturing know-how, intellectual property, inventory and technology.
Under terms of the agreement, Micrus will receive an initial payment of $1.5 million and an additional $1.5 million upon the transfer of the assets and technology to Merit, no later than the one-year anniversary of the closing. The agreement is subject to customary closing conditions and is expected to close prior to the end of calendar year 2007. The assets for sale were originally acquired by Micrus in November 2006 with the purchase of Vascon, LLC.
“With the original acquisition of Vascon, we expanded our access system and catheter core competencies and gained essential technology for developing our ENZO™ steerable microcatheter, the first steerable catheter available to the neurointerventional market. This divestiture allows us to realize the value of the non-core cardiac and peripheral assets we gained from Vascon, while we continue to grow our business and create long-term growth opportunity through our focus on the treatment of hemorrhagic and ischemic stroke,” said John Kilcoyne, Micrus Chairman and CEO. “Merit is a leader in the cardiac and peripheral treatment field and we are confident this technology will prove beneficial as we share a common goal to deliver products that offer clinical advantage based on innovative technologies.”
Founded in 1987, Merit Medical Systems, Inc. is engaged in the development, manufacture and distribution of proprietary disposable medical devices used in interventional and diagnostic procedures, particularly in cardiology and radiology. Merit serves client hospitals worldwide with a domestic and international sales force totaling approximately 90 individuals. Merit employs approximately 1,520 people worldwide, with facilities in Salt Lake City and South Jordan, Utah; Santa Clara, California; Angleton, Texas; Richmond, Virginia; Maastricht and Venlo, The Netherlands; and Galway, Ireland.
About Micrus Endovascular Corporation
Micrus develops, manufactures and markets both implantable and disposable medical devices used in the treatment of neurovascular diseases. Micrus products are used by interventional neuroradiologists and neurosurgeons primarily to treat cerebral aneurysms responsible for hemorrhagic stroke, a significant cause of death worldwide. The Micrus product line enables physicians to gain access to the brain in a minimally invasive manner through the vessels of the circulatory system. Micrus’ proprietary, three-dimensional microcoils are unique in that they automatically deploy within the aneurysm, forming a scaffold that conforms to a wide diversity of aneurysm shapes and sizes. Micrus also sells accessory devices and products used in neurovascular procedures. For more information, visit www.micruscorp.com.
Micrus, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are predictions by the Company’s management and are subject to various risks and uncertainties that may cause results to differ from management’s current expectations. Such factors include the Company’s dependence upon the continued growth in embolic coiling as a procedure to treat cerebral aneurysms, the Company’s involvement in patent litigation with Boston Scientific Corporation, the Company’s limited operating history and history of significant operating losses, fluctuations in quarterly operating results, which are difficult to predict, the Company’s dependence on developing new products or product enhancements, challenges associated with complying with applicable state, federal and international regulations related to sales of medical devices and governing our relationships with physicians and other consultants, the Company's ability to obtain regulatory approvals for its products, product enhancements or future products in a timely manner, the Company’s ability to compete with large, well-established medical device manufacturers with significant resources and other risks as detailed from time to time in risk factors and other disclosures in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2007, and other filings with the Securities and Exchange Commission. All forward-looking statements in this release represent the Company’s judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update forward-looking statements.
Source: Micrus Endovascular
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