Healthcare Industry News: Merit Medical Systems
News Release - November 5, 2007
Merit Medical to Acquire Cardiac and Peripheral Assets From Micrus EndovascularSOUTH JORDAN, Utah, Nov. 5, 2007 (Healthcare Sales & Marketing Network) -- Merit Medical Systems, Inc. (NasdaqGS:MMSI ), a leading manufacturer and marketer of proprietary disposable devices used primarily in cardiology and radiology procedures, announced today that it entered into a non-binding term sheet with Micrus Endovascular Corporation (NasdaqGM:MEND ) to purchase certain cardiac and peripheral catheter platform assets and technology from Micrus for $3 million.
The purchase will include the transfer of know how, intellectual property, inventory and technology from Micrus to Merit.
``Catheters have been the fastest growing segment of our business for several years,'' said Fred P. Lampropoulos, Merit's Chairman and CEO. ``We are optimistic that these new technology platforms will accelerate Merit's development and new product introductions. Combined with other Merit products and capabilities, we believe current and future Merit catheters offer a compelling choice for our customers.''
``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 1,525 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
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 http://www.micruscorp.com.
Statements contained in this release, which are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 and are subject to risks and uncertainties such as those described in Merit's Annual Report on Form 10-K for the year ended December 31, 2006. Such risks and uncertainties include product recalls and product liability claims; infringement of Merit's technology or the assertion that Merit's technology infringes the rights of other parties; termination of relationship with suppliers, or failure of suppliers to perform; inability to successfully manage growth through acquisitions; delays in obtaining regulatory approvals, or the failure to maintain such approvals; concentration of Merit's revenues among a few products and procedures; development of new products and technology that could render Merit's products obsolete, market acceptance of new products, introduction of products in a timely fashion, price and product competition, availability of labor and materials, cost increases, and fluctuations in and obsolescence of inventory; volatility of the market price of Merit's common stock; foreign currency fluctuations; key personnel; work stoppage or transportation risks; modification or limitation of governmental or private insurance reimbursement, changes in health care markets related to health care reform initiatives; and other factors referred to in Merit's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. All subsequent forward-looking statements attributable to Merit or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Actual results may differ materially from anticipated results. Financial estimates are subject to change and are not intended to be relied upon as predictions of future operating results, and Merit assumes no obligation to update or disclose revisions to those estimates.
Source: Merit Medical Systems
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