Merit Medical Completes $210 Million Acquisition of Cook Medical's Lead Management Portfolio
Cook Medical
Medical Device Developer
Merit Medical
Disposable Medical Device Manufacturer
Pioneer in Medical Device Media Coverage
Sharing Professional Medical Device Knowledge
November 1, 2024,Merit Medical Systems, Inc. (NASDAQ: MMSI), a top-100 global medical device company, announced that it has completed the acquisition of Cook Medical’s guidewire management product portfolio.
Merit Medical Announced in September This Year That It Agreed to Acquire Cook Medical’s Wire Management Product Portfolio for $210 Million (Approximately RMB 1.5 Billion). Merit Medical Funded the Acquisition Through a Combination of Cash on Hand and Borrowings Under Its Long-Term Credit Facility.
Cook Medical is a medical device company from Indiana, USA, founded in 1963. Currently, Cook Medical's business spans across 135 countries and regions worldwide, with products mainly including vascular interventional and surgical products, covering areas such as intensive care, endoscopy, otolaryngology/head and neck surgery, reproductive health, general surgery, urology, and more. Production bases are primarily located in the United States, Europe, and Australia. The company has six major logistics distribution centers and multiple local warehousing and delivery centers globally, along with over 10,000 employees. In recent years, Cook Medical’s global leadership team has implemented a new five-year vision and strategic plan.To execute its “Five-Year Vision and Strategic Plan,” Cook Medical has undertaken several significant initiatives in recent years, including divesting business units and implementing layoffs.
Cook Medical’s lead management business provides medical devices and accessories for lead management procedures. These procedures are indicated for patients requiring the removal or replacement of pacemaker or implantable cardioverter-defibrillator (ICD) leads. In addition to this product portfolio, Merit Medical’s own electrophysiology and cardiac rhythm management (CRM) portfolio includes steerable technology and other specialized technologies that assist electrophysiologists in accessing the heart for diagnostic purposes and implanting devices to treat cardiac arrhythmias.
Merit Medical anticipates that the acquisition will generate $4 million to $6 million in revenue for the Company from the present date through December 31, 2024. During this period, the Company expects dilution in its Non-GAAP operating margin, net income, and earnings per share.The business generated approximately $37 million in revenue during the 12-month period ended December 31, 2023.
“We are pleased to announce the completion of this significant acquisition,” said Fred P. Lampropoulos, Chairman and Chief Executive Officer of Merit Medical Systems, Inc. “We warmly welcome the Cook Medical wire management business team. We believe this acquisition will strengthen our rapidly growing, high-margin electrophysiology and cardiac rhythm management businesses and enhance our position in the global cardiac intervention market.”
In this transaction, Wells Fargo served as the financial advisor to Merit Medical Systems, Inc., while Bank of America Securities served as the financial advisor to Cook Medical. Parr Brown Gee & Loveless LLP acted as legal counsel to Merit Medical Systems, Inc., and Ice Miller LLP acted as legal counsel to Cook Medical.
Merit Medical was founded in 1987 and is engaged in the development, manufacturing, and distribution of proprietary single-use medical devices for interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. Merit serves customer hospitals worldwide, with a domestic and international sales and clinical support team totaling more than 700 people, and has approximately 7,000 employees globally.
It is worth noting that,Merit has become a global leader in the fields of interventional radiology and cardiology treatment. After more than thirty years of continuous development and innovation, the company has repeatedly been listed among the "Top 100 Global Medical Device Companies."
In June this year, Merit Medical also reached a cooperation agreement with Medtronic to provide it with a single steerable balloon catheter—Kyphon KyphoFlex—for the treatment of minimally invasive vertebral compression fractures (VCF).
It is understood that the Kyphon KyphoFlex is a steerable, flexible catheter used to treat pathological vertebral fractures caused by osteoporosis, cancer, or benign lesions.
Under the agreement between the two parties, Medtronic will assume full responsibility for the sales, marketing, and distribution of the product, while Rematon will be responsible for the manufacturing of the catheter, including quality and safety control, regulatory affairs, and lifecycle management. This collaboration further deepens the existing partnership between the two companies. Previously, Rematon had supplied Medtronic with Kyphon Xpander inflation devices for use in balloon kyphoplasty.
It is reported that Balloon Kyphoplasty (BKP) is a percutaneous treatment for tumor-related vertebral compression fractures. The procedure aims to restore vertebral height using an orthopedic balloon and correct vertebral compression fractures caused by osteoporosis, cancer, or benign lesions.
This procedure involves introducing a small balloon into the vertebral body via a cannula and inflating it to elevate the collapsed vertebra. Subsequently, the balloon is deflated and removed, and the resulting cavity is controllably filled with bone cement to help form an internal scaffold, thereby stabilizing the fracture.
Merit Medical’s Kyphon KyphoFlex catheter enables the creation of precise and controlled target cavities during vertebral augmentation procedures. Its curved design allows for more flexible trajectory adjustments within the vertebral body, facilitating optimal target positioning and complementing Medtronic’s existing bilateral balloon kyphoplasty product portfolio.
Driven by the strong performance of these collaborations and products, Merit Medical reported a robust third-quarter financial result.Revenue increased by 7.8% in the third quarter of 2024 compared to the third quarter of 2023.As of September 30, the company reported revenue of $339.8 million, compared to $315.2 million in 2023. Net income was $28.4 million, compared to $25.8 million in the prior year.
The company reported a 5.5% growth in its cardiovascular segment, increasing from $306 million in 2023 to $322.8 million this year. Revenue from its peripheral intervention segment grew by 7.4% ($137.9 million compared to $128.3 million in 2023); the cardiac interventional business increased by 1.9% ($90.7 million versus $89.1 million); its custom procedure solutions rose by 4.4% ($50.7 million compared to $48.6 million); and its OEM products segment grew by 8.5% ($43.3 million versus $39.9 million).
Currently, the interventional cardiology and peripheral vascular device market is demonstrating robust growth. According to professional forecasts, this market is poised for significant expansion in the coming years, with its size expected to reach an impressive $41.9003 billion by 2030. This projection indicates that the compound annual growth rate (CAGR) of the market will remain steadily at a high level of 8.5% from 2021 to 2030.
In this context, Merit Medical, a leader in specialized medical devices for interventional, diagnostic, and therapeutic procedures, holds a leading position across multiple fields, including cardiology, radiology, oncology, critical care, and endoscopy. The acquisition of certain businesses from Cook Medical will significantly strengthen Merit Medical’s strategic presence in the electrophysiology and rhythm management sectors.
Following this acquisition, Merit Medical’s future moves are drawing significant attention from the industry. Will the company seize this opportunity to further expand its market share, or launch more innovative products to drive new growth for the sector? MedDevice Home will continue to provide ongoing coverage to reveal the answers.
More Exciting Content
Welcome to follow our WeChat Video Account
A-Share Medical Device Leader Dumps This Business for 634 Million Yuan
CIIE Preview: “Black Tech” in Surgical Instruments
Zhangjiang Group Increases Capital in This Ultrasound Research Institute
Stock Price Falls 16%, Philips CEO: China Will Return
CIIE Preview: “Black Tech” in Medical Imaging
Midea Participates in Investment; One Domestic Surgical Robot Company Deregistered
Top 100 Medical Device Companies Construct New Headquarters
650,000 Products Recalled: Leading Orthopedic Company Declares Bankruptcy
Philips: Layoffs, Transfer of This Business
Medtronic Officially Announces Chief Medical Officer from Cleveland Clinic
ShangBusiness Cooperation Email: qxzj@landianyiliao.com
