Merit Medical Acquires Cook Medical's Vascular Intervention Business for $210 Million

Sep 19, 2024 17:03 CST Updated 17:04

Cook Medical

Medical Device Developer

Recently, Merit Medical Systems (NASDAQ: MMSI) announced that it will acquire Cook Medical’s vascular interventional products business for $210 million (approximately RMB 1.5 billion), with the transaction expected to be completed in the fourth quarter of this year.

The vascular interventional products acquired in this transaction can be used to remove or replace leads for pacemakers or implantable cardioverter-defibrillators (ICDs) during surgical procedures.

Cook Medical is a U.S.-based medical device company founded in 1963. Its current business operations span 135 countries and regions worldwide, with products covering more than 60 medical specialties. The company’s manufacturing facilities are primarily located in the United States, Europe, and Australia. It operates six major logistics distribution centers and multiple local warehousing and distribution hubs, and employs approximately 10,000 people.

Merit Medical stated that this product generated $37 million in revenue in 2023. Following its acquisition by Merit, the company forecasts that in the fourth quarter of 2024,This product line will add $4 million to $6 million in revenue for it.The Chairman and CEO stated that this transaction will strengthen the company’s capabilities in electrophysiology and cardiac rhythm management. We look forward to discussing this acquisition and providing updated outlook for 2024 in our third-quarter financial report on October 30, 2024.

Merit Medical: A Leader in the Field of Cardiac Intervention

Merit Medical Systems, founded in 1987 and headquartered in the United States, holds a significant position in the production and sales of medical devices for cardiovascular, peripheral vascular, radiology, and oncology applications.

Currently, Merit Medical bundles its product offerings into six core categories for combined sales: Peripheral Intervention Products, Cardiac Intervention Products, Cardiovascular and Critical Care Products, Interventional Oncology and Spine Products, Breast Cancer Localization and Guidance Products, and Endoscopy.

Merit Medical has been repeatedly included in the “Global Top 100 Medical Device Companies”Ranked ninth in the 2023 global ranking of cardiovascular interventional companies, Merit Medical has become a global leader in the fields of interventional radiology and cardiology treatment.

Source: Medheart

According to the latest financial report, Merit Medical’s cumulative revenue for the first six months of fiscal year 2024 reached US$662 million, a year-on-year increase of 7.11%; cumulative net profit amounted to US$63.966 million, representing a year-on-year growth of 56.21%.

Continuous Acquisitions to Expand Market Influence

In terms of the company's business development, Merit Medical continues to acquire and strengthen its business in the field of cardiovascular intervention.

In June 2023, Merit Medical announced a $132 million investment (approximately RMB 940 million) to expand its presence in the hemodialysis market. The plan includes two separate transactions,The acquisitions of the product lines of Bluegrass Vascular Technologies and AngioDynamics were completed at prices of $32.5 million and $100 million, respectively.

The product lines involved in this transaction are extensive, including the DuraFlow™, DuraMax®, Evenmore®, Schon XL®, Trio-CT®, and Vaxel Plus hemodialysis catheter brands, as well as the BioSentry™ catheter securement system and biopsy brands. This portfolio contributed approximately $32 million (approximately RMB 230 million) to AngioDynamics’ fiscal year 2023 revenue.Sales.

In July 2024, Merit Medical Systems announced a partnership with Medtronic to provide a unilaterally steerable balloon catheter in the United States for the treatment of vertebral compression fractures (VCF). As part of the agreement, Medtronic will be responsible for all sales, marketing, and distribution of the Kyphon KyphoFlex Unilateral Balloon Catheter. Merit Medical Systems will oversee other aspects of catheter manufacturing, including quality and safety control, regulatory activities, and lifecycle management.

Accelerated Market Transformation: Significant Potential for Domestic Substitution

Globally, population aging is becoming a widespread issue. It is projected that by 2030, individuals aged 65 and older will account for nearly 11% of the world’s total population.

The global market size for cardiovascular interventional devices currently stands at $48.3 billion. In the coming years, with the continuous increase in the number of patients suffering from coronary heart disease, heart failure, valvular heart disease, congenital heart disease, and cardiomyopathy,The global market size for cardiovascular medical devices is projected to reach $82.2 billion in 2026, with a compound annual growth rate (CAGR) of approximately 6.9% during the forecast period.

From 2016 to 2020, the number of patients with cardiovascular disease in China increased at a compound annual growth rate (CAGR) of 2.78%, rising from 227,000 to 253,000, and reaching approximately 267,000 in 2022.

In 2021, the market size of China's cardiovascular interventional devices reached RMB 37.204 billion. It is estimated that by 2025, the market will reach RMB 25–30 billion, with an annual growth rate of 7%–9%. By 2030, the market size is projected to reach RMB 140.179 billion, representing a compound annual growth rate (CAGR) of 15.88% from 2021 to 2030.

Current Status and Forecast Analysis of the Market Size of Cardiovascular Interventional Devices in China, 2017–2030

Source: CICC Enterprise Information International Consulting

Cardiovascular interventional therapy is a relatively new and highly complex procedure that requires practitioners to possess specialized knowledge and training experience. Only by advancing product research and development, enhancing product quality, expanding application areas, improving service levels, achieving scalability, and boosting competitiveness can we achieve sustainable and healthy development, thereby elevating China’s cardiovascular interventional medical devices to new heights.

▲Source:Medical Device Innovation Network

▲Reproduction without authorization is prohibited.May be republished only after 24 hours.！

Disclaimer: This article is for informational purposes only and should be used for reference only. It does not constitute any advice on investment or treatment; please exercise due diligence in evaluation. For any issues related to the content, copyright, or other matters, and to safeguard the rights and interests of all parties, please contact us, and we will address the matter promptly. Any platform republishing this article shall bear sole responsibility for it; Medical Device Innovation Network assumes no liability for secondary dissemination arising from such republication.

P/r/e/v/i/o/u/s/ /I/s/s/u/e/s/ /R/e/c/a/p

A Showdown in R&D Investment Among Top Medical Device Companies at Home and Abroad: Johnson & Johnson, Medtronic, Mindray... Who Comes Out on Top?

Over 14,000 Layoffs in Half a Year: Has the Medical Device Sector Emerged from the “Winter”?

$14.6 Billion in Revenue, 341 Units Installed! Da Vinci Stuns Wall Street in Q2