Merit Medical Acquires Brightwater Medical for $35 Million to Expand Interventional Radiology Portfolio

VCBeat (WeChat ID: vcbeat) has learned from foreign media that on June 18, U.S. local time, renowned healthcare company Merit Medical announced the acquisition of medical device company BrightWater Medical for $35 million. BrightWater Medical’s flagship ConvertX product series will also be added to Merit Medical’s portfolio, including vascular products such as the Resolvive drainage catheter, InQwire guidewire, and Advocate PTA balloons.

BrightWater Medical, founded in 2011, is a medical device company dedicated to developing medical devices for interventional radiologists. Headquartered in Mountain View, California, USA, the company focuses on treatments for ureteral obstruction. Its ConvertX Nephroureteral Stent System received FDA approval in March this year for the treatment of ureteral obstruction.

ConvertX Nephroureteral is the first percutaneous plastic biliary stent system designed for radiologists, serving as a less invasive alternative to traditional surgical interventions for treating biliary obstruction. This system reduces the costs and time associated with secondary invasive procedures during surgery, enabling stent placement or release in under one minute. It eliminates the need for stent-to-stent exchanges and obviates the requirement for patient sedation or repeated insertion attempts.

The ConvertX product series generated approximately $1 million in revenue for BrightWater Medical in 2019. Merit Medical’s management estimates that sales of the product will grow to $25 million by the fifth year of its commercialization. Furthermore, manufacturing of ConvertX will be transferred to Merit Medical’s Pearland facility, with management aiming to maintain a gross profit margin within the range of 70% to 75%. Upon receiving the CE mark for ConvertX, Merit Medical anticipates generating an additional $15 million in revenue.

Prior to this, Merit Medical had already completed the acquisition of assets from Becton, Dickinson and Company (BDX). Following the acquisition, Merit Medical obtained products such as the Achieve Programmable Automatic Biopsy System, Temno Biopsy System, Tru-Cut Biopsy Needles, Aspira Pleural Effusion Drainage Kits, and the Aspira Peritoneal Drainage System. These products are sold by Merit Medical’s global direct sales team and distribution partners.

In addition, Merit Medical recently acquired Laurane Medical, a small medical company with manufacturing operations in Europe that specializes in bone biopsy procedures.

Through this series of acquisitions, Merit Medical has expanded its product portfolio, launching products such as EmboCube Embolization Gelatin, basixTAU Inflation Device, Prelude Prestige Peel-Away Sheath Introducer, Prelude Ideal Sheath Introducer, and the PreludeSYNC Radial Hemostasis Device.

It is worth noting that Merit Medical’s core product line, HeRO, has been a key driver of the company’s sustained sales growth. The HeRO dialysis device portfolio includes the HeRO Graft, Super HeRO Adapter, and HeRO Ally Revision Kit, all of which have maintained strong market demand.

It is reported that Merit Medical’s stock rose by 2.3% following the acquisition. This trend also indicates that Merit Medical’s investors view the acquisition as a strategic transaction.

Merit Medical (NASDAQ: MMSI), founded in 1987 and headquartered in Utah, USA, is a leading manufacturer and marketer of single-use medical devices, primarily focused on interventional, diagnostic, and therapeutic procedures in cardiology, radiology, oncology, and other fields.

(Compiled by Wang Chan)