SurModics has acquired NorMedix; a company focused on the development of ultra-thin walled, minimally invasive catheter technologies. This acquisition is intended to bolster SurModic’s vascular device expertise and research and development capabilities.
SurModics recently acquired Creagh Medical, and, according to a press release, these events are part of the company’s attempt to begin to offer whole-product solutions to medical device customers. SurModic have attempted to strategically combine the capabilities of NorMedix’s catheter-based technologies, Creagh Medical’s percutaneous transluminal angioplasty balloon platform, and SurModic’s own coating and drug delivery technologies.
“With NorMedix we will have a differentiated catheter-technology platform and additional design and development expertise that will enhance the value we offer our medical device customers,” says Gary Maharaj, president and chief executive officer, SurModics.
According to a SurModics press release, NorMedix’s leadership team has a track-record of successfully developing and launching market-leading medical devices. In addition to developing and licensing its haemostasis sealing device to several medical device customers, the company has developed advanced braiding technologies, which allow for the design, development and manufacture of highly differentiated catheters to support complex interventional procedures. This proprietary technology should complement SurModics’ new hydrophilic coating innovations and future drug-coated balloon platforms. According to SurModics, the combined organisation, with Creagh Medical and NorMedix, will have the capabilities to support customers from concept to commercialisation. Gregg Sutton, current president and chief executive officer of NorMedix, will join the SurModics leadership team as vice president of research and development, reporting to Gary Maharaj.
SurModics acquired NorMedix for US$14 million, including an upfront payment of US$7 million, and up to US$7 million based on the achievement of revenue and other value-creating milestones through September 30, 2019. Other financial terms of the agreement were not disclosed.
As a result of the NorMedix transaction, SurModics is adjusting fiscal 2016 revenue guidance from a range of US$60 million to US$64 million to an adjusted range of US$62 million to US$66 million. Further, the company is revising its diluted earnings per share guidance from a range of US$0.38 to US$0.43 per share to a revised range of US$0.30 to US$0.35 per share. The transaction is not expected to impact non-GAAP earnings guidance of US$0.66 to US$0.75 per share.