- My News
- All News
- Most Popular
Merit Medical Systems announced Monday that it has acquired BrightWater Medical, gaining the latter's ConvertX system used to treat severe obstructions of the ureter. The deal consists of an upfront payment of $35 million along with potential earn-out payments of up to $15 million based on receipt of CE mark approval and achievement of future sales targets.
Fred P. Lampropoulos, CEO of Merit Medical, remarked that "the ConvertX system is designed to reduce multiple visits to the hospital, saving patients the risk and discomfort of a second interventional procedure." He noted that the system "complements Merit's Resolve drainage catheter portfolio and potentially drives pull-through of other Merit products," adding that "our ability to align this product with our existing sales force calling on interventional radiologists, as well as growth in markets outside the US will allow for future growth."
According to Merit Medical, the single device can replace a series of devices and procedures used to treat severe obstructions of the ureter. Once implanted, the system converts from a nephroureteral catheter to a nephroureteral stent without requiring sedation or local anaesthesia. In March, BrightWater Medical received FDA clearance for the ConvertX biliary stent system for treatment of biliary obstructions.
Merit Medical said it intends to maintain BrightWater Medical's production capabilities in Temecula, California, over the next several months, while duplicating those capabilities in its catheter facility in Pearland, Texas, prior to transferring the ConvertX manufacturing operations to its Pearland facility. Merit Medical estimates that the transaction will be around $0.03 decretive to earnings per share for the year ending December 31, while ConvertX product sales for 2019 will be around $1 million with expectations of growth to approximately $25 million in the fifth full year of sales.
Did you like this article?