Merit Medical Systems Announces Three-Part Deal With Vysera Biomedical Limited
27th October 2009
Merit Medical Systems, Inc. (Nasdaq:MMSI), a leading manufacturer and marketer of proprietary disposable devices used primarily in cardiology, radiology and gastroenterology procedures, announced today that the Company has completed a three-part deal with Vysera Biomedical Limited located in Galway, Ireland, which will give Merit access to certain intellectual property and know-how for valve technology, opportunities to commercialize certain biomaterial technology and equity ownership in Vysera.
The transactions provide Merit with an exclusive license for certain valve technology that may be incorporated into non-vascular stents, specifically esophageal stents, to address acid reflux conditions. Secondly, the transactions provide Merit with an exclusive license for the development and use of certain biomaterial technology for the coating of selected non-vascular stents and gastrointestinal and drainage catheters.
Finally, the transactions provide Merit with an equity investment of approximately $2.4 million, which will give Merit an approximate 14.45% fully-diluted participating equity interest in Vysera. Additionally, Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer, has been elected as a director of Vysera.
The total amount paid by Merit to Vysera in license fees and equity purchase payments is approximately $3.9 million.
“We are pleased to join the Enterprise Equity Investment Fund Limited, Enterprise Ireland, the Western Development Commission and other Vysera investors in what we believe are cutting-edge device and biomaterial opportunities,” Lampropoulos said. “We believe the licensed technologies will be beneficial for products developed for Merit’s Endotek division as well as our interventional radiology product group.”
Donal Devery, Chief Executive Officer of Vysera, said, “We look forward to the association with Mr. Lampropoulos and Merit Medical Systems. Their long record of innovation and growth in addition to their marketing resources with global reach will expedite the commercialization of our technology in the medical device market.”
Further details of this transaction will be discussed during Merit’s investor conference call to be held today at 5:00 p.m. Eastern (4:00 p.m. Central, 3:00 p.m. Mountain, and 2:00 p.m. Pacific). The telephone numbers to call are (domestic) 877-941-1465; and (international) 480-629-9678. A live webcast will also be available for the conference call at www.merit.com and www.fulldisclosure.com.
Founded in 1987, Merit Medical Systems, Inc. is engaged in the development, manufacture and distribution of proprietary disposable medical devices used in interventional and diagnostic procedures, particularly in cardiology, radiology and gastroenterology. Merit serves client hospitals worldwide with a domestic and international sales force totaling approximately 125 individuals. Merit employs approximately 1,880 people worldwide, with facilities in Salt Lake City and South Jordan, Utah; Angleton, Texas; Richmond, Virginia; Maastricht and Venlo, The Netherlands; and Galway, Ireland.