Merit Medical Acquires DFINE For $97.5M
Merit Medical, a medtech specializing in disposable medical devices in the cardiology, radiology, and oncology segments, has acquired DFINE for $97.5 million in cash. The deal establishes a new segment in spinal products for Merit and augments its oncology business, according to senior leadership.
California-based DFINE’s portfolio includes the StabiliT Vertebral Augmentation System for the treatment of vertebral compression fractures, allowing surgeons to access the fracture and deliver bone cement. More recently, the company introduced the STAR Tumor Ablation System, a minimally invasive option for the removal of metastatic spinal tumors, also approved by the FDA for alleviating associated spinal pain. Both systems have FDA clearance and CE Marking.
Sandeep Bagla, interventional radiologist at Inova Alexandria Hospital in Virginia, explained in a YouTube video that the system combines existing techniques with newer technologies to create an outpatient procedure that can relieve patient pain without disrupting ongoing cancer treatments, such as chemotherapy or radiotherapy.
Merit’s relationship with DFINE began a few years ago when Merit was contracted to supply device components for the StabiliT system, said Merit CEO Fred Lampropoulos in a press release. The acquisition, he said, will form a new business segment for Merit, and the STAR system will “complement and enhance” Merit’s oncology business.
“We plan to combine Merit’s oncology segments, including embolics, microcatheters and biopsy products into a newly created interventional oncology and spine division (IOS),” said Lampropoulos, adding that DFINE’s IP portfolio of 110 U.S. and international patents will aid Merit in achieving “a more therapeutic and disease state centered product offering, and enhance opportunities for future growth.”
With DFINE, Merit’s growth opportunities are substantial in the U.S. and international markets, with room to expand in key locations like Australia, Canada, Japan, China, and the Nordic countries. In the press release, DFINE reported that the company generated 33.4 million in 2015 revenues and that the deal is expected to be revenue neutral for Merit in 2016, due to “business restructuring and consolidation expenses.”
Merit Medical recently signed a distribution deal with PIOLAX Medical Devices in Japan, a company that produces Labyrinth Noah Micro Guide Wire, a product that functions as a standalone device or as a complement to Merit’s SwiftNINJA microcatheters.
“For some time now, we believe we have been at a disadvantage compared to companies that offer microcatheters with a wire included,” said Lampropoulos. “This changes the game.”