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On Wednesday, Canaccord Genuity updated its valuation of Merit Medical Systems , Inc. (NASDAQ:MMSI), increasing the price target from $108.00 to $112.00 and maintaining a Buy rating on the stock. Currently trading at $98.81, the medical device company, with a market capitalization of $5.8 billion, shows mixed signals according to InvestingPro analysis. The adjustment follows Merit Medical (TASE:BLWV)’s announcement that it has completed the acquisition of Biolife Delaware L.L.C., which is now a wholly owned subsidiary of Merit.
Merit Medical, which maintains a strong financial health score of "GREAT" according to InvestingPro metrics, stated that it paid $120 million in cash and assumed liabilities to acquire Biolife, a manufacturer of hemostatic devices known by the brand names StatSeal for professional use and WoundSeal for consumer use. With a robust current ratio of 4.87, the company’s liquid assets well exceed its short-term obligations, supporting its ability to make strategic acquisitions. The company highlighted that Biolife’s products tap into a $350 million global total addressable market (TAM).
With this acquisition, Merit Medical reaffirmed its fiscal year 2025 guidance and updated it to include the expected financial impact from the merger. The company anticipates that Biolife’s product lines will contribute between $10 million and $11 million in revenue in FY25. However, the acquisition is projected to be slightly dilutive to non-GAAP EPS in 2025 due to an anticipated $3 million decrease in interest income on cash balances.
Merit Medical also provided insights into the longer-term financial implications of the acquisition. Excluding $7.2 million of non-cash and non-recurring transaction-related expenses, the company expects the Biolife acquisition to be accretive to non-GAAP gross margin and non-GAAP operating margin in 2025. Furthermore, it is anticipated to have a slightly positive effect on non-GAAP net income and non-GAAP earnings per share in 2026. The strategic move aims to enhance Merit Medical’s product portfolio and strengthen its position in the medical device market.
In other recent news, Merit Medical Systems reported robust financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.86, exceeding the forecast of $0.75, and recorded revenue of $355.4 million, slightly above the anticipated $352.52 million. Despite these positive results, Needham analysts revised their price target for Merit Medical to $100, down from $116, while maintaining a Buy rating. The adjustment followed Merit Medical’s earnings report, which highlighted a consistent organic revenue growth of 6.0% year-over-year in the first quarter.
Additionally, Merit Medical announced the acquisition of Biolife Delaware, valued at approximately $120 million, aimed at enhancing its hemostasis product offerings. This acquisition is projected to contribute $10 to $11 million in revenue for the remainder of the year and is expected to be accretive to the company’s financial performance by 2026. In regulatory developments, Merit Medical received Health Canada approval for its WRAPSODY CIE device, intended to improve hemodialysis treatment, with immediate commercialization plans in Canada. The company also shared successful 12-month outcomes from its WAVE trial, emphasizing the WRAPSODY CIE’s potential to improve patient care.
Merit Medical’s management reaffirmed its full-year 2025 revenue guidance but revised its EPS expectations downward due to tariff impacts, highlighting ongoing efforts to mitigate these challenges. The company anticipates continued revenue growth, driven by its strategic focus on innovation and expansion in the healthcare sector.
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