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SOUTH JORDAN, Utah - Merit Medical Systems, Inc. (NASDAQ: MMSI), a key player in healthcare technology with a market capitalization of $5.8 billion, has announced the acquisition of Biolife Delaware, L.L.C. ("Biolife"), which is now a fully-owned subsidiary. According to InvestingPro data, the company maintains a strong financial health score of "GREAT" and operates with moderate debt levels. The transaction, valued at around $120 million, was paid in cash alongside the assumption of Biolife’s liabilities.
Biolife, based in Sarasota, Florida, specializes in patented hemostatic devices branded as StatSeal and WoundSeal, catering to a global market estimated at $350 million. These products are designed to expedite the sealing of wounds and vascular access sites, enhancing patient recovery and reducing post-procedure care complexities. The acquisition is expected to generate approximately $18 million in annualized revenue starting in fiscal year 2026, with mid-teens growth and accretive non-GAAP margin and profitability.
Merit Medical’s Chairman and Chief Executive Officer, Fred P. Lampropoulos, expressed enthusiasm for the expansion of their hemostatic solutions portfolio, which is anticipated to offer a more comprehensive suite of products for healthcare providers. The company’s strong liquidity position, with a current ratio of 4.87, provides ample resources to further develop and extend the Biolife product lines. While trading at a premium valuation with a P/E ratio of 46.4x, InvestingPro analysis indicates the stock is currently overvalued.
The financial impact of this merger, effective today, will be included in the updated full-year 2025 financial guidance. The acquisition is projected to contribute $10 to $11 million in revenue for the remainder of the year and is expected to be slightly dilutive to Merit’s non-GAAP profitability for 2025. However, it is forecasted to be accretive to non-GAAP gross margin and operating margin in 2025 and slightly accretive to non-GAAP net income and earnings per share in 2026.
Merit reaffirmed its full-year 2025 financial guidance, which was previously issued on April 24, 2025. The guidance anticipates net sales of $1.480 to $1.501 billion, representing a 9% to 11% year-over-year increase, building on its recent revenue growth of 8.19%. The non-GAAP earnings per share are expected to be between $3.28 and $3.41. For deeper insights into Merit Medical’s financial health and growth prospects, including 11 additional ProTips and comprehensive valuation metrics, explore the detailed Pro Research Report available on InvestingPro.
This strategic move is part of Merit Medical’s ongoing efforts to bolster its position in the healthcare sector by providing innovative medical devices for interventional, diagnostic, and therapeutic procedures. The information for this article is based on a press release statement from Merit Medical Systems, Inc.
In other recent news, Merit Medical Systems reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations. The company posted an earnings per share (EPS) of $0.86, beating the forecast of $0.75, and reported revenue of $355.4 million, slightly above the anticipated $352.52 million. Despite these positive results, Needham analysts adjusted their outlook on Merit Medical, decreasing the price target to $100 from the previous $116, while maintaining a Buy rating. The adjustment followed Merit Medical’s earnings report, which indicated a downward revision of EPS guidance due to tariff impacts, although revenue forecasts remained unchanged.
Merit Medical’s WRAPSODY CIE device, aimed at improving hemodialysis treatment, received Health Canada approval, allowing for immediate commercialization in Canada. The approval was supported by positive results from the WAVE trial, which demonstrated superior performance in maintaining vascular access compared to traditional methods. The device is also commercially available in Brazil, the European Union, and the United States. The company projects sales for WRAPSODY to be between $7 million and $9 million in 2025.
The company’s gross margin increased by 250 basis points year-over-year, while operating margin improved by 230 basis points. However, challenges in the Chinese market, where sales decreased by 10%, were noted. Merit Medical continues to focus on mitigating the impact of tariffs, which have affected EPS guidance. Despite these challenges, the company remains committed to enhancing patient outcomes and expanding its global reach.
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