Merit Medical (MMSI) Acquires EN Snare(r) Product Rights from Hatch Medical for $21M
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Merit Medical Systems, Inc. (Nasdaq: MMSI) today announced that it has acquired intellectual property, including patents, certain trademarks and know-how, associated with the EN Snare(r) foreign body removal device from Hatch Medical, L.L.C.
The EN Snare(r) device is used by physicians for retrieval and removal of stents, vena cava filters and embolic coils as well as the manipulation of AAA stent grafts and guidewire "pull-throughs."
A third party currently manufactures and distributes the EN Snare(r) product line. Merit intends to exclusively manufacture and distribute the products worldwide beginning early January 2010. Until then, Merit will receive royalties for units sold by the third party.
Current worldwide sales of the EN Snare(r) product line are estimated at approximately $6 million based on IMS data and management's estimate of international sales. According to IMS data, the average sales price for the EN Snare(r) is $330.00. Merit's management believes that its direct sales force in both the United States and Europe will enhance the growth prospects going forward. Management also believes the acquisition will be immediately accretive and estimates earnings of $0.06-0.08 cents after tax in the first full year of production and sales.
The purchase price consists of an initial payment of $14 million with an additional payment of $7 million due once Merit introduces the product into the marketplace, which Merit believes will be early January 2010. The purchase price will be funded by existing cash reserves and a partial use of Merit's $30 million credit facility.
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