SOUTH JORDAN, Utah, Feb. 27, 2007 (PRIME NEWSWIRE) -- Merit Medical Systems, Inc. (Nasdaq:MMSI), a manufacturer and marketer of proprietary disposable devices used primarily in cardiology and radiology procedures, announced today that it has acquired the ProGuide chronic dialysis catheter product line from Datascope Corp. (Nasdaq:DSCP). The product line was acquired for $3 million in cash plus a royalty on future sales and includes intellectual property, inventory and manufacturing equipment.
The acquired products have received 510(k) notification and CE mark approval and will continue to be supplied to existing customers without interruption.
"This transaction adds to Merit's portfolio a high-margin product line which has been well received and will be sold worldwide to our existing points of sale in interventional radiology," said Fred P. Lampropoulos, Merit's Chairman and Chief Executive Officer. "Additional new dialysis product offerings, which include other Merit products, are already in the planning stage. The market for dialysis catheters and accessories is over $200 million worldwide, and we are enthusiastic about the opportunities."
Dr. Jeffrey Siegel, Director of Radiology and Interventional Radiology at Dallas Nephrology Associates, said, "We are pleased that we will continue to be able to use the ProGuide catheter in our patients following the sale of the product to Merit Medical. The ease of insertion and long-term patency of this catheter have made it our first choice when placing tunneled dialysis catheters in our facility."
Merit's acquisition will be discussed during its upcoming conference call on Wednesday, February 28, at 3:00 p.m. Mountain Time. The telephone numbers to call are (domestic) 800-240-2430; and (international) 303-262-2137. A live webcast will also be available at www.merit.com and www.fulldisclosure.com.
ABOUT MERIT
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 and radiology. Merit serves client hospitals worldwide with a domestic and international sales force totaling approximately 85 individuals. Merit employs approximately 1,750 people worldwide, with facilities in Salt Lake City and South Jordan, Utah; Santa Clara, California; Angleton, Texas; Richmond, Virginia; Maastricht and Venlo, The Netherlands; and Galway, Ireland.
Statements contained in this release, which are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 and are subject to risks and uncertainties such as those described in Merit's Annual Report on Form 10-K for the year ended December 31, 2005. Such risks and uncertainties include market acceptance of new products, introduction of products in a timely fashion, product recalls, delays in obtaining regulatory approvals, or the failure to maintain such approvals, cost increases, fluctuations in and obsolescence of inventory, price and product competition, availability of labor and materials, development of new products and technology that could render Merit's products obsolete, product liability claims, modification or limitation of governmental or private insurance reimbursement, infringement of Merit's technology or the assertion that Merit's technology infringes the rights of other parties, foreign currency fluctuations, challenges associated with the Company's growth strategy, changes in health care markets related to health care reform initiatives, litigation and other factors referred to in the Company's 10-K and other reports filed with the Securities and Exchange Commission. All subsequent forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Actual results may differ materially from anticipated results. Financial estimates are subject to change and are not intended to be relied upon as predictions of future operating results, and Merit assumes no obligation to update or disclose revisions to those estimates.