Merit Medical Inks Deal for Technology from Datascope Corp.

Merit Medical Systems Inc., a manufacturer of proprietary disposable devices used primarily in cardiology, radiology and endoscopy, has purchased two technologies from N.J.-based Datascope Corp. Merit bought the Safeguard Pressure Assisted Device, which is designed to help stop bleeding (hemostasis) after a femoral artery procedure, and the Air-Band Radial Compression Device, which is indicated to assist hemostasis of the radial artery puncture site while maintaining visibility.

Both products have U.S. Food and Drug Administration and CE clearance. The Safeguard currently generates approximately $7 million of revenue, and the Air-Band has not yet been formally launched.

Financing for the transaction was provided by Wells Fargo Bank with an expansion of Merit’s existing credit facility by $40 million, which will provide funds for the transaction as well as additional working capital, according to company leadership.

“A major initiative for Merit is in the area of radial procedures, which are growing rapidly in the United States due to lower costs, improved mobility and shorter hospital stays,” said Fred P. Lampropoulos, Merit’s chairman and CEO. “In many areas of the world, including Scandinavia, France, Japan and Canada, radial procedures often account for more than 50 percent of overall procedures. We believe that the United States could very well achieve those levels over the next several years.”

Lampropoulos continued: “Merit has focused on building a complete line of products for the radial approach, including catheters with specific shapes and uniquely designed sheaths. We also have several new products in various stages of design and development.”
Lampropolous said the company plans to showcase Air-Band at the upcoming Vascular Interventional Advances and Transcatheter Cardiovascular Therapeutics conferences, Lampropoulos added.

“We believe the product line, which is covered by a substantial patent portfolio, is a perfect fit for Merit and fills a gap that existed in our product offering,” he added.

Merit Medical is based in South Jordan, Utah, just outside of Salt Lake City.