Interventional radiology vendor Merit Medical to acquire rival for $140M
Interventional radiology vendor Merit Medical is acquiring a rival imaging-focused firm for $140 million, the two announced Wednesday.
The South Jordan, Utah-based company plans to merge with View Point Medical, which manufactures the OneMark Detection Imaging System. Cleared by the U.S. Food and Drug Administration in 2024, the device uses ultrasound guidance to detect and remove cancer.
Merit Medical—a leading manufacturer of disposable devices such as catheters and guide wires—said it made the move to help expand its portfolio of therapeutic oncology products.
View Point’s ultrasound-based technology is “highly innovative,” it noted, allowing physicians to localize more lesions at the time of biopsy. This represents a market opportunity of 1.3 million procedures annually in the U.S. alone, Merit estimated.
“The acquisition of View Point reinforces Merit’s mission to help reduce the burden that breast cancer places on patients and their loved ones,” Chief Commercial Officer Adam Smith said in a statement April 1. “As treatment protocols evolve, the suspicious area is often most visible at the time of biopsy. Localizing these areas early in a patient’s cancer journey can help physicians plan treatment and may help reduce the need for additional localization procedures.”
Of the purchase price, about $90 million was paid in cash at closing, with Merit assuming the acquired company’s liabilities. Two additional payments of $25 million will be made no later than the first and second anniversaries of the closing date. Merit Medical said the acquisition is projected to contribute additional revenue at upward of $16 million in 2027. Sales of the OneMark System are expected to grow by at least 20% per year with 70% gross margins.
Founded in 1987, Merit Medical also offers the SCOUT radar-based platform, similarly used to mark and locate tumors. Leaders noted that the combined offering of SCOUT and OneMark will provide physicians with “more localization options during the initial diagnostic biopsy.” This, those involved hope, will reduce the need for a separate procedure to mark the location of the tumor prior to surgery.
Analysts with BTIG applauded the merger, maintaining a “buy” rating for publicly traded Merit Medical (MMSI) on Wednesday.
“We believe this acquisition is a nice strategic fit given the overlap in customer call points,” they wrote.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.