Merit Medical Systems Acquires Hemostatic Device Maker Biolife for $120 Million

Merit Medical Systems, a leading medical device manufacturer, has announced the acquisition of Biolife Delaware, a hemostatic device manufacturer, for approximately $120 million. This strategic move expands Merit's portfolio in the rapidly growing hemostasis market and continues the company's trend of targeted acquisitions to enhance its product offerings.

Acquisition Details and Market Opportunity

The acquisition, disclosed on Tuesday, encompasses Biolife's StatSeal and WoundSeal devices, which are designed to stop bleeding in various medical and consumer applications. Merit expects this acquisition to contribute approximately $18 million in revenue for the upcoming year.

Fred Lampropoulos, CEO of Merit Medical Systems, highlighted the significant market potential of these products, stating, "StatSeal and WoundSeal address an estimated $350 million global market opportunity." The company projects mid-teens growth for these product lines, leveraging Merit's resources and expertise to further develop and expand their reach.

Product Portfolio and Clinical Evidence

StatSeal, a topical device utilizing a hydrophilic polymer and potassium ferrate to form a seal, has demonstrated impressive clinical results. A study involving 207 patients with catheter exit site bleeding found that 99% of StatSeal dressings remained effective for seven days, compared to only 7% of dressings without StatSeal.

WoundSeal, an over-the-counter first aid product, consists of a powder that forms an instant scab when applied to a wound and pressed for 30 seconds. Biolife markets this device for treating domestic accidents, positioning it as a convenient solution for minor injuries.

Strategic Fit and Analyst Perspectives

This acquisition aligns with Merit's ongoing strategy of pursuing complementary, tuck-in acquisitions. Needham analysts noted that the "deal makes sense and is consistent with [Merit's] strategy of pursuing tuck-in acquisitions of complementary products." Similarly, J.P. Morgan analysts described Biolife as "an attractive addition to the portfolio that builds upon Merit's efforts to expand into more innovative, therapeutic end markets."

The Biolife acquisition follows a series of recent deals by Merit, including the $210 million acquisition of Cook Medical's lead management portfolio and a $105 million purchase of an acid reflux device from Endogastric Solutions. These transactions underscore Merit's commitment to expanding its product range and market presence through strategic acquisitions.