Merit Medical Announces Asset Purchase Agreement with EndoGastric Solutions, Inc.®

Core Viewpoint - Merit Medical Systems, Inc. has announced an asset purchase agreement with EndoGastric Solutions, Inc. for approximately $105 million, acquiring the EsophyX® Z+ device, which offers a minimally invasive treatment for GERD patients [1][3][26]. Financial Impact - The acquired assets from EndoGastric Solutions generated about $26 million in revenue for the twelve months ending December 31, 2023, and are expected to contribute between $13 million and $15 million in revenue from the closing date through December 31, 2024 [3][6]. - The acquisition is projected to add approximately $30 million in annualized revenue in the gastrointestinal endoscopy market, leveraging Merit's existing commercial footprint [6][26]. - Merit has updated its full-year 2024 financial guidance to reflect the impacts of this acquisition, reaffirming prior guidance for the standalone business [9][35]. Updated Financial Guidance - The updated financial guidance for the year ending December 31, 2024, includes net sales projected between $1.324 billion and $1.340 billion, reflecting a year-over-year growth of 5% to 7% [29]. - The cardiovascular segment is expected to generate net sales of $1.272 billion to $1.285 billion, while the endoscopy segment is projected to reach $53.3 million to $55.7 million, representing a significant increase from previous guidance [29]. - Non-GAAP earnings per share are now expected to be between $3.22 and $3.31, indicating a year-over-year increase of 7% to 10% [29]. Strategic Rationale - The acquisition aligns with Merit's Continued Growth Initiatives, enhancing its product portfolio in existing clinical specialties and expanding its presence in the multi-billion-dollar gastrointestinal market [26][7]. - The EsophyX Z+ device is designed to provide a durable, minimally invasive treatment option for chronic GERD, addressing a significant healthcare need [1][17].