diagnostics (IVD) sectors to a company offering "whole product solutions" to medtech OEMs. It announced today the purchase of NorMedix Inc. (Plymouth, MN), a privately owned design and development firm focused on ultra thin-walled, minimally invasive catheter technologies, for $14 million. The sum includes an upfront payment of $7 million, and up to $7 million based on the achievement of revenue and other value-creating milestones through September 30, 2019. Other financial terms of the agreement were not disclosed. This follows the acquisition in November 2015 of Ireland-based balloon catheter developer Creagh Medical.
SurModics explains that these strategic acquisitions combine the best-in-class capabilities of NorMedix's catheter-based technologies, Creagh Medical's percutaneous transluminal angioplasty balloon platform capabilities, and its own coating and drug-delivery technologies to develop highly differentiated delivery and therapeutic intravascular solutions. The result, adds the company, is an organization with device design and development expertise, rich technology content, manufacturing capabilities and a state-of-the-art facility equipped for medical device R&D and manufacturing.
"With NorMedix we will have a differentiated catheter-technology platform and additional design and development expertise that will enhance the value we offer our medical device customers," said Gary Maharaj, President and CEO of SurModics, in a prepared statement. "We remain focused on being a strategic partner to industry-leading medical device companies by offering early access to innovative whole-product solutions."
NorMedix's hemostasis sealing device is licensed to several medical device customers, and the company also has developed advanced braiding technologies, which allow for the design, development and manufacture of highly differentiated catheters to support complex interventional procedures. This proprietary technology is a strong complement to SurModics' new hydrophilic coating innovations and future drug-coated balloon platforms, says SurModics.
SurModics' core offerings include surface modification coating technologies that impart lubricity, healing and biocompatibility characteristics and components for IVD test kits and microarrays. The company's strategy is to build on the product and technical leadership within these fields, and expand the core offerings to generate opportunities for longer term sustained growth.