Merit Medical Systems Acquires View Point Medical, Inc.: Expanding Therapeutic Oncology Portfolio

Key Highlights of the Acquisition

• Transaction Details:
  • Merit Medical Systems, Inc. (NASDAQ: MMSI) has acquired View Point Medical, Inc. via a merger transaction. View Point is now a wholly-owned subsidiary.
  • View Point is located in Carlsbad, California and manufactures the FDA-cleared OneMark® Detection Imaging System and OneMark Tissue Markers.
  • Total consideration is approximately \$140 million, with \$90 million paid in cash at closing and two deferred payments of \$25 million each due by the first and second anniversaries of closing.
• Strategic Rationale:
  • The acquisition expands Merit’s portfolio of therapeutic oncology products, enhancing capabilities for accurate diagnosis and localization of breast and soft tissue tumors.
  • Merit’s existing SCOUT® platform (wire-free, non-radioactive breast localization) will be complemented by View Point’s ultrasound-enhanced technology, enabling localization of more lesions at time of biopsy—estimated 1.3 million procedures annually in the U.S.
  • The combination of SCOUT and OneMark provides new options for physicians, potentially reducing the need for separate tumor marking procedures prior to surgery.
• Product and Market Impact:
  • The OneMark System is FDA-cleared and features a surgical detection console and ultrasound-enhanced tissue markers visible across multiple imaging modalities, engineered to minimize interference.
  • Early localization at the time of biopsy can help physicians plan treatment and may reduce additional localization procedures, directly benefiting patient care and workflow efficiency.

Financial Summary & Shareholder Considerations

• Revenue Contribution:
  • From April 1, 2026 through December 31, 2026, projected revenue contribution is \$2 million to \$4 million.
  • For the twelve months ending December 31, 2027, projected revenue is \$14 million to \$16 million, with anticipated sales growth of at least 20% per year for the OneMark System.
• Profitability Impact:
  • For 2026, the acquisition is projected to dilute previously forecasted non-GAAP earnings per share by approximately \$0.05, inclusive of \$2.0 million in lower interest income due to use of cash for the acquisition.
  • Excludes approximately \$5.3 million of non-cash and non-recurring transaction-related expenses.
  • The acquisition is expected to be dilutive to Merit’s full-year 2026 GAAP net income and earnings per share.
  • For 2027, the acquisition is projected to be accretive to non-GAAP earnings per share and operating margins, with a 70% non-GAAP gross margin. However, it will remain dilutive to GAAP net income and earnings per share in 2027, turning accretive thereafter.
• Shareholder & Price Sensitive Information:
  • The immediate dilution to earnings per share in 2026 and 2027 (GAAP) is a key consideration for shareholders and may impact share price in the near term. The accretive impact (non-GAAP) from 2027 onwards could be a longer-term positive.
  • Rapid sales growth and high margin profile for OneMark System could prove attractive to investors, especially if market adoption meets or exceeds projections.
  • All financial estimates are subject to change and are not intended as predictions of future operating results.

Risks and Forward-Looking Statements

• Integration Risks: Successful integration of View Point Medical’s business, assets, and operations is key to realizing anticipated financial, product development, and operational benefits.
• Market Risks: Uncertainties exist regarding achievement of projected revenues, adoption of new products, and competitive positioning. Any failure to meet projections could negatively impact Merit’s share value.
• External Risks: Risks include supply chain disruptions, government reimbursement policy changes, regulatory challenges, litigation, fluctuations in currency and interest rates, cybersecurity threats, and geopolitical events.
• Other Risks: Product recalls, liability claims, changes in tax laws, environmental compliance, changes in key personnel, labor shortages, price competition, and extreme weather events may affect business performance.
• Disclosure: For a comprehensive list of risks, investors are encouraged to review Merit’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC.

Advisors and Company Overview

• Advisors: Piper Sandler & Co. served as financial advisor and Baker & McKenzie LLP as legal advisor for Merit Medical.
• Company Profile: Merit Medical Systems, founded in 1987, develops and manufactures proprietary medical devices for interventional, diagnostic, and therapeutic procedures, with a focus on cardiology, radiology, oncology, critical care, and endoscopy. The company employs approximately 7,600 people worldwide and operates a domestic and international sales force and clinical support team of over 800 individuals.

Investor and Media Contacts

• PR/Media Inquiries: Sarah Comstock, Merit Medical Systems, Inc., +1-801-432-2864, [email protected]
• Investor Inquiries: Mike Piccinino, CFA, IRC, ICR Healthcare, +1-443-213-0509, [email protected]

Disclaimer

This article contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those projected. Investors should not rely solely on this article for investment decisions and are encouraged to review official SEC filings and consult their financial advisors. Merit Medical assumes no obligation to update forward-looking statements except as required by law.

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