On June 25, Teleflex Incorporated (TFX - Free Report) , a worldwide provider of medical devices, announced that it had acquired Semprus BioSciences, a biomedical company and a spin-out from the Massachusetts Institute of Technology's (MIT) Langer Lab. As a result of this acquisition, the Semprus Sustain Technology has become part of Teleflex.
Teleflex made an upfront payment of $30 million for the acquisition. The company will also make future conditional payments on the basis of attaining certain regulatory and revenue requirements.
The acquisition reflects Teleflex’s commitment of investment in innovative late-stage technologies to enhance future growth opportunities. The acquisition will be beneficial to Teleflex as Semprus Sustain Technology is a patented and innovative platform technology and the basis for next-generation medical devices.
Management believes the novel Semprus technology is well aligned for a broad array of products that can reduce thrombus-related complications and infections for patients. The technology can also help in decreasing substantial healthcare costs associated with medical devices implants.
Also worth mentioning in this context is the FDA 510(k) clearance of antithrombogenic claims of its existing ARROW PICC with Chlorag+ard technology. This clearance along with the Semprus Sustain Technology is expected to provide an excellent innovative platform for Teleflex for next-generation medical devices.
On the other hand, management at Semprus BioSciences believes that the acquisition is a remarkable opening to realize growth opportunities by utilizing the combined strength of both organizations. Semprus is poised to act as a catalyst for the sustainable growth of Teleflex.
The Sustain Technology is a durable, covalently bonded, non-leaching polymer which can aid in the reduction of the attachment of platelets and blood proteins at the device surface. Its unique design can reduce the complications of thrombosis and microbial adhesion over long durations. This has been statistically supported by in vitro and in vivo animal testing. The foremost use of the technology is in vascular devices.
Semprus is awaiting the FDA 510(k) clearance as well as CE Mark approval in Europe for its Peripherally Inserted Central Catheter (PICC) coated with Sustain technology. The subsequent approval in the domestic and European market is expected to help Teleflex to achieve its growth objectives.
Teleflex, headquartered in Limerick, Pennsylvania is a manufacturer and provider of medical devices used in critical care and surgery. Its initiative of developing new and innovative products should help drive sales. MesaLaboratories (MLAB - Free Report) and Given Imaging , which operates in similar business segments, are also making efforts to boost their top-line growth via new product introduction and acquisition.
Teleflex currently retains a Zacks #2 Rank, which translates into a short-term Buy rating.