KALAMAZOO, Mich.--(BUSINESS WIRE)--Ostial Solutions, LLC, a privately-held company (the “Company”), today announced that it has sold substantially all of its assets to Merit Medical Systems, Inc. (NASDAQ: MMSI). Terms of the transaction were not disclosed.
Based in Kalamazoo, Michigan, Ostial Solutions developed the Ostial Pro Stent Positioning System™ to facilitate precise stent implantation in coronary and renal aorto-ostial lesions, eliminating the guesswork when deploying a stent at the “true” ostium of the vessel. Ostial Solutions was founded in 2003 by R. Kevin Plemmons and Dr. Tim A. Fischell, Dr. David R. Fischell and Dr. Robert E. Fischell for the sole purpose of manufacturing and marketing a medical grade catheter that is used to facilitate precise stent implantation in coronary and peripheral arteries.
Family patriarch Dr. Robert Fischell and his sons Dr. Tim Fischell and Dr. David Fischell have launched over 16 private companies that licensed their patents on medical devices. These companies include Pacesetter Systems, Inc. (now called St. Jude Medical), IsoStent, Inc., NeuroPace, Inc., eNeura Therapeutics, Inc., Ablative Solutions, Inc., MagneMark, LLC, Guardian Helmets, LLC., Ostial Solutions, LLC, GlucoTec, Inc., Angel Medical Systems, Inc., and Svelte Medical Systems, Inc.
Dr. Robert Fischell, Dr. David Fischell and Dr. Tim Fischell are prolific inventors with over 300 issued U.S. and foreign patents, many of which have been the basis for new medical device companies.
The Ostial Pro Stent Positioning System™ has received 510(k) clearance from the U.S. Food and Drug Administration, and Merit has commenced shipments of the product from Merit’s facilities. The product has a hospital price of approximately $800, with margins above Merit’s corporate average.
“We believe this is the right product at the right time to complement many of Merit’s existing products, as well as anticipated future products, such as the Concierge® guiding catheter, which Merit plans to introduce later this year,” said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer. “We believe this tool will help both patients and physicians, by improving the accuracy of stent placement, thereby reducing the potential cost and risk of additional stents, contrast media and x-ray exposure.”
Ostial Solutions was funded by a diverse group of angel investors. “The sale of Ostial Solutions to Merit allows our investors to realize the return on their investments,” said R. Kevin Plemmons, CEO & President of Ostial Solutions. “With Ostial Solutions, our investors have helped launch and grow a medical-device company that has now grown to a point at which it is attractive enough to be acquired by a larger company who can capitalize on the opportunity to scale Ostial Solutions’ product in the marketplace. That means that all Ostial Solutions' investors on this project are going to realize a return on their original investment. They will also have the satisfaction of seeing a company move on to the next level, which is an added benefit of angel investing.”
About Ostial Solutions, LLC
Ostial Solutions, LLC is a Kalamazoo, Michigan-based medical-device development company focusing on the treatment of coronary and peripheral aorto-ostial disease, developing unique, innovative products to address this clinically, critical subset of the patient population.
Honigman Miller Schwartz and Cohn LLP served as legal advisor to Ostial Solutions, for the transaction.
About Merit Medical Systems, Inc.
Founded in 1987, Merit Medical Systems, Inc. is engaged in the development, manufacture and distribution of proprietary disposable medical devices used in interventional and diagnostic procedures, particularly in cardiology, radiology and endoscopy. Merit serves client hospitals worldwide with a domestic and international sales force totaling approximately 130 individuals. Merit employs approximately 2,400 people worldwide with facilities in Salt Lake City and South Jordan, Utah; Angleton, Texas; Richmond, Virginia; Maastricht and Venlo, The Netherlands; Paris, France; Galway, Ireland; Beijing, China; Copenhagen, Denmark; and Rockland, Massachusetts.
Forward-looking information
Statements contained in this release which are not purely historical, including, without limitation, statements regarding Merit's forecasted revenues, net income or other financial results, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties such as those described in Merit's Annual Report on Form 10-K for the year ended December 31, 2010. Such risks and uncertainties include risks relating to product recalls and product liability claims; potential restrictions on Merit's liquidity or its ability to operate its business by its current debt agreements; possible infringement of Merit's technology or the assertion that Merit's technology infringes the rights of other parties; the potential of fines, penalties, or other adverse consequences if Merit's employees or agents violate the U.S. Foreign Corrupt Practices Act or other laws and regulations; expenditures relating to research, development, testing and regulatory approval or clearance of Merit's products and risks that such products may not be developed successfully or approved for commercial use; greater governmental scrutiny and regulation of the medical device industry; reforms to the 510(k) process administered by the U.S. Food and Drug Administration; laws targeting fraud and abuse in the healthcare industry; potential for significant adverse changes in, or failure to comply with, governing regulations; increases in the price of commodity components; negative changes in economic and industry conditions in the United States and other countries; termination or interruption of relationships with Merit's suppliers, or failure of such suppliers to perform; Merit's potential inability to successfully manage growth through acquisitions, including the inability to commercialize technology acquired through recent, proposed or future acquisitions, including the BioSphere acquisition; fluctuations in Euro and GBP exchange rates; Merit's need to generate sufficient cash flow to fund its debt obligations, capital expenditures, and ongoing operations; concentration of Merit's revenues among a few products and procedures; development of new products and technology that could render Merit's existing products obsolete; market acceptance of new products; volatility in the market price of Merit's common stock; modification or limitation of governmental or private insurance reimbursement policies; changes in health care markets related to health care reform initiatives; failure to comply with applicable environmental laws; changes in key personnel; work stoppage or transportation risks; uncertainties associated with potential healthcare policy changes which may have a material adverse effect on Merit; introduction of products in a timely fashion; price and product competition; availability of labor and materials; cost increases; fluctuations in and obsolescence of inventory; and other factors referred to in Merit's Annual Report on Form 10-K for the year ended December 31, 2010 and other materials filed with the Securities and Exchange Commission. All subsequent forward-looking statements attributable to Merit or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Actual results will differ, and may differ materially, from anticipated results. Financial estimates are subject to change and are not intended to be relied upon as predictions of future operating results, and Merit assumes no obligation to update or disclose revisions to those estimates.