Merit Medical Systems has signed a definitive merger agreement to acquire BioSphere Medical in an all cash transaction valued at approximately $96 million, inclusive of all common equity and series A preferred preferences.
The agreement provides for a cash payment of approximately $4.38 per share for each outstanding share of BioSphere common stock, representing a premium of 54 percent over BioSphere's closing share price on May 12, 2010.
BioSphere develops and markets embolotherapeutic products for the treatment of uterine fibroids, hypervascularized tumors, and arteriovenous malformations. Says Merit CEO and Chairman, Fred P. Lampropoulos, "We believe BioSphere offers the most advanced embolotherapy technology available today and represents a valuable platform for therapeutic technologies."
Embolotherapy procedures are primarily performed by interventional radiologists and use bioengineered microspheres to create targeted vascular occlusion and drug delivery. Embolotherapy has become an accepted alternative for many women suffering from uterine fibroids who may otherwise undergo a hysterectomy. Similarly, with 600,000 new cases of primary liver cancer per year, there is growing international adoption of embolotherapy with drug-delivery protocols to treat liver cancer.
Through the acquisition of BioSphere, Merit will obtain a platform technology applicable to multiple therapeutic areas with significant market potential while leveraging existing interventional radiology call points. Merit believes embolotherapy to treat uterine fibroids and primary liver cancer represents a worldwide market potential of $650 million and $380 million, respectively.
- check out the Merit Medical release