Merit Medical Systems has completed its acquisition of Cianna Medical.
“We are delighted to have Cianna Medical join the Merit family,” Merit Chairman and CEO Fred P. Lampropoulos said in a statement. “We are looking forward to continuing Cianna’s momentum, expanding internationally, and associating with Cianna Medical’s domestic sales and marketing team.”
The deal, a merger that leaves Cianna as a wholly-owned subsidiary of Merit, was for an upfront cash payment of $135 million with possible additional incentivized payments – $15 million for hitting supply chain and scalability goals and up to $50 million for reaching sales targets.
“Our companies share a rich history of developing technologies that put patients' needs first. Merit Medical brings exceptional resources to the Cianna Medical team that will intensify its growth and broaden its focus beyond breast cancer,” Cianna Medical president and CEO Jill Anderson said when the deal was announced in early October
. “I am delighted that Mr. Lampropoulos will lead an efficient integration of our companies for the benefit of our employees, physicians, hospitals and the women we serve."
The deal gives Merit clients access to Cianna's wire-free breast localization SAVI SCOUT and SAVI Brachy technologies. The SAVI Brachy platform employs a single entry with expanding catheters to fit the tumor cavity and deliver radiation in the form of interstitial brachytherapy, along with tissue-sparing dosimetry capabilities.
Approved by the FDA in 2014
, SCOUT enables doctors to localize a tumor using radar days before surgery, cutting procedure time versus wired localization.
The detector is placed in the target tissue up to seven days before the procedure. During surgery a hand-piece is used to find the detector and audible and visible indicators permit maneuvering to spare healthy tissue while removing the tumor. It is accurate to 1 mm and provides real-time distance measurement.
“I am in a position now where I don't want to do lumpectomies without real-time guidance,” said Dr. Pat Whitworth, breast surgical oncologist and director of the Nashville Breast Center, about the device when it received FDA clearance. “I am confident I'm removing the right tissue and not the tissue I don't need to.”
Since its debut, the device has experienced a revenue growth from $1 million at its debut to a projected $29 million in 2018, with its current estimated market share at approximately 5 percent with no revenues currently outside of the U.S.
“With more than 350 initiations and 45,000 wire-free localizations to date, the SAVI SCOUT is complementary to Merit's strategic biopsy initiatives,” Lampropoulos advised.