November 14, 2018 — Disposable device manufacturer Merit Medical Systems Inc. announced the closing of a definitive merger agreement to acquire Cianna Medical Inc., headquartered in Aliso Viejo, Calif. The deal structure includes an upfront payment of $135 million with potential earn-out payments of an additional $15 million for achievement of supply chain and scalability metrics, and up to an additional $50 million for achievement of sales milestones.
Cianna Medical develops, manufactures and markets products for wire-free breast localization, designed to reduce costs, improve quality, and reduce the anxiety and stress breast cancer treatments place on women and their families. Its research and development (R&D) and commercialization teams developed the first non-radioactive, wire-free breast localization system and what it calls the world’s only technology that utilizes radar in human tissue. Its Scout and Savi Brachy technologies are U.S. Food and Drug Administration (FDA)-cleared and address unmet needs in the delivery of radiation therapy, tumor localization and surgical guidance.
The Scout device has grown from $1 million in revenues in its 2015 debut to a projected $29 million in revenues in 2018. Current estimated market share is approximately 5 percent with no revenues currently outside the United States.
Merit Chairman and CEO Fred P. Lampropoulos said the Savi Scout is complementary to Merit’s strategic biopsy initiatives, noting that the product is pending CE mark approval in addition to its FDA clearance. Lampropoulos added that Merit intends to market the Savi Brachy, but only the catheter and not the radiation seeds.