Dive Brief:

• Merit Medical Systems has acquired hemostatic device manufacturer Biolife Delaware for approximately $120 million.
• The takeover, which Merit disclosed Tuesday, covers StatSeal and WoundSeal devices designed to stop bleeding. Merit expects the acquisition to add about $18 million of revenue next year.
• Buying Biolife adds to a string of deals by Merit that includes the $210 million acquisition of Cook Medical’s lead management portfolio and $105 million purchase of an acid reflux device from Endogastric Solutions.

Dive Insight:

StatSeal is a topical device that uses a hydrophilic polymer and potassium ferrate to form a seal. The seal stops bleeding to reduce the need for dressing changes. A study of 207 patients with catheter exit site bleeding found 99% of StatSeal dressings lasted seven days. Seven percent of dressings without StatSeal lasted seven days.

WoundSeal is an over-the-counter first aid product that consists of a tube of powder. When applied to a wound and pressed down by hand for 30 seconds, Biolife claims the powder instantly stops bleeding by forming a scab. The company markets the device for the treatment of domestic accidents.  

Merit CEO Fred Lampropoulos said in a statement that StatSeal and WoundSeal “address an estimated $350 million global market opportunity.” The company is forecasting mid-teens growth for the products. Lampropoulos said Merit’s resources and expertise make the company “well positioned to further develop and expand the reach of these product lines.”

Needham analysts said in a note to investors that the “deal makes sense and is consistent with [Merit’s] strategy of pursuing tuck-in acquisitions of complementary products.” J.P. Morgan analysts voiced similar views in another note to investors, calling Biolife “an attractive addition to the portfolio that builds upon Merit’s efforts to expand into more innovative, therapeutic end markets.”

The takeover continues the deal-driven growth of Merit. Last year’s acquisitions of Cook’s lead management devices and Endogastric Solutions’ acid reflux product followed the purchase of dialysis catheter lines for $132.5 million in 2023. Merit also paid $6 million, split evenly between upfront and deferred payments, for devices from Scholten Surgical Instruments in 2024.

An analyst asked Lampropoulos on an earnings call in April whether the Trump administration’s tariffs were affecting the availability of M&A targets and the willingness of companies to strike deals. The CEO said he had heard M&A activity was down but that Merit was “engaged in looking as we always have been.”

“There's a lot of activity in the marketplace,” Lampropoulos said. “There's a lot of stuff out there, people remodeling their portfolios and this and that, so we're busy looking at things.”