NEW: No-Cost StreetSmart Live! Events. This type of intellectual capital is usually not made available to the general public. Learn More

Get the Latest Investment Ideas Delivered Straight to Your Inbox.

TICKERS: CRY

U.S. Medical Device Firm to Acquire Developer of Dissection Stent
Research Report

Share on Stocktwits

Source:

The specifics of the deal and the next steps for CryoLife are presented in a Ladenburg Thalmann report.

In a Sept. 3 research note, Ladenburg Thalmann analyst Jeffrey Cohen reported that CryoLife Inc. (CRY:NYSE) agreed to acquire Ascyrus Medical for $200 million.

"We are highly encouraged by the Ascyrus acquisition and anticipate nominal revenues from ex-U.S. territories and improved margins in the near-term as well as clinical and regulatory updates," commented Cohen.

Ascyrus Medical, a private medical device firm based in Florida, developed the Ascyrus Medical Dissection Stent (AMDS), "the first aortic arch remodeling device utilized for the treatment of type A aortic dissections (TAAD)," Cohen described. Having CE Mark and Health Canada approvals for the AMDS, the company has sold the device on a limited basis in Europe and Canada, generating pro forma revenue of about $3 million.

Of the total consideration for the acquisition, Georgia-based CryoLife is to pay Ascyrus Medical $80 million upfront, $60 million of it in cash and $20 million in common CryoLife shares. The biopharma will pay the remainder of the $200 million in increments when it achieves certain milestones related to AMDS, specifically regulatory approval in various regions.

Cohen highlighted that the current treatment for TAAD is hemi-arch repair, in which a graft is employed to close the ascending part of the aorta, and the use of an AMDS in addition to the hemi-arch repair greatly improves the result.

"Based upon the superior outcomes in patients treated with both, it is anticipated that utilizing AMDS could become the standard of care with a $540 million market opportunity," he added, noting that an estimated 48,000 patients globally per year experience TAAD.

Cohen indicated that CryoLife expects that in the United States it will next get an investigational device exemption for the AMDS from the U.S. Food and Drug Administration. It would follow this with a pivotal trial starting in H2/21 and garner eventual device approval in the U.S. in 2024. Also, the biotech company is working to get the AMDS approved in Japan, hopefully by 2025.

CryoLife intends to capitalize on its sales force in Latin America, Europe and the Asia Pacific to now sell the AMDS in countries covered by the CE Mark.

Ladenburg Thalmann has a Buy rating and a $29.50 per share price target on CryoLife, the stock of which is currently trading at about $18.18 per share.

[NLINSERT]

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures from Ladenburg Thalmann, CryoLife Inc., September 3, 2020

ANALYST CERTIFICATION: I, Jeffrey S. Cohen, attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report, provided, however, that:

The research analyst primarily responsible for the preparation of this research report has or will receive compensation based upon various factors, including the volume of trading at the firm in the subject security, as well as the firm’s total revenues, a portion of which is generated by investment banking activities.

COMPANY SPECIFIC DISCLOSURES: N/A




Learn More about Streetwise Reports Live

Want to read more about Medical Devices investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe