On June 25,
), a worldwide provider of medical devices, announced that it had
acquired Semprus BioSciences, a biomedical company and a spin-out
from the Massachusetts Institute of Technology's (MIT) Langer Lab.
As a result of this acquisition, the Semprus Sustain Technology has
become part of Teleflex.
Teleflex made an upfront payment of $30 million for the
acquisition. The company will also make future conditional payments
on the basis of attaining certain regulatory and revenue
The acquisition reflects Teleflex's commitment of investment in
innovative late-stage technologies to enhance future growth
opportunities. The acquisition will be beneficial to Teleflex as
Semprus Sustain Technology is a patented and innovative platform
technology and the basis for next-generation medical devices.
Management believes the novel Semprus technology is well aligned
for a broad array of products that can reduce thrombus-related
complications and infections for patients. The technology can also
help in decreasing substantial healthcare costs associated with
medical devices implants.
Also worth mentioning in this context is the FDA 510(k)
clearance of antithrombogenic claims of its existing ARROW PICC
with Chlorag+ard technology. This clearance along with the Semprus
Sustain Technology is expected to provide an excellent innovative
platform for Teleflex for next-generation medical devices.
On the other hand, management at Semprus BioSciences believes
that the acquisition is a remarkable opening to realize growth
opportunities by utilizing the combined strength of both
organizations. Semprus is poised to act as a catalyst for the
sustainable growth of Teleflex.
The Sustain Technology is a durable, covalently bonded,
non-leaching polymer which can aid in the reduction of the
attachment of platelets and blood proteins at the device surface.
Its unique design can reduce the complications of thrombosis and
microbial adhesion over long durations. This has been statistically
supported by in vitro and in vivo animal testing. The foremost use
of the technology is in vascular devices.
Semprus is awaiting the FDA 510(k) clearance as well as CE Mark
approval in Europe for its Peripherally Inserted Central Catheter
(PICC) coated with Sustain technology. The subsequent approval in
the domestic and European market is expected to help Teleflex to
achieve its growth objectives.
Teleflex, headquartered in Limerick, Pennsylvania is a
manufacturer and provider of medical devices used in critical care
and surgery. Its initiative of developing new and innovative
products should help drive sales.
), which operates in similar business segments, are also making
efforts to boost their top-line growth via new product introduction
Teleflex currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating.
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