Misonix, Inc. Completes Acquisition of Regenerative Medical Company Solsys Medical
September 27 2019 - 2:50PM
Misonix, Inc. (Nasdaq: MSON) (“Misonix” or the “Company”), a
provider of minimally invasive therapeutic ultrasonic medical
devices that enhance clinical outcomes, announced today that it
completed its previously announced acquisition of privately held
Solsys Medical, LLC (“Solsys”), in an all-stock transaction valued
at approximately $109 million on the date prior to closing.
Solsys and its leading cellular and tissue-based
wound treatment, TheraSkin, is highly complementary to Misonix’s
cutting-edge ultrasonic wound debridement solution, SonicOne,
providing Misonix with a large direct advanced wound care
channel-to-market that will enable the Company to expand SonicOne
sales, and together with TheraSkin, establish a new standard of
care in the growing chronic wound care market.
Stavros Vizirgianakis, President and Chief
Executive Officer of Misonix, stated, “Over the last two years, we
have actively managed our business to best position Misonix for the
future with the goal of delivering world-class solutions clinically
proven to improve patient outcomes, while creating new value for
our healthcare partners and shareholders. The addition of Solsys to
our product portfolio addresses these strategic objectives as it
further advances our revenue and competitive position by
substantially broadening Misonix’s addressable market through wound
care solutions that are complementary to our existing products. In
addition, we expect that the combination of the added 80
wound-centric professionals from Solsys, along with our 55
professionals focused exclusively on the surgical market, will
enable us to drive increased sales productivity and market
penetration of the combined company’s products in operating rooms
and hospital outpatient facilities.
“Financially, the Solsys transaction adds
another rapidly growing revenue stream to our platform, as it
generated $24 million of revenues in calendar year 2018 and is
expected to generate top-line growth in in excess of 25% in
calendar year 2019. As such, for the combined company, we are
projecting product revenue growth in excess of 20% and gross profit
margins of approximately 70% for full year fiscal 2020.
“We look forward to working together with
Solsys’ experienced management team and employees to serve our
existing and new customers and maintain the positive operating
momentum across our business while remaining focused on prudently
managing our capital resources as we pursue our goals for
sustainable long-term revenue growth and profitability.”
Under the terms of the agreement, Misonix
acquired Solsys for a total consideration valued at approximately
$109 million, consisting of the issuance of approximately 5.7
million new shares to former Solsys unitholders. Misonix
shareholders now own approximately 64% of the combined entity, and
former Solsys unitholders own approximately 36%. Misonix has
assumed Solsys’ outstanding secured debt of approximately $24
million.
Forward Looking StatementsThis
communication contains forward-looking statements, which address a
variety of subjects including expected future results of operations
and growth. Statements that are not historical facts, including
statements about our beliefs, plans and expectations, are
forward-looking statements. Such statements are based on our
current expectations and are subject to a number of factors and
uncertainties, which could cause actual results to differ
materially from those described in the forward-looking statements.
Important factors and uncertainties that could cause actual results
to differ materially from those described in these forward-looking
statements include, but are not limited to, the risk that expected
benefits, synergies and growth prospects from the acquisition of
Solsys may not be achieved in a timely manner, or at all, and the
risk that Solsys’ business may not be successfully integrated with
Misonix. For additional information about factors that could cause
actual results to differ materially from those described in the
forward-looking statements, please refer to Misonix’s filings with
the SEC, including the risk factors contained in Misonix’s most
recent Quarterly Reports on Form 10-Q and Annual Report on Form
10-K. Forward-looking statements represent management’s current
expectations and are inherently uncertain. Except as required by
law, we do not undertake any obligation to update forward-looking
statements made by us to reflect subsequent events or
circumstances.
About Misonix, Inc.Misonix,
Inc. (Nasdaq: MSON) designs, manufactures and markets ultrasonic
medical devices for the precise removal of hard and soft tissue,
including bone removal, wound debridement and ultrasonic
aspiration. Misonix is focused on leveraging its proprietary
ultrasonic technology to become the standard of care in operating
rooms and clinics around the world. Misonix's proprietary
ultrasonic medical devices are used in a growing number of medical
procedures, including spine surgery, neurosurgery, orthopedic
surgery, cosmetic surgery, laparoscopic surgery, and other surgical
and medical applications. At Misonix, Better Matters to us. That is
why throughout the Company’s history, Misonix has maintained its
commitment to medical technology innovation and the development of
ultrasonic surgical products that radically improve patient
outcomes. Additional information is available on the Company's web
site at www.misonix.com.
Contact: |
|
Joe Dwyer |
Norberto Aja, Jennifer Neuman |
Chief Financial Officer |
JCIR |
Misonix, Inc. |
212-835-8500 or mson@jcir.com |
631-694-9555 |
|
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