Surmodics, Inc. (SRDX) Bundle
A Brief History of Surmodics, Inc.
Surmodics, Inc. (Nasdaq: SRDX) is a prominent provider of medical device and in vitro diagnostic technologies, headquartered in Eden Prairie, Minnesota. The company has made significant strides in the healthcare industry, particularly in the medical device sector, where it has developed innovative solutions.
Recent Financial Performance
As of the end of fiscal year 2024, Surmodics reported the following financial highlights:
| Metric | FY 2024 | FY 2023 |
|---|---|---|
| Total Revenue | $126.1 million | $132.6 million |
| GAAP Net Loss | $(11.5) million | $(1.5) million |
| Adjusted EBITDA | $14.7 million | $21.5 million |
| Medical Device Revenue | $97.5 million | $105.8 million |
| In Vitro Diagnostics Revenue | $28.6 million | $26.8 million |
Fourth Quarter Highlights
For the fourth quarter of fiscal 2024, Surmodics achieved:
| Metric | Q4 FY 2024 | Q4 FY 2023 |
|---|---|---|
| Total Revenue | $33.2 million | $27.9 million |
| GAAP Net Loss | $(3.4) million | $6.7 million (net income) |
| Adjusted EBITDA | $4.4 million | $1.7 million |
Acquisition News
On May 29, 2024, Surmodics announced a definitive agreement to be acquired by an affiliate of GTCR LLC for $43.00 per share, valuing the company at approximately $627 million. This merger was approved by shareholders on August 13, 2024, and is expected to close in the second fiscal quarter of 2025, pending regulatory approvals.
Market Developments
In October 2024, Surmodics received FDA 510(k) clearance for its Pounce™ XL Thrombectomy System, expanding its product offerings in the vascular market. Early results from a registry study indicated a high procedural success rate with this device.
Balance Sheet Overview
As of September 30, 2024, Surmodics had the following balance sheet highlights:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $36.1 million |
| Outstanding Debt | $34.6 million |
| Total Assets | $178.6 million |
| Total Liabilities | $59.7 million |
| Total Stockholders’ Equity | $118.9 million |
Looking Ahead
Surmodics did not provide official financial guidance for fiscal year 2025 due to the pending acquisition.
A Who Owns Surmodics, Inc. (SRDX)
Ownership Structure
As of 2024, Surmodics, Inc. (NASDAQ: SRDX) is in the process of being acquired by GTCR LLC, a private equity firm. The acquisition proposal indicates that GTCR will acquire all outstanding shares of Surmodics at a price of $43.00 per share, which values the company at approximately $627 million. This deal was approved by Surmodics' shareholders on August 13, 2024, and is subject to regulatory approvals.
Major Shareholders
The following table outlines the major shareholders of Surmodics, Inc. as of the latest available data in 2024:
| Shareholder Type | Name | Ownership (%) | Shares Owned |
|---|---|---|---|
| Institutional Investors | BlackRock, Inc. | 10.2% | 1,450,000 |
| Institutional Investors | The Vanguard Group, Inc. | 8.5% | 1,200,000 |
| Insider Ownership | Gary Maharaj (CEO) | 1.4% | 200,000 |
| Insider Ownership | Other Executives | 1.1% | 150,000 |
| Other Investors | GTCR LLC | Pending Acquisition | Pending Acquisition |
Insider Transactions
Insider transactions leading up to the acquisition have included stock sales and options exercised by key executives, reflecting confidence in the forthcoming merger. The CEO, Gary Maharaj, and other executives have been involved in transactions that may impact their overall ownership percentages post-merger.
Market Response and Stock Performance
Following the announcement of the acquisition by GTCR, Surmodics' stock price demonstrated significant volatility, reflecting investor sentiment regarding the merger and future prospects. The stock closed at approximately $42.50 shortly after the announcement, showing a favorable response to the acquisition proposal.
Financial Overview
For the fiscal year ending September 30, 2024, Surmodics reported total revenue of $126.1 million, a decrease from $132.6 million in the previous fiscal year. The company experienced a GAAP net loss of $(11.5) million, or $(0.82) per diluted share.
| Financial Metric | 2024 Amount | 2023 Amount | Change (%) |
|---|---|---|---|
| Total Revenue | $126.1 million | $132.6 million | -5% |
| GAAP Net Loss | $(11.5) million | $(1.5) million | -666.7% |
| Adjusted EBITDA | $14.7 million | $21.5 million | -31.5% |
Regulatory Considerations
The merger is currently under review by the U.S. Federal Trade Commission (FTC), which has issued a “Second Request” for additional information regarding the acquisition. This regulatory hurdle must be cleared before the merger can be completed.
Surmodics, Inc. (SRDX) Mission Statement
Overview of Surmodics' Mission Statement
As of 2024, Surmodics, Inc. continues to emphasize its commitment to advancing medical device and in vitro diagnostic technologies. The company aims to enhance patient outcomes by delivering innovative solutions while maintaining a strong focus on regulatory compliance and quality assurance.
Financial Performance Summary
In fiscal 2024, Surmodics reported a total revenue of $126.1 million, a decrease from $132.6 million in the previous year. This figure includes $5.1 million from SurVeil DCB license fee revenue, compared to $29.6 million in the prior year, which was significantly impacted by a $25.0 million milestone payment recognized in 2023.
| Financial Metric | Fiscal Year 2024 | Fiscal Year 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $126.1 million | $132.6 million | ($6.5 million) | (5%) |
| GAAP Net Loss | $(11.5) million | $(1.5) million | ($10.0 million) | (667%) |
| Adjusted EBITDA | $14.7 million | $21.5 million | ($6.8 million) | (32%) |
| Medical Device Revenue | $97.5 million | $105.8 million | ($8.3 million) | (8%) |
| In Vitro Diagnostics Revenue | $28.6 million | $26.8 million | $1.8 million | 7% |
Recent Developments
On May 29, 2024, Surmodics announced a definitive agreement to be acquired by an affiliate of GTCR LLC for $43.00 per share, representing an approximate equity value of $627 million. This acquisition is expected to be completed by the second fiscal quarter ending March 31, 2025, pending regulatory approval.
Operational Highlights
Surmodics has experienced significant growth in its Medical Device segment, particularly with a nearly 40% year-over-year increase in product revenue. This growth is attributed to heightened demand for its vascular interventional products, including the Pounce Thrombectomy Platform.
Balance Sheet Overview
As of September 30, 2024, Surmodics reported:
- Cash and investments: $40.1 million
- Outstanding borrowings on revolving credit facility: $5.0 million
- Outstanding borrowings on term loan facility: $25.0 million
- Access to additional debt capital: $65.0 million
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $36.1 |
| Available-for-sale Securities | $4.0 |
| Accounts Receivable, Net | $13.3 |
| Inventories | $15.2 |
| Total Assets | $178.6 |
| Total Liabilities | $59.7 |
| Total Stockholders' Equity | $118.9 |
Market Position and Future Outlook
Surmodics is well-positioned in the healthcare market with a focus on innovative medical technologies. The company is not providing fiscal guidance for 2025 due to the pending acquisition.
How Surmodics, Inc. (SRDX) Works
Company Overview
Surmodics, Inc. (NASDAQ: SRDX) is a provider of medical device and in vitro diagnostic technologies. The company operates primarily in two segments: Medical Devices and In Vitro Diagnostics (IVD).
Financial Performance
For the fiscal year ending September 30, 2024, Surmodics reported:
| Metric | Value |
|---|---|
| Total Revenue | $126.1 million |
| GAAP Net Loss | $(11.5) million |
| Adjusted EBITDA | $14.7 million |
| Medical Device Revenue | $97.5 million |
| IVD Revenue | $28.6 million |
Quarterly Performance
In the fourth quarter of fiscal 2024, the company achieved:
| Metric | Value |
|---|---|
| Total Revenue | $33.2 million |
| GAAP Net Loss | $(3.4) million |
| Adjusted EBITDA | $4.4 million |
| Medical Device Revenue | $25.8 million |
| IVD Revenue | $7.5 million |
Revenue Breakdown
For the fiscal year 2024, the revenue breakdown is as follows:
| Segment | Revenue (in millions) |
|---|---|
| Medical Device | $97.5 |
| In Vitro Diagnostics | $28.6 |
Operating Costs and Expenses
Operating costs for the fiscal year 2024 totaled:
| Cost Type | Value (in millions) |
|---|---|
| Product Costs | $33.0 |
| Research and Development | $38.4 |
| Selling, General and Administrative | $56.8 |
Balance Sheet Summary
As of September 30, 2024, Surmodics' balance sheet highlights include:
| Item | Value (in millions) |
|---|---|
| Cash and Cash Equivalents | $36.1 |
| Accounts Receivable | $13.3 |
| Inventories | $15.2 |
| Total Assets | $178.6 |
| Total Liabilities | $59.7 |
| Total Stockholders’ Equity | $118.9 |
Recent Developments
On May 29, 2024, Surmodics announced a definitive agreement to be acquired by an affiliate of GTCR LLC for $43.00 per share, representing an approximate equity value of $627 million. The merger is expected to be completed in the second fiscal quarter of 2025, subject to regulatory approvals.
Market Trends and Future Outlook
Surmodics has recently received FDA clearance for its Pounce™ XL Thrombectomy System, which expands its market presence in vascular interventional products. The company anticipates continued growth driven by robust demand for its medical devices, particularly the Pounce Thrombectomy Platform and SurVeil drug-coated balloon.
How Surmodics, Inc. (SRDX) Makes Money
Revenue Streams
Surmodics, Inc. generates revenue primarily through two segments: Medical Devices and In Vitro Diagnostics (IVD).
Medical Device Revenue
In fiscal year 2024, Surmodics reported total Medical Device revenue of $97.5 million, a decrease of 8% from $105.8 million in fiscal year 2023. The breakdown is as follows:
| Category | Fiscal Year 2024 | Fiscal Year 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Product Sales | $45.6 million | $34.1 million | $11.5 million | 34% |
| Royalties & License Fees | $37.4 million | $32.8 million | $4.6 million | 14% |
| License Fees - SurVeil DCB | $5.1 million | $29.6 million | $(24.5) million | (83%) |
Medical Device product sales, driven by the Pounce thrombectomy device and SurVeil DCB, increased significantly, while license fees for SurVeil DCB showed a substantial decline due to a milestone payment recognized in the previous fiscal year.
In Vitro Diagnostics Revenue
In the IVD segment, Surmodics reported revenue of $28.6 million in fiscal 2024, compared to $26.8 million in fiscal 2023, marking a 7% increase. This segment's growth is attributed to:
- Increased sales of distributed antigen products.
- Growth in microarray slide/surface products.
Total Revenue Overview
For the fiscal year ended September 30, 2024, Surmodics reported total revenue of $126.1 million, down from $132.6 million in the previous year. Excluding SurVeil DCB license fee revenue, total revenue increased by 17% to $121 million.
| Metric | Fiscal Year 2024 | Fiscal Year 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $126.1 million | $132.6 million | $(6.5) million | (5%) |
| Total Revenue (Excl. SurVeil DCB) | $121.0 million | $103.0 million | $18.0 million | 17% |
Operating Performance
In fiscal year 2024, Surmodics reported a GAAP net loss of $(11.5) million, or $(0.82) per diluted share, compared to a net loss of $(1.5) million, or $(0.11) per diluted share, in fiscal 2023. Adjusted EBITDA for the year was $14.7 million, a decrease from $21.5 million in fiscal 2023.
Cost Structure
Total operating costs and expenses for fiscal year 2024 were $131.7 million, compared to $127.4 million in fiscal 2023. The breakdown is as follows:
| Expense Category | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|
| Product Costs | $33.0 million | $25.0 million |
| Research and Development | $38.4 million | $46.6 million |
| Selling, General and Administrative | $56.8 million | $51.9 million |
Increased costs were primarily driven by higher selling, general and administrative expenses, which included merger-related charges of $3.7 million related to the pending acquisition by GTCR.
Financial Position
As of September 30, 2024, Surmodics had total assets of $178.6 million and total liabilities of $59.7 million. Cash and cash equivalents stood at $36.1 million, down from $41.4 million in the prior year. The company reported $40.1 million in cash and investments, with $5.0 million in outstanding borrowings on its revolving credit facility.
Recent Developments
Surmodics announced a definitive agreement to be acquired by GTCR for $43.00 per share, representing an approximate equity value of $627 million. The merger is expected to close in the second fiscal quarter ending March 31, 2025, subject to regulatory approvals.
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Resources:
- Surmodics, Inc. (SRDX) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Surmodics, Inc. (SRDX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Surmodics, Inc. (SRDX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.