Did CryoLife & #039;s Revenue Miss Overshadow Its Big Deal?

CryoLife has struck a $225 million cash-stock deal that is expected to boost the company’s growth prospects, but the news was not enough to buoy shareholder confidence in the company's stock on Wednesday. The plans to acquire Jotec, a German company that makes endovascular stent grafts, and cardiac and vascular surgical grafts, focused on aortic repair. CryoLife also reported a third-quarter revenue miss by about $2 million, which was largely attributable to recent hurricanes in Texas and Florida. The company's shares [NYSE: CRY] dropped 14.16% ($3.30) Wednesday to close at $20. "We believe this acquisition will enable CryoLife to deliver sustained, high single-digit revenue growth, while also diversifying our revenues into a significantly larger addressable market," said Pat Mackin, chairman and CEO of CryoLife. "Jotec has a technologically differentiated product portfolio addressing the $2 billion global market for stent grafts used in endovascular and open repair of aortic diseases. Their advanced product portfolio has allowed them to achieve a 17% revenue CAGR over the past five years, significantly outpacing the growth in the overall European market." Mackin said the acquired portfolio is expected to continue growing in the double digits outside the United States for at least the next five years. The company also will be able to leverage its global infrastructure and accelerate its ability to sell directly in Europe, he added, "and will foster considerable cross-s...
Source: MDDI - Category: Medical Devices Authors: Tags: Medical Device Business Cardiovascular Source Type: news