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Merit Medical Systems Inc. (MMSI) Steadily Expands Business Space through Strategic Acquisitions

Interventional cardiology and radiology is a complex and relatively new field of medicine. Opening and bypassing clogged blood vessels improves longevity, and also addresses major health problems related to obesity, diabetes, nicotine abuse, and aging. The business implications are challenging because technological barriers to entry are high.

Here is a company that has taken a strong business position in the fluid environment of the Medical Equipment & Supplies industry. The basic management approach has been to acquire an expanding set of technologies so as to provide surgeons with comprehensive support. It has a core business of disposable catheters and guide wires, with essential accessories such as drainage bags. The management has systematically acquired companies that make specialized valves and scalpels. It has acquired versatile technology for flexible plastic that is opaque to imaging methods. Surgeons and hospitals everywhere can look forward to single-window support from this company. It has nearly a third of its business abroad, and enjoys multiple distribution channel support in the United States.

Investors will be glad to see that the management strategy has begun to pay-off. Though the five-year growth rate of Earnings per Share (EPS) is just 5.10 for the company versus 17.99 for the industry, the EPS for the most recent quarter has jumped annually by as much as 59.13%. This company from Utah seems set to hold a vanguard position in interventional vascular surgery. Its manufacturing facilities in Ireland and the Netherlands give it tremendous leverage to grow in Europe as it has done in the United States.

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