| |
These investments have added more than 300,000
square feet of new space that will facilitate future growth. As
part of our expansion, we created a new pilot production clean room
for R&D and hired additional R&D staff to support new product launches.
In the year 2005 and early 2006, Merit
introduced several new products, including the Prelude™ sheath introducer,
the Viceroy™ inflation device, the BackStop® Plus safety device,
the Impress™ radiology catheter, the Revolution™ fixation device,
the Honor™ hemostasis valve, the Merit S-MAK™ mini access kit, the
MultiPack Plus™ cardiology catheter kit, the ShortStop Advantage™
safety product and the TriplePlay™ disposal basin. We also introduced
the Merit PAL™ labeling system, the SecureLoc™ safety introducer
|
|
In 2005 Merit also secured 220 new accounts
for our custom procedure tray business in Richmond, which came from
the acquisition of MedSource in November 2004. Although this business
has negatively impacted our gross margins so far, we believe it
is an important part of our ‘stick to stitch’ strategy and that
margins will improve as volumes and efficiencies increase.
In December 2005 Merit acquired the capital
stock of MCTec Holding, B.V., a Dutch corporation located in Venlo,
The Netherlands, from Angiotech Pharmaceuticals, Inc. for approximately
$3 million cash. MCTec’s revenues for 2005 were approximately $3.5
million. This acquisition is expected to be immediately accretive
to our shareholders. MCTec is primarily involved in the coating
of
|
|