AngioDynamics Sells PICC and Midline Product Portfolios to Spectrum Vascular

February 15, 2024—AngioDynamics, Inc. announced that it has completed the sale of its peripherally inserted central catheter (PICC) and midline catheter portfolios to Spectrum Vascular, a medical device company focused on vascular access and medication management.

The transaction consists of AngioDynamics’ PICC, midline, and tip location products. This combined portfolio contributed approximately $43.5 million in annual sales during AngioDynamics’ fiscal year 2023, noted the company.

The transaction consideration of $45 million in cash includes $34.5 million paid at closing, an earnout related to sales of the divested products during the next 2 years of $5.5 million, and a milestone payment of $5 million paid upon final transfer of the manufacturing of the divested products to a third-party manufacturer.

The company also announced that it has discontinued the sale of its Uniblate and Starburst radiofrequency products, as well as its Syntrax support catheter products to further streamline its product portfolio. These products contributed approximately $5.5 million in annual sales during AngioDynamics’ fiscal year 2023.

According to AngioDynamics, the divestiture of the PICC and midline businesses, together with the discontinuance of the radiofrequency ablation and Syntrax businesses, will reduce full-year fiscal 2024 revenue by approximately $50 million. The company stated it expects that the divestiture of the PICC and midline businesses, together with the discontinued businesses, will be accretive to full-year fiscal 2024 gross margin.

In connection with these transactions, AngioDynamics will eliminate certain sales, marketing, and operational expenses. The transaction, inclusive of the restructuring, is expected to be slightly dilutive to fiscal 2024 adjusted earnings per share.

These divested and discontinued assets, along with those assets divested in June 2023 (see Endovascular Today News, “AngioDynamics Sells Dialysis Product Portfolio and BioSentry Product to Merit Medical”), will be accounted for as discontinued operations, removing their impact from the company’s fiscal 2024 results.

Updated fiscal 2024 financial guidance will be provided on the fiscal third quarter earnings call in early April, advised AngioDynamics.

“Today’s divestiture is another significant milestone in our transformation and supports our focus on driving increased penetration of our MedTech platforms in high-growth markets,” stated the company’s President and Chief Executive Officer Jim Clemmer in the press release. “It builds upon the divestiture of our Dialysis and Biosentry businesses that we announced in June as well as the plan we announced in January to streamline our manufacturing operations.

“This transaction, combined with the discontinuation of our radiofrequency ablation and Syntrax products, further strengthens our balance sheet, optimizes our product portfolio, and deepens our strategic focus on driving growth and profitability within our NanoKnife, mechanical thrombectomy, and Auryon businesses,” continued Clemmer. “The acquisition of our PICC and midline portfolios provides Spectrum Vascular with strong, well-recognized product lines and a skilled commercial team. We are pleased that Spectrum Vascular, a growing provider of vascular access products, is acquiring our PICC and midline portfolios and will continue to expand patient access to these industry-leading, high-quality medical devices.”