US Surgical reports sales growth and acquisition plan
This article was originally published in Clinica
US Surgical saw sales growth of 9% to $1.1 billion and a 38% increase in net income in 1996. The company says gross margins increased to 59% of sales for the full year, an improvement of 3% over the previous year.
US Surgical's 1996 results ($ millions) 4th qtr % change 1996 % change Sales 283.1 8% 1,112.7 9% R&D spending 17.9 77% 58.0 35% Net income 31.8 60% 109.1 38% (ended Dec 31st)
The company has also purchased an exclusive option to acquire Progressive Angioplasty Systems (PAS). Under the agreement, US Surgical will buy 12.5% of PAS for $15 million and will have six months to exercise its right to purchase the rest of the company. If exercised, the purchase price would be $75 million, with a potential additional $75 million if certain milestones are met. PAS has a coronary stent made from martensitic nitinol in clinical trials in the US and has marketing approval in Europe.