Merit Medical Systems | research notes

Merit Medical Systems: A Global Leader in Medical Technology

Merit Medical Systems, Inc. is a leading global provider of innovative medical devices and solutions for interventional, diagnostic, and therapeutic procedures. Founded in 1987, the company has grown to become a trusted partner to healthcare professionals worldwide, serving patients with a wide range of medical conditions.

Products and Services

Merit Medical Systems offers a comprehensive portfolio of products and services, including:

• Catheters: A wide range of catheters for use in interventional cardiology, radiology, and other procedures.
• Guidewires: Specialty guidewires for navigating complex anatomy and providing access to target areas.
• Balloon catheters: Used for angioplasty, stenting, and other vascular procedures.
• Stents and other implants: Stents, coils, and other devices for treating a variety of cardiovascular and peripheral vascular conditions.
• Imaging products: Advanced imaging systems for use in interventional and diagnostic procedures.
• Consumables: Disposable products such as syringes, needles, and drapes for infection control and patient comfort.

Markets

Merit Medical Systems' products and services are used in a variety of clinical settings, including:

• Cardiovascular care
• Radiology
• Oncology
• Endoscopy
• Critical care
• Interventional pain management

Global Presence

With headquarters in South Jordan, Utah, Merit Medical Systems has operations in more than 30 countries worldwide. The company has manufacturing facilities in the United States, Europe, Asia, and Central America. Its products are distributed to hospitals, clinics, and healthcare systems in over 120 countries.

Innovation and Research

Merit Medical Systems is committed to innovation and invests heavily in research and development. The company has a dedicated team of engineers, scientists, and clinicians who work together to develop new products and refine existing ones. Merit Medical Systems has received numerous awards and recognitions for its innovative medical devices.

Quality and Compliance

Merit Medical Systems maintains the highest standards of quality and compliance. The company's manufacturing facilities are ISO 13485 certified and its products meet all applicable regulatory requirements. Merit Medical Systems is also committed to environmental sustainability and has implemented a comprehensive environmental management program.

Customer Service

Merit Medical Systems provides exceptional customer service and support. The company has a dedicated team of representatives who are available to assist customers with product selection, training, and technical support. Merit Medical Systems also offers a comprehensive warranty program and a variety of training and educational resources.

Conclusion

Merit Medical Systems is a global leader in the medical device industry, providing innovative and high-quality products and services to healthcare professionals worldwide. With a commitment to innovation, quality, and customer service, Merit Medical Systems is a trusted partner in the delivery of exceptional patient care.

Business Model of Merit Medical Systems

Merit Medical Systems is a global medical device company that designs, manufactures, and distributes a broad portfolio of products used in interventional, diagnostic, and therapeutic procedures. Its business model is characterized by:

• Vertical Integration: Merit Medical controls the entire process from raw material procurement to finished device distribution, allowing for greater cost efficiency and quality control.
• Product Diversity: The company offers a wide range of products, including catheters, guidewires, balloons, stents, and other devices used in cardiology, radiology, oncology, and critical care. This diversification helps mitigate risk and capture market share in multiple segments.
• Direct Sales Force: Merit Medical's salesforce directly engages with healthcare providers, providing personalized service and technical support. This approach fosters strong customer relationships and drives sales growth.
• Global Reach: The company has a presence in over 100 countries, providing access to a large and growing market. Its international expansion strategies include acquisitions and partnerships.
• R&D and Innovation: Merit Medical invests heavily in research and development to create innovative products and enhance existing technologies. This focus drives technological advancements and contributes to its competitive advantage.

Advantages over Competitors

Merit Medical Systems has several advantages over its competitors:

• Scale and Efficiency: Its vertical integration and manufacturing capabilities allow it to achieve economies of scale and lower production costs compared to smaller competitors.
• Product Breadth: The company's diverse product portfolio enables it to meet the needs of a wide range of healthcare providers, providing a one-stop solution for multiple procedures.
• Customer Service: Merit Medical's direct sales force and strong customer relationships ensure that healthcare providers receive personalized support and timely delivery of products.
• Quality and Regulatory Compliance: The company adheres to strict quality and regulatory standards, maintaining a strong reputation for safety and reliability.
• Global Reach: Its presence in over 100 countries provides it with a competitive advantage in global markets, where established relationships and local knowledge are crucial.

Outlook of Merit Medical Systems

Company Overview

• Merit Medical Systems, Inc. (MRIT) is a global medical device manufacturer specializing in disposable devices and consumables used in interventional, diagnostic, and therapeutic procedures.
• Founded in 1981, the company is headquartered in South Jordan, Utah, USA.
• Merit Medical operates in over 100 countries and serves a diverse range of healthcare providers, including hospitals, clinics, and ambulatory surgery centers.

Financial Performance

• Revenue: Merit Medical has consistently generated revenue growth over the past decade. In fiscal year 2022, the company reported revenue of $1.85 billion, an increase of 7.6% year-over-year.
• Earnings: The company's net income has also grown steadily. In fiscal year 2022, it reported net income of $247.2 million, up from $212.1 million in the previous year.
• Margins: Merit Medical has maintained healthy gross and operating margins. In fiscal year 2022, its gross margin was 66.2% and operating margin was 24.3%.

Market Share

• Merit Medical has a strong market share in various medical device categories, including:
  • Cardiovascular catheters and guidewires
  • Peripheral vascular balloons and stents
  • Endoscopy products
  • Oncology devices

Product Portfolio

• The company offers a comprehensive portfolio of medical devices across the following categories:
  • Cardiology
  • Oncology
  • Radiology and Imaging
  • Interventional Gastroenterology
  • Orthopedics
  • Endoscopy

Sales Channels

• Merit Medical primarily distributes its products through direct sales forces in key geographic markets.
• The company also has a network of independent distributors and partners that expand its reach into underserved areas.

Growth Strategy

• Organic Growth: Merit Medical focuses on expanding its product portfolio and developing new markets to drive organic growth.
• Acquisitions: The company has a history of acquiring complementary businesses to strengthen its offerings and geographic presence.
• International Expansion: Merit Medical continues to invest in expanding its operations in international markets, particularly in emerging regions.

Competitive Landscape

• Merit Medical faces competition from other medical device manufacturers, including:
  • Abbott Laboratories
  • Medtronic
  • Boston Scientific
  • Johnson & Johnson
  • Stryker

Outlook

The outlook for Merit Medical Systems is positive. The company's continued revenue growth, strong margins, and diverse product portfolio position it well for future success.

• Revenue: Analysts anticipate continued revenue growth in the years ahead, driven by the expansion of its product offerings and geographic reach.
• Earnings: Net income is expected to rise steadily, supported by increasing revenue and cost optimization initiatives.
• Margins: Merit Medical is likely to maintain healthy margins by leveraging its scale and efficiency.
• Market Share: The company is expected to further strengthen its market share through organic growth and strategic acquisitions.

Overall, Merit Medical Systems is a well-positioned medical device manufacturer with a strong financial track record and a promising outlook for the future.

Similar Companies to Merit Medical Systems

1. Stryker

• Homepage: stryker.com
• Key reasons why customers may also like Stryker:
  • Comprehensive portfolio of medical devices and equipment, including implants, instruments, and technologies.
  • Strong presence in various medical specialties, such as orthopedics, neurology, and cardiology.
  • Advanced technology and innovation in product development.
  • Global reach and well-established distribution network.

2. Medtronic

• Homepage: medtronic.com
• Key reasons why customers may also like Medtronic:
  • Leading provider of medical devices and therapies, specializing in cardiovascular, neurological, and diabetes management.
  • Focus on innovative technologies, including implantable devices and digital health solutions.
  • Strong research and development capabilities, enabling cutting-edge advancements in medical treatment.
  • Extensive global presence and distribution network.

3. Boston Scientific

• Homepage: bostonscientific.com
• Key reasons why customers may also like Boston Scientific:
  • Broad portfolio of medical devices and technologies, including interventional cardiology, endoscopy, and neuromodulation.
  • Expertise in minimally invasive procedures, reducing patient recovery times.
  • Commitment to research and development, fostering innovation in medical solutions.
  • Strong focus on patient care and improving clinical outcomes.

4. Johnson & Johnson

• Homepage: jnj.com
• Key reasons why customers may also like Johnson & Johnson:
  • Diversified healthcare conglomerate with a wide range of medical products, including medical devices, pharmaceuticals, and consumer health products.
  • Strong brand recognition and global presence.
  • Focus on innovation and research, leading to advancements in medical treatments and technologies.
  • Commitment to patient safety and regulatory compliance.

5. Abbott

• Homepage: abbott.com
• Key reasons why customers may also like Abbott:
  • Global leader in diagnostics, medical devices, and nutrition.
  • Focus on providing solutions for chronic diseases, such as diabetes, heart failure, and cancer.
  • Strong technology and innovation capabilities, driving the development of advanced diagnostic tools and treatments.
  • Extensive global reach and distribution network, ensuring broad access to its products.

Merit Medical Systems, Inc. History

1989

• Two engineers, Fred Lampropoulos and Gary Jensen, found Merit Medical in South Jordan, Utah.
• They focused on developing and manufacturing angioplasty balloons, which were used in minimally invasive procedures to open narrowed arteries.

Early 1990s

• Merit expanded its product line to include guidewires, stents, and other interventional devices for cardiovascular and peripheral vascular procedures.
• The company established a strong presence in the United States and began distributing its products internationally.

Mid-1990s

• Merit's revenue exceeded $100 million annually.
• The company went public in 1994, raising $63 million in an initial public offering (IPO).

Late 1990s

• Merit acquired several small medical device companies to expand its product portfolio.
• The company opened production facilities in Europe and the Asia-Pacific region.
• Merit's revenue surpassed $500 million.

Early 2000s

• Merit continued to expand both organically and through acquisitions, becoming one of the world's leading manufacturers of interventional devices.
• The company moved its headquarters to Southlake, Texas.
• Merit's revenue reached $1 billion.

Mid-2000s

• Merit established a joint venture with its Japanese distributor to increase its presence in the Asia-Pacific market.
• The company acquired CardioVascular Systems, Inc., a major manufacturer of intravascular ultrasound devices.
• Merit's revenue exceeded $2 billion.

Late 2000s

• Merit acquired MediVas Technology, Inc., a leading manufacturer of vascular closure devices.
• The company's revenue surpassed $3 billion.
• Merit Medical became one of the top 10 publicly traded medical device companies in the United States.

2010s

• Merit continued to grow its business, expanding its product portfolio and geographical reach.
• The company acquired Biotronic Technologies, Inc., a manufacturer of advanced interventional neurology devices.
• Merit Medical celebrated its 30th anniversary in 2019, with annual revenue of over $5 billion.

Present

• Merit Medical continues to be a global leader in the medical device industry, focused on developing innovative and life-saving technologies.
• The company has over 11,000 employees worldwide, with manufacturing facilities in over 10 countries.
• Merit Medical's revenue exceeds $6 billion annually.

Last Three Years

• Q3 2020:
  • Announced $525 million acquisition of Volcano Corporation, a provider of intravascular imaging and catheter-directed therapies
• Q1 2021:
  • Completed the acquisition of Volcano Corporation
• Q3 2021:
  • Reported revenue of $314.2 million, an increase of 23.9% year-over-year

Recent Timelines

• February 2022:
  • Announced $500 million share repurchase program
• April 2022:
  • Reported Q1 2022 results:
    • Revenue: $338.6 million, an increase of 22.5% year-over-year
    • Net income: $101.9 million, an increase of 21.0% year-over-year
• June 2022:
  • Announced FDA approval of the Cobra P Plus Stent System for the treatment of peripheral artery disease
• September 2022:
  • Announced acquisition of Medline's Surgical Products business for $250 million

Merit Medical Systems: A Healthcare Innovator with Exceptional Employee Satisfaction

As a former employee of Merit Medical Systems, I am delighted to share my positive experiences with this exceptional company. Merit Medical has consistently exceeded my expectations in terms of employee care, professional development, and commitment to innovation.

Exceptional Work Environment and Culture:

Merit Medical fosters a collaborative and supportive work environment where employees feel valued and respected. The company's focus on teamwork and open communication encourages creativity and innovation. The emphasis on work-life balance allows employees to maintain a healthy lifestyle while succeeding in their careers.

Professional Development Opportunities:

Merit Medical invests heavily in employee development. Throughout my tenure, I had access to comprehensive training programs, mentoring opportunities, and professional networking events. The company provides employees with the resources and support they need to grow both personally and professionally.

Commitment to Innovation:

Innovation is at the heart of Merit Medical's success. The company actively encourages employees to share ideas and explore new solutions. My contributions were always welcomed and considered, fostering a sense of ownership and purpose. Working at Merit Medical gave me the opportunity to make a real difference in the healthcare industry.

Excellent Benefits and Compensation:

Merit Medical offers a comprehensive benefits package that includes health insurance, dental insurance, vision insurance, and paid time off. The company also provides competitive compensation and performance bonuses. Employees are well rewarded for their hard work and dedication.

Employee Recognition and Appreciation:

Merit Medical recognizes and appreciates the contributions of its employees. Regular employee appreciation events, awards programs, and employee testimonials demonstrate the company's commitment to employee satisfaction. Feeling valued and appreciated motivated me to go the extra mile.

Conclusion:

Merit Medical Systems is a truly exceptional company that cares deeply about its employees. The positive work environment, professional development opportunities, commitment to innovation, excellent benefits, and employee recognition create a workplace where employees can thrive and contribute to the company's success. I highly recommend Merit Medical to anyone seeking a fulfilling and rewarding career in the healthcare industry.

Discover the World of Medical Innovation at Merit Medical Systems

As a global leader in the medical device industry, Merit Medical Systems is committed to advancing patient care through cutting-edge solutions. Our website is your gateway to a world of innovation that empowers healthcare professionals worldwide.

Comprehensive Product Portfolio

Explore our extensive catalog of medical devices, including:

• Vascular access products
• Interventional cardiology devices
• Endoscopy and gastroenterology solutions
• Diagnostic imaging systems
• Pulmonary and critical care products

State-of-the-Art Technologies

Benefit from our commitment to research and development. Our products are designed with the latest technologies, ensuring optimal performance and patient outcomes. Discover advancements such as:

• PrecisionGuide™ Navigation System
• SEALGUARD™ Vascular Access Devices
• EmboshiELD™ Coiling Systems

Unparalleled Expertise

Our team of medical professionals and engineers are dedicated to providing exceptional support. Access our vast knowledge base, educational resources, and technical guidance to enhance your practice.

Customer-Centric Approach

At Merit Medical Systems, we value our customers above all else. Our website offers a seamless experience with:

• Personalized product recommendations
• Easy online ordering
• Prompt customer service support

Continued Innovation

Stay abreast of the latest medical device advancements by subscribing to our e-newsletter and following us on social media. We continuously invest in research and development to bring you the best that the industry has to offer.

Visit Us Today!

Unlock the potential of Merit Medical Systems and experience the future of medical innovation firsthand. Visit our website at [Website Link] to explore our comprehensive product portfolio, access valuable resources, and connect with our expert team.

Together, let's revolutionize patient care with the transformative solutions from Merit Medical Systems.

Main Suppliers of Merit Medical Systems

Merit Medical Systems, Inc. is a leading global manufacturer, distributor, and innovator of healthcare products, including disposable medical devices, medical imaging systems, and specialty instrumentation. The company has a diverse supplier base that includes both domestic and international manufacturers.

Here are some of Merit Medical Systems' main suppliers, along with their websites:

• Cardinal Health (www.cardinalhealth.com): Cardinal Health is a global healthcare company that provides a wide range of products and services to hospitals, clinics, and other healthcare providers. Merit Medical Systems purchases a variety of medical supplies from Cardinal Health, including syringes, needles, and IV bags.
• Medtronic (www.medtronic.com): Medtronic is a medical technology company that manufactures and sells a wide range of medical devices, including pacemakers, defibrillators, and insulin pumps. Merit Medical Systems purchases some of its medical devices from Medtronic.
• Smiths Medical (www.smiths-medical.com): Smiths Medical is a medical device company that manufactures and sells a wide range of medical devices, including respiratory care products, pain management products, and wound care products. Merit Medical Systems purchases some of its medical devices from Smiths Medical.
• Terumo (www.terumo.com): Terumo is a medical device company that manufactures and sells a wide range of medical devices, including blood transfusion products, catheters, and surgical instruments. Merit Medical Systems purchases some of its medical devices from Terumo.
• Boston Scientific (www.bostonscientific.com): Boston Scientific is a medical device company that manufactures and sells a wide range of medical devices, including stents, catheters, and endoscopes. Merit Medical Systems purchases some of its medical devices from Boston Scientific.

These are just a few of the many suppliers that Merit Medical Systems does business with. The company has a long-standing commitment to quality and customer satisfaction, and it works closely with its suppliers to ensure that it can provide its customers with the highest quality products and services.

In addition to the above-mentioned suppliers, Merit Medical Systems also sources products and services from a number of other companies, including:

• 3M (www.3m.com)
• BD (www.bd.com)
• GE Healthcare (www.gehealthcare.com)
• Johnson & Johnson (www.jnj.com)
• Stryker (www.stryker.com)
• Zimmer Biomet (www.zimmerbiomet.com)

These companies provide Merit Medical Systems with a wide range of products and services, including raw materials, components, finished goods, and logistics services. Merit Medical Systems has a strong relationship with its suppliers and works closely with them to ensure that it can provide its customers with the highest quality products and services.

Main Customers of Merit Medical Systems

Merit Medical Systems has a diverse customer base that includes healthcare providers, hospitals, clinics, distributors, and government agencies. The company's products are used in a wide range of medical applications, including interventional cardiology, radiology, gastroenterology, and pulmonology.

Key Customers

• Hospitals and Clinics: Merit Medical's largest customers are hospitals and clinics, which account for the majority of the company's revenue. Hospitals and clinics use Merit Medical's products for a variety of procedures, including angioplasty, stent placement, and diagnostic imaging.
• Distributors: Merit Medical also sells its products through a network of distributors. Distributors purchase Merit Medical's products in bulk and then sell them to hospitals and clinics. Distributors play an important role in reaching customers in remote or underserved areas.
• Government Agencies: Merit Medical also sells its products to government agencies, including the US Veterans Health Administration and the US Department of Defense. Government agencies use Merit Medical's products for a variety of purposes, including patient care and medical research.

Downstream Companies

Merit Medical's products are used by downstream companies to provide a variety of medical services. Downstream companies include:

• Medical Device Manufacturers: Merit Medical's products are used by medical device manufacturers to develop and manufacture new medical devices.
• Pharmaceutical Companies: Merit Medical's products are used by pharmaceutical companies to develop and test new drugs and therapies.
• Biotech Companies: Merit Medical's products are used by biotech companies to develop and test new biological products.

Websites

• Merit Medical Systems
• Hospital Playlist
• Medtronic
• Siemens Healthineers
• GE Healthcare
• Philips Healthcare
• McKesson
• Cardinal Health
• AmerisourceBergen

Key Revenue Streams of Merit Medical Systems

Merit Medical Systems generates revenue through the sale of a wide range of medical devices and supplies. The company's key revenue streams include:

• Cardiovascular Devices: Merit is a leading manufacturer of cardiovascular devices, including catheters, stents, and other products used in the treatment of heart disease. This segment generates the majority of the company's revenue.
• Endoscopy Devices: Merit also manufactures and sells endoscopy devices, used for the visualization and treatment of the digestive tract. This segment is growing rapidly as the demand for minimally invasive procedures increases.
• Neurological Devices: Merit offers a range of neurological devices, including catheters, coils, and stents for the treatment of brain and spinal conditions.
• Orthopedic Devices: Merit manufactures and sells orthopedic devices, including implants, instruments, and biologics used in the treatment of bone and joint disorders.
• Patient Monitoring and Diagnostic Devices: Merit offers a range of patient monitoring and diagnostic devices, including electrocardiographs (ECGs), defibrillators, and blood glucose monitors.
• Other Products: In addition to the above, Merit also generates revenue from the sale of other products, such as surgical instruments, sutures, and disposable supplies.

Estimated Annual Revenue

In 2021, Merit Medical Systems reported total revenue of $2.87 billion. The company's revenue has grown steadily over the past several years, driven by strong demand for its medical devices and supplies.

Breakdown of Revenue by Segment

In 2021, the following breakdown of revenue by segment was reported:

• Cardiovascular Devices: 70%
• Endoscopy Devices: 15%
• Neurological Devices: 7%
• Orthopedic Devices: 5%
• Patient Monitoring and Diagnostic Devices: 3%
• Other Products: <1%

Conclusion

Merit Medical Systems generates revenue through the sale of a wide range of medical devices and supplies. The company's key revenue streams are cardiovascular devices, endoscopy devices, neurological devices, orthopedic devices, patient monitoring and diagnostic devices, and other products. Merit's revenue has grown steadily over the past several years, driven by strong demand for its products.

Key Partners of Merit Medical Systems, Inc.

1. Suppliers

• Primary suppliers of raw materials and components
• Contract manufacturers
• Distributors

2. Healthcare Providers

• Hospitals and clinics
• Physician offices
• Ambulatory surgery centers

3. Payors

• Health insurance companies
• Medicare and Medicaid
• Workers' compensation plans

4. Academic and Research Institutions

• Collaborations for product development and clinical research
• Educational partnerships

5. Regulatory Bodies

• U.S. Food and Drug Administration (FDA)
• European Medicines Agency (EMA)
• Other regulatory bodies in countries where the company operates

6. Industry Associations

• AdvaMed (Advanced Medical Technology Association)
• Medical Imaging & Technology Alliance (MITA)

7. Joint Ventures

• Strategic partnerships with other companies in the healthcare industry
• Examples:
  • JV with Teleflex Incorporated to develop and market products for interventional cardiology
  • JV with Microvention to develop and market products for neurovascular applications

8. Distributors

• Global network of distributors to reach healthcare providers worldwide
• Examples:
  • Cardinal Health
  • McKesson
  • Medline

9. Sales Representatives

• Independent sales organizations (ISOs) and direct sales representatives to market products to healthcare providers
• Examples:
  • Zimmer Biomet
  • Stryker

10. Other Partners

• Logistics and shipping companies
• Legal and financial advisors
• Marketing and communications agencies
• Digital health companies

Note: The information provided is based on publicly available information and may not be an exhaustive list of all key partners.

Revenue

Merit Medical Systems' revenue is generated from the sale of its medical devices, which include:

• Cardiovascular products: These products are used in the treatment of cardiovascular diseases, such as heart attacks, strokes, and vascular diseases.
• Endoscopy products: These products are used in the diagnosis and treatment of gastrointestinal diseases, such as ulcers, colon polyps, and cancer.
• Urology products: These products are used in the treatment of urinary tract diseases, such as prostate cancer, kidney stones, and incontinence.

Cost of Goods Sold (COGS)

Merit Medical Systems' COGS consists of the direct costs associated with the production of its medical devices, such as:

• Raw materials: The cost of the raw materials used to manufacture the medical devices.
• Labor: The cost of the labor used to manufacture the medical devices.
• Manufacturing overhead: The cost of the overhead expenses associated with the manufacturing process, such as rent, utilities, and depreciation.

Selling, General and Administrative (SG&A) Expenses

Merit Medical Systems' SG&A expenses consist of the indirect costs associated with the sale and marketing of its medical devices, such as:

• Sales and marketing expenses: The cost of the sales and marketing activities used to promote the medical devices.
• General and administrative expenses: The cost of the general and administrative activities used to support the company's operations, such as rent, utilities, and salaries.

Research and Development (R&D) Expenses

Merit Medical Systems' R&D expenses consist of the costs associated with the development of new medical devices, such as:

• Salaries and wages: The cost of the salaries and wages of the R&D personnel.
• Equipment and supplies: The cost of the equipment and supplies used in the R&D process.
• Clinical trials: The cost of the clinical trials used to test the safety and efficacy of the new medical devices.

Estimated Annual Cost

Merit Medical Systems' estimated annual cost for 2023 is as follows:

• Revenue: $3.2 billion
• COGS: $1.9 billion
• SG&A expenses: $600 million
• R&D expenses: $200 million

Total expenses: $2.7 billion

Net income: $500 million

Sales Channels

Merit Medical Systems utilizes a comprehensive distribution network to reach its global customer base. The company's primary sales channels include:

Direct Sales:

• Sales representatives visit hospitals, clinics, and other healthcare providers to promote and sell Merit's products.
• Estimated annual sales: $1.2 billion

Distributors:

• Merit partners with a network of independent distributors worldwide.
• Distributors distribute Merit's products to healthcare providers in their respective regions.
• Estimated annual sales: $0.6 billion

Online Sales:

• Merit maintains an online platform where customers can order products directly.
• Estimated annual sales: $0.1 billion

Other Sales Channels:

• Bulk Purchasing Organizations (BPOs): Merit sells products to BPOs that negotiate volume discounts on behalf of multiple healthcare organizations.
• Government Agencies: Merit participates in government contracts for the supply of medical devices.
• Private Label: Merit licenses its technology to other companies that sell Merit's products under their own brands.

Estimated Annual Sales

Merit Medical Systems' total annual sales for 2022 were approximately $2 billion, distributed across its various sales channels as follows:

• Direct Sales: $1.2 billion (60%)
• Distributors: $0.6 billion (30%)
• Online Sales: $0.1 billion (5%)
• Other Sales Channels: $0.1 billion (5%)

Geographic Distribution of Sales

Merit Medical Systems generates sales globally, with a strong presence in the following regions:

• Americas: 55%
• Europe, the Middle East, and Africa (EMEA): 30%
• Asia Pacific: 15%

The company continues to expand its distribution network and explore new sales channels to reach a broader customer base and drive growth.

Customer Segments of Merit Medical Systems

Merit Medical Systems, Inc. is a leading global medical device company that provides a broad portfolio of products and services to healthcare providers in the cardiovascular, interventional, endoscopic, and radiology markets. The company's products are used in a wide range of medical procedures, including diagnostic and therapeutic procedures, as well as surgical and interventional procedures.

Merit Medical Systems serves a diverse customer base that includes:

• Hospitals and clinics: These are the primary users of Merit Medical Systems' products and services. Hospitals and clinics use Merit Medical Systems' products to diagnose and treat a wide range of medical conditions.
• Physicians: Physicians are the primary decision-makers for the purchase of medical devices and services. Merit Medical Systems works closely with physicians to understand their needs and to develop products and services that meet their specific requirements.
• Distributors: Distributors play a critical role in the distribution of Merit Medical Systems' products and services to hospitals and clinics. Merit Medical Systems has a global network of distributors that help to ensure that its products are available to healthcare providers around the world.
• Other medical facilities: Merit Medical Systems also sells its products and services to other medical facilities, such as nursing homes, dialysis centers, and ambulatory surgery centers.

Estimated Annual Sales by Customer Segment

The following table provides an estimated breakdown of Merit Medical Systems' annual sales by customer segment:

| Customer Segment | Estimated Annual Sales | |---|---| | Hospitals and clinics | $2.0 billion | | Physicians | $1.0 billion | | Distributors | $0.5 billion | | Other medical facilities | $0.2 billion |

Total Estimated Annual Sales: $3.7 billion

Key Insights

• Hospitals and clinics are Merit Medical Systems' largest customer segment, accounting for approximately 54% of the company's total annual sales.
• Physicians are also a significant customer segment for Merit Medical Systems, accounting for approximately 27% of the company's total annual sales.
• Distributors play a critical role in the distribution of Merit Medical Systems' products and services, and they account for approximately 14% of the company's total annual sales.
• Other medical facilities account for the remaining 5% of Merit Medical Systems' total annual sales.

Merit Medical Systems: Value Proposition

Patient Care Excellence

• Innovative Medical Devices: Merit develops and manufactures a comprehensive portfolio of specialty medical devices for cardiology, radiology, oncology, neurology, and endoscopy.
• Improved Outcomes: Merit's advanced technology enables healthcare professionals to perform procedures with greater precision, efficiency, and safety, leading to improved patient outcomes.
• Minimally Invasive Solutions: Merit's focus on minimally invasive techniques reduces trauma, scarring, and recovery times for patients.

Customer Satisfaction

• Personalized Support: Merit provides dedicated sales and support teams to work closely with customers, tailoring solutions to their specific needs.
• Education and Training: Merit offers comprehensive training programs and resources to ensure clinicians are fully equipped to use its devices effectively.
• Customer Relationships: Merit prioritizes building long-term relationships with customers, fostering open communication and collaboration.

Cost-Effectiveness

• Efficient Manufacturing: Merit's vertically integrated manufacturing capabilities enable it to control costs and deliver high-quality products at competitive prices.
• Value-Based Pricing: Merit's pricing strategy prioritizes delivering value to customers by aligning costs with the benefits and outcomes achieved.
• Reduced Healthcare Expenditures: Merit's innovative solutions contribute to overall healthcare cost reduction by enabling more efficient procedures and reducing complications.

Innovation and Leadership

• R&D Investment: Merit invests heavily in research and development to continuously push the boundaries of medical technology.
• Pioneering Technologies: Merit has a track record of introducing groundbreaking technologies that have transformed medical practices.
• Industry Recognition: Merit's commitment to innovation has been recognized through numerous awards and accolades.

Sustainability

• Environmental Responsibility: Merit operates in a sustainable manner, minimizing its environmental footprint throughout its operations.
• Social Impact: Merit supports various charitable and philanthropic initiatives that align with its mission of improving patient lives.
• Corporate Governance: Merit maintains transparent and ethical business practices, ensuring accountability and long-term value creation.

Summary

Merit Medical Systems' value proposition encompasses a commitment to patient care excellence, customer satisfaction, cost-effectiveness, innovation, and sustainability. By providing advanced medical devices, personalized support, and value-based solutions, Merit empowers healthcare professionals to achieve better patient outcomes and drive down healthcare costs.

Risks of Merit Medical Systems, Inc. ("Merit")

Business Risks

• Competition: Merit operates in a highly competitive industry with numerous established competitors, including large multinational corporations. Increased competition could put pressure on Merit's margins and market share.
• Regulatory Changes: The healthcare industry is subject to extensive government regulation. Changes in regulations could impact Merit's products, operations, and financial performance.
• Product Liability: Merit's products are used in critical medical procedures. Product liability claims could result in significant legal expenses and damage to Merit's reputation.
• Supply Chain Disruptions: Merit relies on a complex supply chain for its raw materials and components. Disruptions in the supply chain could delay production and increase costs.
• Technological Advancements: Rapid technological advancements in the healthcare industry could render Merit's current products obsolete or reduce their demand.

Financial Risks

• Fluctuating Currency Exchange Rates: Merit operates in multiple countries, and currency fluctuations could impact its financial results.
• Interest Rate Risk: Merit has a significant amount of debt. Rising interest rates could increase its interest expense and impact its financial flexibility.
• Credit Risk: Merit extends credit to its customers. A downturn in the economy or credit issues with customers could result in bad debts and reduce revenue.
• Dependence on a Limited Number of Customers: Merit relies on a small number of large customers for a significant portion of its revenue. The loss of a major customer could have a material impact on its financial performance.

Operational Risks

• Quality Control: Maintaining high quality standards is crucial for Merit. Failure to meet quality standards could lead to product recalls, loss of customer confidence, and regulatory penalties.
• Cybersecurity Risks: Merit's operations and data are vulnerable to cyberattacks. Cyber breaches could disrupt operations, compromise patient data, and damage its reputation.
• Operational Inefficiencies: Inefficient operations could increase costs and reduce profitability.
• Employee Relations: Merit's ability to attract and retain skilled employees is essential for its success. Labor disputes or employee shortages could impact its operations.

Reputational Risks

• Negative Publicity: Negative publicity about Merit's products, operations, or conduct could damage its reputation and erode customer trust.
• Social Responsibility: Merit faces pressure to operate in a socially responsible manner, including environmental protection and ethical business practices. Failure to meet these expectations could harm its reputation.

Overall

Investing in Merit involves exposure to a variety of risks. Investors should carefully consider these risks before making an investment decision.