ANGO Stock Drops 16% Following $46 Million USD Eximo Acquisition

ANGO stock

ANGO stock is down 16% today after MedDev company AngioDynamics Inc (NSADAQ:ANGO) agreed to acquire Eximo Medical for $46 million USD.

The New York medical devices company has announced that it will acquire Israeli startup Eximo Medical Ltd, which develops a laser technology catheter device used for the treatment of occlusive peripheral arterial disease (PAD). The deal will see AngioDynamics pay $46 million USD upfront with an additional $20 million USD contingency depending on achieving certain milestones. Eximo’s technology was clinically tested in Poland and is already being used on patients in the US; however, ANGO stock is trading well in the red following the announcement.

“The acquisition of Eximo brings a remarkable, foundational technology to our portfolio that will change the way caregivers deliver treatment to patients with PAD,” said Jim Clemmer, President and Chief Executive Officer of AngioDynamics, Inc. “The market is ripe for disruption, and the level of precision, safety, and efficiency offered to physicians by this laser technology creates a substantially differentiated alternative to legacy atherectomy devices.” ANGO stock is currently valued at $14.79 during Thursday trading.

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AngioDynamics also released its fiscal 2020 Q1 results today, which included some positive highlights; however, the company did cut its earnings outlook to $0.10–$0.15, compared $0.25–$o.30, in order to cover the costs of the Eximo acquisition, which is probably the driving factor in the drop in ANGO stock today. The company reported a net loss increase of 172% to $1.3 million USD, while sales grew 3.3% to $66 million USD for the quarter ended August 31. Adjusted earnings per share were $0.08, which beat Wall Street expectations by $0.04.

ANGO stock made some positive gains back in June after the company closed the sale of its NAMIC fluid management business for $168 million USD to Medline Industries. Speaking on that sale in today’s earnings call, Clemmer said, “the divestiture of [Namic] allowed us to begin the year with a strong balance sheet, enabling strategic acquisitions like Eximo Medical.” Despite this, ANGO shares are down over 40% from an April peak of $25.

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Featured Image: DepositPhotos © InnaSidorova

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