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Surmodics (SRDX)

Surmodics is the global leader in surface modification technologies for intravascular medical devices and a leading provider of chemical components for in vitro diagnostic (IVD) immunoassay tests and microarrays. Surmodics is pursuing highly differentiated medical devices that are designed to address unmet clinical needs and engineered to the most demanding requirements. This key growth strategy leverages the combination of the Company's expertise in proprietary surface technologies, along with enhanced device design, development, and manufacturing capabilities. The Company mission remains to improve the detection and treatment of disease. Surmodics is headquartered in Eden Prairie, Minnesota. For more information, visit www.surmodics.com. The content of Surmodics' website is not part of this press release or part of any filings that the company makes with the SEC.

Company profile

Ticker
SRDX
Exchange
CEO
Gary Maharaj
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Surmodics IVD, Inc. • NorMedix, Inc. • Creagh Medical Limited • SurModics MD, LLC • Surmodics MD Operations, LLC • Surmodics Coatings, LLC • Surmodics Coatings Mfg, LLC • Surmodics Holdings, LLC • Surmodics Shared Services, LLC • Vetex Medical Limited ...
IRS number
411356149

SRDX stock data

Calendar

27 Jul 22
16 Aug 22
30 Sep 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Sep 21 Sep 20 Sep 19 Sep 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 20.07M 20.07M 20.07M 20.07M 20.07M 20.07M
Cash burn (monthly) 1.55M 3.51M 2.39M 1.36M 1.17M 1.15M
Cash used (since last report) 2.43M 5.51M 3.76M 2.13M 1.83M 1.81M
Cash remaining 17.64M 14.56M 16.31M 17.94M 18.24M 18.26M
Runway (months of cash) 11.4 4.2 6.8 13.2 15.6 15.8

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
19 Jul 22 Stich Joseph J. Common Stock Payment of exercise Dispose F No No 36.73 15,386 565.13K 50,596
19 Jul 22 Stich Joseph J. Common Stock Option exercise Acquire M No No 20.25 19,927 403.52K 65,766
19 Jul 22 Stich Joseph J. Employee Stock Option Common Stock Option exercise Dispose M No No 20.25 19,927 403.52K 0
30 Jun 22 Kalich Ronald B SR Common Stock Grant Acquire A No No 37.23 480 17.87K 27,959
13 May 22 Arens Timothy J. Common Stock Payment of exercise Dispose F No No 35.91 151 5.42K 64,444
12 May 22 Gordon S. Weber Common Stock Payment of exercise Dispose F No No 34.33 339 11.64K 11,142
1 Apr 22 Maharaj Gary R Common Stock Sell Dispose S No Yes 45.55 100 4.56K 155,041
1 Apr 22 Maharaj Gary R Common Stock Sell Dispose S No Yes 44.9742 3,900 175.4K 155,141
13.9% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 136 148 -8.1%
Opened positions 9 15 -40.0%
Closed positions 21 19 +10.5%
Increased positions 41 38 +7.9%
Reduced positions 56 60 -6.7%
13F shares Current Prev Q Change
Total value 633.74M 962.49M -34.2%
Total shares 13.97M 13.83M +1.0%
Total puts 4.5K 0 NEW
Total calls 0 5K EXIT
Total put/call ratio Infinity
Largest owners Shares Value Change
BLK Blackrock 2.28M $103.57M +0.8%
Trigran Investments 2.14M $96.82M +6.4%
Vanguard 930.84K $42.2M +2.6%
Renaissance Technologies 685.5K $31.07M -4.7%
Trigran Investments 639.63K $27.84M 0.0%
Wellington Management 591.53K $26.81M -5.3%
WELLINGTON TRUST Co N A 589.71K $28.4M 0.0%
Soleus Capital Management 558.44K $25.31M +4.8%
STT State Street 510.78K $23.15M +0.0%
Dimensional Fund Advisors 460.01K $20.85M +0.1%
Largest transactions Shares Bought/sold Change
Millennium Management 192.33K +130.49K +211.0%
Trigran Investments 2.14M +128.68K +6.4%
Segall Bryant & Hamill 283.21K +121.61K +75.3%
FMR 69.76K +69.76K NEW
Geode Capital Management 242.22K -63.21K -20.7%
Acadian Asset Management 290.07K -38.79K -11.8%
Renaissance Technologies 685.5K -34.14K -4.7%
GS Goldman Sachs 105.74K -33.81K -24.2%
Wellington Management 591.53K -33.4K -5.3%
Soleus Capital Management 558.44K +25.68K +4.8%

Financial report summary

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Risks
  • The long-term success of our business may suffer if we are unable to expand our licensing base.
  • Our success depends on our ability to effectively develop and market our products against those of our competitors.
  • We anticipate that increases in operating expenses related to the development and commercialization of new technologies and products will have an adverse impact on our near-term operating results and financial position, and they may not be effective.
  • Failure to successfully integrate the acquisition of Vetex Medical Limited or commercialize its product may limit our growth and adversely impact operating results, cash flows and liquidity.
  • Our failure to expand our management systems and controls to support anticipated growth or integrate acquisitions could seriously harm our operating results and business.
  • Goodwill or other assets on our balance sheet may become impaired, which could have a material adverse effect on our operating results.
  • We recognize revenue in accordance with complex accounting standards, and changes in circumstances or interpretations may lead to accounting adjustments and failure to implement these standards might impact the effectiveness of our internal control over financial reporting or impact the reliability of our financial reporting.
  • A portion of our IVD business relies on distribution agreements and relationships with various third parties, and any adverse change in those relationships could result in a loss of revenue and harm that business.
  • We rely on our customers to accurately report and make payments under our agreements with them.
  • We currently have limited or no redundancy in our manufacturing facilities for certain products, and we may lose revenue and be unable to maintain our customer relationships if we lose our production capacity.
  • Our revenue will be harmed if we experience disruptions in our supply chain.
  • We depend upon key personnel and may not be able to attract or retain qualified personnel in the future.
  • Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.
  • We may become involved in expensive and unpredictable patent litigation or other intellectual property proceedings which could result in liability for damages or impair our development and commercialization efforts.
  • If we are unable to keep our trade secrets confidential, our technology and proprietary information may be used by others to compete against us.
  • If we are unable to convince our customers to adopt our advanced generation of hydrophilic coating technologies, our royalty revenue may decrease, and the expiration of the patent family protecting this technology has and will continue to result in a reduction of the royalty revenue associated with existing license agreements.
  • If we or any of our licensees breach any of the agreements under which we have in-licensed intellectual property from others, we could be deprived of important intellectual property rights and future revenue.
  • We cannot be sure that clinical studies of our products will be successful, or that their results will be adequate to obtain or maintain regulatory approvals.
  • Healthcare policy changes may have a material adverse effect on us.
  • Vascular intervention medical devices and other products incorporating our technologies are subject to increasing scrutiny and regulations, including extensive approval/clearance processes and manufacturing requirements. Any adverse regulatory and/or enforcement action (for us or our licensees) may materially affect our financial condition and business operations.
  • The recently effective European Union Medical Devices Regulation may increase our operating costs and adversely impact our business.
  • We may face liability if we mishandle or improperly dispose of the hazardous materials used in some of our research, development and manufacturing processes.
Management Discussion
  • ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
  • Surmodics, Inc. and subsidiaries (referred to as “Surmodics,” the “Company,” “we,” “us,” “our” and other like terms) is a leading provider of surface modification technologies for intravascular medical devices and chemical components for in vitro diagnostic (“IVD”) immunoassay tests and microarrays. Surmodics is pursuing development and commercialization of highly differentiated medical devices that are designed to address unmet clinical needs and engineered to the most demanding requirements. This key growth strategy leverages the combination of the Company’s expertise in proprietary surface technologies, along with enhanced device design, development, and manufacturing capabilities. The Company mission remains to improve the detection and treatment of disease.
  • On July 2, 2021, Surmodics completed the acquisition of all outstanding shares of Vetex Medical Limited (“Vetex”). Vetex, which was formerly privately held and is based in Galway, Ireland, develops and manufactures medical devices focused on venous clot removal solutions. Surmodics acquired Vetex with an upfront cash payment of $39.9 million funded using cash on hand and $10 million from the Company’s $25 million revolving credit facility. Additional payments of up to $7 million, $3.5 million of which are guaranteed, may be made upon achievement of certain product development and regulatory milestones.

Content analysis

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H.S. freshman Avg
New words: capacity, hospital, implementation, packaging, pressure, ramp, regional, software, solid
Removed: demand, exclude, experience, full, initiate, matrix, preliminary, recover, reflect, relate, resurgence, SundanceTM, supporting, validation, verification