AngioDynamics Announces Sale Of PICC And Midline Product Portfolios To Spectrum Vascular For $45M
Portfolio Pulse from Benzinga Newsdesk
AngioDynamics, Inc. (ANGO) has sold its PICC and Midline product portfolios to Spectrum Vascular for up to $45 million in cash. This sale is part of AngioDynamics' strategy to optimize its product portfolio and focus on high-growth markets. The divested products contributed approximately $43.5 million in annual sales. Additionally, AngioDynamics has discontinued its radiofrequency ablation and Syntrax products, which contributed about $5.5 million in annual sales. The company expects the divestiture and discontinuations to be accretive to fiscal 2024 gross margin but slightly dilutive to adjusted earnings per share. AngioDynamics will provide updated fiscal 2024 guidance in its upcoming earnings call.
February 15, 2024 | 9:30 pm
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AngioDynamics has sold its PICC and Midline portfolios to Spectrum Vascular for up to $45 million, aiming to optimize its product portfolio and focus on high-growth markets. The divestiture and discontinuation of certain products are expected to be accretive to fiscal 2024 gross margin but slightly dilutive to adjusted EPS.
The sale of the PICC and Midline portfolios, along with the discontinuation of certain products, is part of AngioDynamics' strategic move to streamline its operations and focus on more profitable areas. While this is expected to improve the gross margin for fiscal 2024, the slight dilution in adjusted EPS indicates a mixed short-term financial impact. The confidence in this analysis is high due to the clear strategic direction and expected financial outcomes outlined by the company.
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