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AngioDynamics (ANGO) to Acquire RadiaDyne, Boost Oncology

Zacks

In an initiative to boost the oncology profile, AngioDynamics, Inc. ANGO recently announced an agreement to acquire RadiaDyne. Notably, the acquisition is expected to close by the end of September and will be neutral to earnings on an adjusted basis. The financial terms of the deal have been kept under wraps.

Per management, the latest development perfectly complements AngioDynamics’ BioSentry asset purchase to build a strong oncology portfolio.

A Brief Note on RadiaDyne

RadiaDyne is a privately held medical diagnostic and device company that develops patient dose monitoring technology to improve cancer treatment outcomes. Trailing 12-months revenues for the company were more than $6 million.


How Will the Buyout Boost AngioDynamics?

AngioDynamics continues to expand its base on the back of acquisitions and strategic alliances.

With the latest acquisition, AngioDynamics can leverage on RadiaDyne’s proprietary OARtrac real-time radiation dose monitoring platform, which was launched recently. It provides real-time measurement through an intracavitary device. The system also provides customized adaptive radiotherapy, reduced side effects as well as improved clinical outcomes across radiation and photon beam therapy.

The compnay will be able to leverage on RadiaDyne’s other market-leading oncology solutions like IsoLoc/ImmobiLoc and Alatus balloon stabilizing technologies.

Strength in Oncology Segment

The RadiaDyne acquisition will expand AngioDynamics’ Oncology segment.

The Oncology division includes Microwave Ablation, Radiofrequency Ablation (RFA) and NanoKnife product lines.

Sales in this segment grossed $12.1 million, up 38% on strong growth in the Solero Microwave Ablation System. However, an increase in sales of NanoKnife was partially offset by lower sales of RFA system.

Price Performance

Shares of AngioDynamics have outperformed the industry in a year's time. Notably, the company’s shares have rallied 39.5%, against the industry's decline of 2.7%. The current level is also higher than the S&P 500 index's gain of 12.6% over the same time frame.

The stock has a Zacks Rank #3 (Hold).

Want More from the MedTech Space?

A few better-ranked stocks in the MedTech space are Penumbra, Inc PEN, Masimo Corp. MASI and Illumina, Inc ILMN. Penumbra and Illumina sport a Zacks Rank #1 (Strong Buy). Masimo currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Penumbra has a long-term expected earnings growth rate of 20%, while the same for Masimo and Illumina is pegged at 14.8% and 22.1%, respectively.

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