Teleflex disclosed in its fiscal 2013 annual report that it is experiencing “unexpected difficulties” developing the Sustain coating technology acquired from Semprus BioSciences in May 2012.
“As of December 31, 2013, we continue to experience difficulties with respect t to the development of the Semprus technology, which we are attempting to resolve through further research and testing,” Teleflex says in a Form 10-K filing with the SEC. “Failure to resolve these issues may result in a reduction of the expected future cash flows related to the Semprus technology and could result in recognition of impairment charges with respect to the related assets, which could be material,” the company adds.
According to the filing, the Research Triangle Park, N.C., devicemaker had recorded net assets of $42 million related to its investment in the technology.
The Semprus technology is a covalently bonded, long-lasting polymer intended to reduce infections and complications from blood clots. Teleflex said that while it eventually aims to apply Sustain to a wide range of fields, it is initially focusing on vascular devices within its critical care group.
Critical care products have accounted for a majority of the company’s revenues in the last three years, reaching 70 percent — $1.2 billion — in FY 2013. The devicemaker offers five types of specialty products for critical care: vascular access catheters, vascular access accessories, sheath inducers, catheter tip positioning systems and emergency/trauma products. — Lena Freund
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