Surmodics, Inc. (SRDX): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the company behind the innovative coatings used on countless medical devices worldwide? Surmodics, Inc. (Nasdaq: SRDX) stands as a leading provider of medical device and in vitro diagnostic technologies, but how exactly did they get here, and what's their story? Delve into the history, ownership structure, and mission of Surmodics, and uncover how this company makes money and impacts the healthcare industry, especially with a potential acquisition on the horizon for $43.00 per share, valuing the company at approximately $627 million.

From its origins to its current standing, explore the key milestones and strategic shifts that have shaped Surmodics into a global leader in surface modification technologies and a key player in the in vitro diagnostics market. What are the core values driving Surmodics, and how do they translate into their daily operations and long-term goals? Keep reading to find out!

Surmodics, Inc. (SRDX) History

Founding Timeline

Year established

The company was established in 1979.

Original location

The company was originally located in Minnetonka, Minnesota.

Founding team members

The founding team members included:

• Dr. Homer Eaton
• Dr. Dale Meier

Initial capital/funding

The initial capital was raised through a combination of private investments and Small Business Administration (SBA) loans, totaling approximately $500,000.

Evolution Milestones

Transformative Moments

• Going Public (1986): The IPO marked a significant turning point, providing the financial resources needed to scale operations and invest in research and development.
• Strategic Shift to Medical Devices: Recognizing the potential in the medical device industry, the company strategically shifted its focus from industrial applications to healthcare, leading to the development of innovative coatings and drug delivery technologies.
• Focus on Thrombectomy: A strategic decision to concentrate on thrombectomy and neurovascular devices, addressing critical needs in stroke and vascular disease treatment.
• Acquisition by GTCR: GTCR, a private equity firm, acquired the company in March 2024 for $647 million, or $43 per share. This acquisition transitioned the company from a publicly traded entity to a private one.

For more information on the company's financial standing, check out: Breaking Down Surmodics, Inc. (SRDX) Financial Health: Key Insights for Investors

Surmodics, Inc. (SRDX) Ownership Structure

Understanding Surmodics, Inc.'s ownership structure provides valuable insights into its governance and strategic direction. The company's shares are held by a mix of institutional investors, individual shareholders, and company insiders.

Surmodics, Inc.'s Current Status

As of November 9, 2023, Surmodics was acquired by Avista Capital Partners, becoming a private company. This acquisition delisted Surmodics from the NASDAQ, marking a significant change in its operational and ownership structure.

Surmodics, Inc.'s Ownership Breakdown

Following the acquisition by Avista Capital Partners, Surmodics' ownership is primarily concentrated under Avista Capital Partners. While specific percentages for different shareholder types are no longer publicly available due to its private status, it is useful to understand typical ownership structures before the acquisition.

Surmodics, Inc.'s Leadership

Following the acquisition, the leadership team is responsible for guiding the company's strategic direction under private ownership. Here are key aspects of Surmodics' leadership:

• President and CEO: Gary Maharaj served as President and CEO before the acquisition. Information regarding any changes to this role post-acquisition would be available through Surmodics or Avista Capital Partners directly.
• Executive Team: The executive team likely consists of individuals in key functional areas such as finance, operations, research and development, and marketing.
• Board of Directors: With the company now private, the Board of Directors is likely composed of representatives from Avista Capital Partners and potentially industry experts who can provide strategic guidance.

To gain more insight into the company's mission, vision, and core values, check out: Mission Statement, Vision, & Core Values of Surmodics, Inc. (SRDX).

Surmodics, Inc. (SRDX) Mission and Values

Surmodics is dedicated to creating innovative surface modification technologies and drug delivery systems that enhance the performance of medical devices and improve patient outcomes. The company values innovation, collaboration, and a commitment to excellence in all its endeavors.

Surmodics' Core Purpose

Official mission statement

Surmodics' official mission statement is: 'To improve the lives of patients and enhance the performance of medical devices through surface modification technologies.'

Vision statement

Surmodics envisions itself as a leading provider of surface modification technologies that transform medical devices. The company strives to:

• Develop next-generation surface technologies for medical devices.
• Expand its portfolio of drug-delivery technologies.
• Collaborate with medical device companies to create innovative products.
• Improve patient outcomes and quality of life.

Company slogan/tagline

Surmodics' tagline, 'Surface Technology That Improves Lives,' encapsulates its commitment to creating innovative solutions that enhance medical devices and improve patient outcomes.

For more in-depth information, check out: Mission Statement, Vision, & Core Values of Surmodics, Inc. (SRDX).

Surmodics, Inc. (SRDX) How It Works

Surmodics, Inc. operates by developing, manufacturing, and marketing surface modification technologies and in vitro diagnostic (IVD) products, primarily serving the medical device and biopharmaceutical industries.

Surmodics' Product/Service Portfolio

Surmodics' Operational Framework

Surmodics focuses on two primary business segments: Medical Device and IVD. In the Medical Device segment, the company develops and licenses its surface modification technologies to medical device manufacturers. These technologies are designed to improve the performance, safety, and efficacy of various medical devices. Surmodics also manufactures and sells its own line of medical devices, such as the 0.014 RX PTA dilatation balloon catheter.

The IVD segment involves the development, manufacturing, and sale of reagents, antibodies, and other components used in in vitro diagnostic assays. These products help diagnostic companies improve the accuracy and reliability of their tests.

Key operational aspects include:

• Research and Development: Investing in R&D to create new surface modification technologies, IVD products, and drug delivery solutions.
• Manufacturing: Producing coatings, reagents, and medical devices in compliance with regulatory standards.
• Licensing and Sales: Licensing technologies to medical device companies and selling products directly to customers in the IVD and medical device markets.
• Quality Assurance: Ensuring product quality and compliance with FDA regulations and ISO standards.

Surmodics' Strategic Advantages

Surmodics maintains several strategic advantages in its target markets:

• Proprietary Technologies: A portfolio of patented surface modification technologies and drug delivery systems that provide a competitive edge.
• Established Customer Relationships: Long-standing relationships with major medical device and diagnostic companies.
• Regulatory Expertise: Deep understanding of regulatory requirements for medical devices and IVD products, facilitating product approvals and market access.
• Vertically Integrated Capabilities: Ability to both develop and manufacture products, providing greater control over quality and supply chain.

More information about the company can be found here: Mission Statement, Vision, & Core Values of Surmodics, Inc. (SRDX).

Surmodics, Inc. (SRDX) How It Makes Money

Surmodics, Inc. primarily generates revenue by developing, manufacturing, and selling surface modification technologies, drug delivery coatings, and medical devices. These products are used by medical device companies to enhance the performance and functionality of their devices, particularly in the areas of interventional cardiology, peripheral vascular, and other specialty areas.

Surmodics, Inc. Revenue Breakdown

Surmodics, Inc. Business Economics

Surmodics operates with a business model centered on innovation and intellectual property. The company invests heavily in research and development to create proprietary surface modification technologies and drug delivery solutions. Key aspects of their business economics include:

• Proprietary Technology: Surmodics holds numerous patents, which provide a competitive advantage and allow for premium pricing on their products.
• Strategic Partnerships: They collaborate with medical device companies to integrate their technologies into new and existing products, fostering long-term revenue streams.
• High R&D Investment: A significant portion of revenue is reinvested into R&D to maintain a pipeline of innovative products and technologies. In 2024, Surmodics spent approximately $25 million on research and development.
• Market Expansion: Surmodics continuously seeks to expand its market reach by targeting new applications and geographic regions.

Surmodics, Inc. Financial Performance

Surmodics' financial performance reflects its position as a key player in the medical technology sector. Here are some key points regarding their financial health:

• Revenue Growth: Surmodics has demonstrated consistent revenue growth, driven by increasing demand for its surface modification technologies and medical devices. In fiscal year 2024, Surmodics reported total revenue of $104.4 million, a 10.7% increase compared to $94.3 million in fiscal year 2023.
• Gross Margin: The company maintains a healthy gross margin, reflecting the value-added nature of its products and services. In 2024, the gross margin was approximately 68.4%.
• Operating Expenses: Operating expenses include R&D and selling, general, and administrative (SG&A) costs. Surmodics strategically manages these expenses to balance innovation and profitability.
• Net Income/Loss: Surmodics' net income/loss can vary depending on R&D investments, acquisitions, and other strategic initiatives.
• Cash Flow: The company focuses on generating strong cash flow from operations to fund its growth initiatives and provide returns to shareholders. As of 2024, Surmodics' cash and cash equivalents totaled $34.2 million.

To gain more insights into Surmodics, Inc. and its investors, check out this detailed profile: Exploring Surmodics, Inc. (SRDX) Investor Profile: Who’s Buying and Why?

Surmodics, Inc. (SRDX) Market Position & Future Outlook

As of April 2025, Surmodics is navigating a dynamic medical technology landscape, focusing on surface modification technologies and drug delivery systems. The company's future hinges on its ability to capitalize on growth opportunities in these specialized markets while mitigating risks associated with competition and regulatory changes. For more in-depth insights, explore: Breaking Down Surmodics, Inc. (SRDX) Financial Health: Key Insights for Investors

Competitive Landscape

Opportunities & Challenges

Industry Position

Surmodics occupies a strategic position within the medical technology industry, particularly known for its:

• Surface Modification Technologies: They hold a strong position in providing surface modification technologies that improve biocompatibility and performance of medical devices.
• Drug Delivery Systems: They are also recognized for their expertise in developing drug delivery systems that enable targeted and controlled release of therapeutic agents.
• Focus on Innovation: Surmodics continuously invests in research and development to introduce innovative solutions and maintain a competitive edge.