Cantel Medical Corp. (NYSE: CMD) stock fell over 9.4% on May 31st, 2018 post a lower than expected performance. The group’s adjusted earnings per share was 60 cents, while adjusted revenue growth was 13.1 percent to $217.3 million in the third quarter of FY 18 with organic sales growth of 7.6%.
On the other hand, CMD has acquired Aexis Medical BVBA, which is a company specializing in advanced software solutions focused on the tracking and monitoring of instrument reprocessing workflows for hospitals and healthcare professionals. The total deal consideration was $24.8 million consisting of $21.1 million up-front consideration and $3.7 million in an earnout structure to be paid at the two-year anniversary of closing. CMD expects this transaction to be modestly dilutive to GAAP EPS in both fiscal year 2018 and fiscal year 2019, and expects this transaction to be neutral to fiscal year 2018 non-GAAP EPS and a few cents dilutive to fiscal year 2019 non-GAAP EPS as the company invests in this important platform.
Meanwhile, CMD has recently received U.S. Food and Drug Administration (FDA) clearance for its ADVANTAGE PLUS Pass-Thru automated endoscope reprocessor (AER). The ADVANTAGE PLUS Pass-Thru AER is clinically proven to high-level disinfect the most commonly used endoscopes, including duodenoscopes. The machine also uses a unique pass-through design that supports one-way workflow to ensure the highest quality in infection prevention by reducing the risk of human error, distraction and unintended lapses in cleaning protocols. In addition, the hard-wall separation between dirty and clean reprocessing areas is designed to prevent recontamination of reprocessed endoscopes, ensuring safe, patient-ready endoscopes for every procedure. ADVANTAGE PLUS Pass-Thru AER is the first pass-through AER available in the United States. The FDA clearance of ADVANTAGE PLUS Pass-Thru AER further expands the rapidly growing endoscopy portfolio and delivers on the commitment to safeguard the world from infections through innovative, market leading technologies. Further, The ADVANTAGE PLUS Pass-Thru AER is built upon the proven technology of the industry-leading ADVANTAGE PLUS AER to consistently deliver high-level disinfection to support infection prevention efforts of endoscopy units worldwide. This launch further supports CMD’s Complete Circle of Protection, which is an infection prevention program designed to help streamline reprocessing workflow, improve department efficiency and reduce the risk of infection.