Surmodics, Inc. (SRDX): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Surmodics, Inc. (SRDX) right now, trying to map out how this medical device player actually makes its money, especially with the GTCR acquisition looming. Honestly, it's a dual-engine model: one part is the steady, high-margin licensing revenue from their proprietary coatings-think that $9.4 million in Q1 FY2025 royalties-and the other is the direct product sales from their Pounce Thrombectomy Platform. We need to see how the $6.6 million from IVD sales fits in, too, all while managing the near-term risk of that pending $627 million transaction. I've broken down the entire nine-block structure below so you can see exactly where the value is created and where the costs-like that R&D spend-are hitting the bottom line.

Surmodics, Inc. (SRDX) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that drive Surmodics, Inc.'s value right now, especially after the company went private. These aren't just names on a slide; they represent significant financial flows and market access.

GTCR LLC Acquisition Finalization

The major event shaping Surmodics, Inc.'s structure as of late 2025 is the finalization of its acquisition by GTCR LLC. This deal, initially announced in May 2024, finally closed in November 2025 after clearing regulatory hurdles, specifically a challenge from the Federal Trade Commission (FTC) regarding GTCR's ownership of Biocoat.

The transaction took Surmodics, Inc. private, delisting its shares from the Nasdaq market. The agreed-upon terms meant Surmodics, Inc. shareholders received $41.00 per share in cash, based on the final court ruling clearing the way for the merger. The total equity valuation for this transaction was approximately $627 million.

Abbott: Exclusive Drug-Coated Balloon Commercialization

The partnership with Abbott remains central for the SurVeil Drug-Coated Balloon (DCB) product line. Abbott holds the exclusive worldwide commercialization rights for the SurVeil DCB, while Surmodics, Inc. is responsible for manufacturing and supplying the device.

This relationship has a clear financial structure, though recent revenue recognition has shifted. Surmodics, Inc. received a significant milestone payment from Abbott worth $27 million upon the device's FDA approval, which translated to $24 to $24.5 million in revenue. However, the financial reporting for fiscal year 2025 shows a wind-down of this specific revenue stream. For the third quarter of fiscal year 2025, which ended June 30, 2025, SurVeil DCB license fee revenue was $0.0 million, compared to $1.1 million in the third quarter of fiscal 2024. The company had guided that license fee revenue would decrease by $3.6 million in fiscal 2025, with no further recognition subsequent to March 31, 2025.

Here's a quick look at the financial impact of this specific partnership stream in recent quarters:

Original Equipment Manufacturers (OEMs) for Coating Technology Licensing

Surmodics, Inc. partners with various Original Equipment Manufacturers (OEMs) by licensing its proprietary coating technologies, which is a key, recurring revenue source. The growth in utilization of their Serene™ hydrophilic coating is a positive indicator here.

This licensing activity generates consistent royalty and fee revenue. For instance, in the first quarter of fiscal 2025, Medical Device performance coating royalties and license fee revenue increased by 14%, reaching $9.4 million from $8.2 million the prior year. By the third quarter of fiscal 2025, this revenue stream grew again, hitting $9.7 million, a 4% increase over the $9.3 million recognized in the third quarter of fiscal 2024.

The clinical trials supporting the technology are also a point of partnership and validation. The TRANSCEND pivotal clinical trial was completed in the second quarter of fiscal 2025.

• The TRANSCEND trial randomized 446 patients.
• The trial involved 65 global sites.
• The trial demonstrated SurVeil DCB was non-inferior to the IN.PACT Admiral DCB while using a substantially lower drug dose.

Clinical Research Organizations (CROs) for Trial Management

Managing complex, multi-center studies like TRANSCEND requires specialized external support. Surmodics, Inc. relies on Clinical Research Organizations (CROs) to manage the logistics, data collection, and regulatory adherence for these critical trials. While specific management costs paid to CROs aren't broken out in the public guidance, the successful completion of the TRANSCEND trial in Q2 FY2025 is a direct result of this operational partnership structure.

You can see the core financial outputs from these technology licensing partnerships in the table below:

Finance: draft 13-week cash view by Friday.

Surmodics, Inc. (SRDX) - Canvas Business Model: Key Activities

You're looking at the core things Surmodics, Inc. has to do day-to-day to make this model work, especially with the acquisition drama wrapping up. It's a mix of science, sales, and legal navigation.

Research, development, and manufacturing of proprietary coatings (e.g., Serene)

The engine here is the coating technology, like the Serene hydrophilic coating. You see its impact in the royalty and license fee revenue Surmodics collects from its Medical Device segment. For instance, in the third quarter of fiscal 2025, this revenue stream hit $9.7 million, which was a 4% year-over-year increase. Looking back at the full fiscal year 2024, coating royalties and license fees totaled $37.4 million, a 14% jump over fiscal 2023. The first quarter of fiscal 2025 also showed strong coating performance, with royalties and license fees at $9.4 million, marking a 14% increase compared to the prior year period. This activity is critical because it underpins the core value proposition for many of their partners.

Here's a quick look at the coating-related revenue performance:

Commercialization and sales of the Pounce Thrombectomy Platform, including Pounce XL

Moving the Pounce Thrombectomy Platform is a major focus, especially after the commercial release of Pounce XL on April 3, 2025. This expansion allows the platform to treat larger peripheral arteries, from 5.5-10 mm in diameter. The sales team's success in pushing this platform is showing up in the numbers; in the third quarter of fiscal 2025, Surmodics reported a 35% growth in Pounce Thrombectomy Platform sales year-over-year. This platform is a fully mechanical, non-aspiration solution, and its real-world effectiveness is being tracked in the PROWL registry.

The latest data from the PROWL registry, which included 160 patients and was presented in November 2025, highlights the activity's success:

• Procedural success rate was 91.7%.
• 78.8% of cases required no additional clot removal treatments.
• The average use time was 24.1 minutes.
• Device-related major adverse event rate was only 0.6%.

Honestly, those clinical results are what the sales force uses to drive adoption.

Regulatory compliance and clinical data generation (e.g., PROWL registry)

Generating and presenting clinical data is a key activity to support both coating adoption and device sales. The PROWL registry is the prime example here, moving from an interim analysis of 74 patients to a 160-patient presentation by late 2025. The initial analysis showed an average use time of 20.3 minutes for 74 patients. Furthermore, the company has to manage the regulatory pathway for its products, like the Pounce XL system, which received FDA 510(k) clearance in late 2024 for commercialization in 2025. The TRANSCEND clinical trial, which supported the SurVeil DCB, concluded in the second quarter of fiscal 2025.

Managing the complex legal process of the GTCR acquisition

This activity has been front and center in late 2025. The deal, originally agreed upon in May 2024 for approximately $627 million or $43 per share, faced a major hurdle when the FTC filed a complaint in March 2025. A significant milestone was the U.S. District Court for the Northern District of Illinois denying the FTC's request for a preliminary injunction on November 10, 2025. This ruling caused Surmodics' stock to jump 50% to $40.87 on November 11, 2025. The FTC subsequently indicated they would not appeal the ruling by November 17, 2025, with the Temporary Restraining Order set to lift at 5:00 p.m. Central Time that day. To clear regulatory concerns, GTCR agreed to divest key assets, valued up to $15 million depending on performance metrics, to Integer Holdings Corp. Merger-related charges for fiscal 2025 were assumed to be approximately $16.0 million in guidance provided in August 2025.

The company's financial position as of June 30, 2025, showed $32.7 million in cash and investments, against $5.0 million in revolving debt and $25.0 million in term loan debt.

Finance: draft 13-week cash view by Friday.

Surmodics, Inc. (SRDX) - Canvas Business Model: Key Resources

You're looking at the core assets Surmodics, Inc. (SRDX) relies on to operate and generate revenue in late 2025. These aren't just line items on a balance sheet; they are the specialized capabilities that underpin their value proposition in the medical device and IVD spaces.

Proprietary surface modification and drug-delivery coating technology

The foundation of Surmodics, Inc.'s technology platform is its expertise in surface modification and drug-delivery coatings for intravascular medical devices. This capability is commercialized through various product lines and licensing agreements.

For instance, growth in performance coatings like the Serene hydrophilic coating showed strong momentum, with royalties and license fees increasing by +14% year-over-year in the first quarter of fiscal 2025. Also, the fully mechanical Pounce Thrombectomy Platform, which leverages device design and development expertise, delivered 35% growth in sales year-over-year in the third quarter of fiscal 2025. The company is expanding the pipeline evaluating its Preside hydrophilic coatings to include neurovascular, coronary, peripheral, and structural heart segments.

Here's a quick look at the financial performance tied to these core technology areas:

Intellectual property (IP) portfolio, including patents for SurVeil DCB

Intellectual property, secured through patents, is critical because Surmodics, Inc. generates significant revenue through licensing arrangements. The loss or expiration of patent protection for licensed technologies could materially hurt revenue and cash flow.

The SurVeil drug-coated balloon (DCB) technology is a prime example, having been supported by the TRANSCEND clinical trial data. While the SurVeil DCB license fee revenue is expected to decrease by $3.6 million in fiscal 2025 due to the completion of the trial and cessation of further recognition after March 31, 2025, the underlying technology remains a key asset. The company's overall focus on R&D is reflected in the 37% growth in R&D and other revenue year-over-year in the third quarter of fiscal 2025.

The company's commitment to IP is also evident in its ongoing operations, even as it navigates the pending acquisition by GTCR, which was valued at approximately $627 million in May 2024.

Specialized manufacturing facilities for medical devices and IVD components

Surmodics, Inc. operates specialized facilities to manufacture its proprietary products and supply components to partners. For instance, they manufacture and supply the SurVeil DCB to Abbott, their exclusive distribution partner. The company's product gross margin was 55.1% in the first quarter of fiscal 2025, showing the value capture from their manufacturing processes.

The company's operational strength is supported by its balance sheet, holding $32.7 million in cash and investments as of June 30, 2025. The Medical Device segment's product sales were $9.5 million in Q3 Fiscal 2025, down from $10.7 million in Q3 Fiscal 2024, partly due to lower SurVeil DCB product shipments, which were expected to decrease by approximately $7.5 million for the full fiscal year 2025.

Key operational data points include:

• Total Employees: 389
• Product Gross Margin (Q1 FY2025): 55.1%
• Cash and Investments (as of June 30, 2025): $32.7 million

Highly skilled R&D and regulatory affairs personnel

The development and commercialization of advanced medical devices and diagnostic components require a highly specialized workforce. Surmodics, Inc. employs a team dedicated to R&D, regulatory compliance, and clinical trial execution, such as the TRANSCEND study for the SurVeil DCB.

The company's total headcount as of late 2025 stands at 389 full-time employees. The focus of this team is driving growth in areas outside of the normalizing SurVeil DCB revenue stream. For example, the Medical Device segment delivered 35% growth in Pounce Thrombectomy Platform sales year-over-year in Q3 FY2025, which was coupled with 37% growth in R&D and other revenue, signaling strong customer demand and R&D activity. Key leadership roles, such as President of Medical Device Coatings and President of In Vitro Diagnostics, show the organizational structure supporting these technical areas.

The company's ability to manage complex regulatory pathways and drive product development is a key intangible resource. Finance: draft 13-week cash view by Friday.

Surmodics, Inc. (SRDX) - Canvas Business Model: Value Propositions

You're looking at the core offerings Surmodics, Inc. brings to the table as of late 2025. These aren't just product names; they represent specific, quantifiable advantages in the medical technology space.

High-performance hydrophilic coatings for intravascular devices

Surmodics, Inc. is a key player in the Medical Coatings Market, which is expected to reach $9,983.0 million in 2025. Your value here comes from providing surface modification technologies that enhance device performance and safety globally. The company's focus is on lubricious and drug-eluting coatings, often through licensing agreements with other medical device manufacturers.

The company launched its Preside hydrophilic coatings in November 2023, offering a low-friction, low-particulate generation coating to complement the existing Serene hydrophilic coatings. This focus on next-generation coatings is important for distal access, especially in neurovascular applications.

Here's a look at the revenue tied to these performance coatings:

The growth in royalties and license fees, hitting 14% year-over-year in Q1 Fiscal 2025, shows strong customer utilization of technologies like the Serene hydrophilic coating.

Mechanical thrombectomy devices (Pounce) for rapid, non-surgical clot removal

The Pounce Thrombectomy Platform is positioned as a rapid, low-risk, fully mechanical solution for removing thrombi or emboli in peripheral arteries without needing aspiration, thrombolytics, or capital equipment. This platform now covers a wide vessel size range, which is a significant value-add for physicians treating limb ischemia.

The platform's utility is supported by real-world data:

• Pounce Thrombectomy Platform sales growth was 35% year-over-year in Q3 Fiscal 2025.
• In the PROWL registry subset analysis of 60 patients, 96.8% procedural flow restoration was demonstrated.
• In the PROWL registry of 160 patients, 78.8% of cases required no additional clot removal treatments following Pounce System use.
• The device-related major adverse event rate in the 160-patient PROWL registry was just 0.6%.
• The average use time for the device was 24.1 minutes.

The platform expanded its reach with the Pounce XL Thrombectomy System receiving FDA 510(k) clearance, indicated for vessels 5.5-10 mm in diameter, joining the Pounce Thrombectomy System (3.5-6 mm) and Pounce LP System (2-4 mm).

Drug-coated balloon (SurVeil) with a substantially lower drug dose

The SurVeil drug-coated balloon (DCB) offers a value proposition centered on comparable efficacy to the market-leading IN.PACT Admiral DCB but with a significantly reduced drug load. This is a direct benefit for safety profiles.

The TRANSCEND trial confirmed this advantage:

Financially, the revenue stream from SurVeil is normalizing. The company expects SurVeil DCB product revenue to decrease by approximately $7.5 million in fiscal 2025 due to lower demand from Abbott. Furthermore, SurVeil DCB license fee revenue was $0.0 million in Q3 Fiscal 2025, compared to $1.1 million in Q3 Fiscal 2024, as the TRANSCEND trial completed in Q2 Fiscal 2025.

Reliable chemical and biological components for in vitro diagnostics (IVD)

The In Vitro Diagnostics (IVD) segment provides chemical and biological components for diagnostic testing. This segment showed resilience despite some timing issues impacting revenue in early 2025.

Here are the reported revenue figures for this segment:

• IVD Revenue was $6.6 million in Q1 Fiscal 2025 (ended December 31, 2024).
• IVD Revenue grew 6% year-over-year in Q3 Fiscal 2025 (ended June 30, 2025).

The Q1 FY2025 dip to $6.6 million (a 5% decrease) was attributed to unfavorable order timing for distributed antigen and diagnostic test chemical components.

Finance: draft 13-week cash view by Friday.

Surmodics, Inc. (SRDX) - Canvas Business Model: Customer Relationships

Dedicated account management for large OEM licensing partners

The relationship with large OEM licensing partners is critical, particularly for the Medical Device segment's performance coatings. Abbott Vascular, Inc. is the exclusive distribution partner for the SurVeil Drug-Coated Balloon (DCB) product.

• SurVeil DCB license fee revenue recognition ceased subsequent to March 31, 2025.
• Expected decrease in SurVeil DCB product revenue for fiscal year 2025: approximately $7.5 million due to lower commercial shipments from Abbott.
• Medical Device performance coating royalties and license fee revenue for Q1 Fiscal Year 2025: $9.4 million, a 14% increase year-over-year.
• Medical Device performance coating royalties and license fee revenue for Q3 Fiscal Year 2025: $9.7 million, a 4% increase year-over-year.

Direct sales force engagement with interventional cardiologists and radiologists

Surmodics, Inc. established a field sales team in fiscal 2022 to sell proprietary vascular intervention products directly to U.S. healthcare providers. This direct engagement supports the commercialization of the Pounce Thrombectomy Platform.

• Pounce Thrombectomy Platform sales growth year-over-year in Q3 Fiscal Year 2025: 35%.
• SG&A expenses increased by 53% in fiscal 2022 due to investments in direct sales personnel.
• The Pounce Thrombectomy Platform has a combined vessel diameter range of 2-10mm.

Technical support and application training for coating customers

The core of the performance coatings business relies on license agreements with medical device manufacturers, requiring ongoing support for the application of proprietary surface modification and drug-delivery coating technologies. Growth in customer utilization of the Serene™ hydrophilic coating drives royalty revenue.

Transactional sales for IVD component orders

In Vitro Diagnostics (IVD) revenue is transactional, dependent on the timing of customer orders for distributed antigen and diagnostic test chemical components.

• IVD revenue for Q1 Fiscal Year 2025: $6.6 million, a 5% decrease year-over-year.
• IVD revenue for Q2 Fiscal Year 2025: $7.4 million, a 3% increase compared to Q2 Fiscal Year 2024.
• IVD revenue for Q3 Fiscal Year 2025: The search results indicate an increase, but the exact amount is not explicitly separated from Total Revenue excluding SurVeil DCB license fee revenue, which was $29.6 million.

Surmodics, Inc. (SRDX) - Canvas Business Model: Channels

You're looking at how Surmodics, Inc. gets its products into the hands of users, which involves a mix of direct selling, partnerships, and technology transfer.

Direct sales force for Pounce Thrombectomy Systems to hospitals/clinics

Surmodics, Inc. supports the commercial release of its Pounce Thrombectomy Platform, which includes the Pounce, Pounce LP, and Pounce XL systems, through a direct sales channel targeting hospitals and clinics. This platform addresses a combined vessel diameter range of 2-10 mm for peripheral artery clot removal. The focus on this direct channel is showing traction; for instance, in the third quarter of fiscal 2025, the company delivered 35% growth in Pounce Thrombectomy Platform sales year-over-year. The Pounce XL Thrombectomy System, cleared by the FDA and in limited market release (LMR) since January 2025, expands the platform's utility into larger iliac and femoral arteries (5.5-10 mm vessels). The Pounce Thrombectomy System itself was introduced in 2021, with the Pounce LP system following in 2024.

Exclusive distribution agreements, like the one with Abbott for SurVeil

A significant channel involves exclusive distribution agreements, most notably with Abbott for the SurVeil drug-coated balloon (DCB). This relationship is winding down in terms of upfront payments and product shipments. Surmodics, Inc. expected the SurVeil DCB license fee revenue to decrease by $3.6 million in fiscal 2025, with no further recognition of this specific license fee revenue occurring subsequent to March 31, 2025. Furthermore, the company projected that SurVeil DCB product revenue would decrease by approximately $7.5 million in fiscal 2025 due to lower commercial shipments from Abbott. For the third quarter of fiscal 2025, SurVeil DCB license fee revenue recognized was $0.0 million, down from $1.1 million in the third quarter of fiscal 2024. The product sales revenue from this channel in Q3 FY2025 was down by $1.7 million compared to the same period last year.

Direct sales of IVD components to diagnostic manufacturers

Surmodics, Inc. also sells chemical components for In Vitro Diagnostics (IVD) tests directly to diagnostic manufacturers. This segment shows consistent, though sometimes variable, revenue. In the third quarter of fiscal 2025, In Vitro Diagnostics revenue was $7.4 million, which was an increase of $0.4 million, or 6%, compared to $7.0 million in the third quarter of fiscal 2024. However, looking at the first quarter of fiscal 2025 (ending December 31, 2024), IVD revenue was $6.6 million, a decrease of $0.4 million, or 5%, from the prior year's first quarter, attributed to timing of orders for distributed antigen and diagnostic test chemical components.

Licensing agreements for technology transfer and royalties

The company monetizes its surface technology expertise through royalties and license fees from other medical device companies using its coatings, such as the Serene™ hydrophilic coating. This revenue stream demonstrated growth in the third quarter of fiscal 2025. Medical Device performance coating royalties and license fee revenue reached $9.7 million in Q3 FY2025, an increase of $0.3 million, or 4%, over the $9.3 million reported in Q3 FY2024. In the first quarter of fiscal 2025, this royalty revenue was $9.4 million, up 14% (or $1.2 million) from $8.2 million in Q1 FY2024, driven by customer utilization of the Serene coating.

Here's a quick look at the revenue components for the third quarter of fiscal 2025, which helps map the channel performance:

The Pounce Thrombectomy Platform sales are a key growth driver within the Medical Device segment, offsetting headwinds elsewhere. The company's overall focus for the remainder of fiscal 2025, excluding the declining SurVeil DCB license fee revenue, was on achieving total revenue between $115.0 million and $117.0 million.

The distribution methods Surmodics, Inc. employs can be summarized by the product type:

• Pounce Thrombectomy Systems: Primarily direct sales force engagement.
• Serene Coating: Channel is exclusive distribution through partners like Abbott.
• IVD Components: Direct sales to diagnostic manufacturers.
• Technology Platforms: Revenue via licensing agreements and royalties.

Finance: review the Q4 2025 revenue forecast against the updated guidance range by next Tuesday.

Surmodics, Inc. (SRDX) - Canvas Business Model: Customer Segments

You're looking at the customer base for Surmodics, Inc. right as the company is transitioning ownership, which definitely impacts how you view each group's near-term focus. Here's the breakdown of the core segments Surmodics serves, based on the latest reported figures leading up to the late 2025 acquisition closing.

Global Medical Device Manufacturers (OEMs) using Performance Coatings

This segment represents the core technology licensing and royalty stream. These Original Equipment Manufacturers (OEMs) use Surmodics, Inc.'s proprietary surface modification and drug-delivery coating technologies for their intravascular devices, spanning neurovascular, peripheral, and coronary markets. The utilization of these coatings directly translates to Surmodics, Inc.'s royalty revenue.

For instance, in the first quarter of fiscal year 2025 (ended December 31, 2024), Medical Device performance coating royalties and license fee revenue saw a strong increase of 14%, reaching $9.4 million, largely due to the continued growth in customer utilization of the Serene™ hydrophilic coating. This shows direct reliance from these large manufacturers on Surmodics, Inc.'s coating intellectual property.

Interventional Physicians (Cardiologists, Radiologists) using Pounce Devices

This group consists of the end-users-the physicians performing procedures-who rely on Surmodics, Inc.'s fully mechanical, non-aspiration-based vascular intervention medical devices, primarily the Pounce Thrombectomy Platform. These devices are engineered for rapid, non-surgical clot removal in peripheral arteries.

The commercial traction for this segment was significant in the third quarter of fiscal year 2025 (ended June 30, 2025), where Pounce Thrombectomy Platform sales delivered 35% growth year-over-year. Furthermore, clinical validation, which drives physician adoption, is key; the PROWL registry study analyzed 160 patients and demonstrated a 91.7% procedural success rate for the platform.

The platform's expansion is notable:

• The Pounce Thrombectomy System targets 3.5-6 mm peripheral arteries.
• The Pounce LP Thrombectomy System targets 2-4 mm peripheral arteries.
• The Pounce XL Thrombectomy System, which received FDA 510(k) clearance on October 1, 2024, expands reach to larger peripheral arteries up to 10 mm in diameter.

In Vitro Diagnostic (IVD) Companies for Chemical/Biological Components

The IVD customer segment involves companies utilizing Surmodics, Inc.'s chemical and biological components for their in vitro diagnostic immunoassay tests and microarrays within the diagnostic and biomedical research markets. This is a component-supply relationship.

Data from the first quarter of fiscal 2025 (ended December 31, 2024) showed this segment experienced a 5% decrease in revenue, landing at $6.6 million. This dip was attributed to unfavorable order timing for distributed antigen and diagnostic test chemical components.

Private Equity Firm GTCR, as the Imminent New Owner

While not a traditional end-user customer, GTCR represents the most significant financial stakeholder segment as of late 2025. The definitive agreement was to acquire Surmodics, Inc. for $43.00 per share in cash, equating to an approximate equity value of $627 million. By November 2025, a major regulatory hurdle was cleared when the U.S. District Court denied the Federal Trade Commission's request for a preliminary injunction, allowing the deal to move toward closing.

The financial impact of this segment is the agreed-upon transaction value, which delivered liquidity to shareholders at the $41 per share price following the final court order termination.

Here's a quick view of the transaction context:

The FTC's initial challenge centered on concerns that the combination of GTCR's majority-owned Biocoat and Surmodics, Inc. would create a highly concentrated market, controlling over 50% of the market for hydrophilic coatings.

Surmodics, Inc. (SRDX) - Canvas Business Model: Cost Structure

You're looking at the expenses Surmodics, Inc. incurred to run and develop its business through late 2025, which were heavily influenced by the pending acquisition by GTCR and ongoing regulatory review.

Significant Research and Development (R&D) expenses for device pipeline represent a core, ongoing cost. You see this investment reflected in the financials, though some costs were offset by refunds. For the three months ended June 30, 2025 (Q3 FY2025), Research and Development expense decreased by $2.2 million year-over-year. This decrease was partly due to a $1.1 million refund of previously incurred costs related to the TRANSCEND clinical trials. For the first quarter of fiscal 2025 (three months ended December 31, 2024), R&D expense was reported at $8.367 million. The pipeline development is critical, as evidenced by the 37% growth in R&D and other revenue seen in Q3 FY2025, showing activity in that area.

Sales, General, and Administrative (SG&A) costs were significantly impacted by the proposed acquisition. These costs are reported within operating costs and expenses, excluding product costs. A key driver was the merger-related charges. Specifically, in the first quarter of fiscal 2025, Surmodics, Inc. incurred $2.3 million in merger-related charges, which were reported in SG&A expense, covering costs associated with the pending acquisition and the response to the FTC's Second Request. Later in the year, for the third quarter of fiscal 2025, these charges rose to $5.3 million. The full fiscal year 2025 guidance assumed approximately $16.0 million in total merger-related charges. Absent these specific, non-recurring charges, the underlying operating expense discipline was a focus.

Manufacturing and inventory costs for Pounce and IVD products factor into the Product Costs line. Product gross margin for the first quarter of fiscal 2025 stood at 55.1%, an improvement from the prior year, supported by a favorable product mix. Product gross profit in that quarter was $9.1 million. However, by the third quarter of fiscal 2025, the product gross margin had compressed to 48.8%, with product gross profit falling to $8.2 million. This margin pressure was partly due to a $1.0 million decline in SurVeil DCB product gross profit, stemming from under absorption and production inefficiencies related to below-scale production and inventory expiration.

Litigation and legal defense costs related to the FTC challenge are embedded within the SG&A structure, particularly within the merger-related charges. The FTC challenged the GTCR acquisition in March 2025, citing antitrust concerns over market concentration in outsourced hydrophilic coatings. The response to the FTC's Second Request was explicitly cited as a driver for the $2.3 million in merger-related expenses recognized in Q1 FY2025. The company stated it would vigorously defend the case in court after the FTC filed for an injunction to block the $627 million deal. A judge later denied the FTC's bid to block the takeover in November 2025, though closing conditions remained.

Here's a look at some of the key expense components for the reported periods in fiscal 2025:

You should also note the costs associated with product execution:

• Product Gross Margin (Q1 FY2025): 55.1%
• Product Gross Margin (Q3 FY2025): 48.8%
• SurVeil DCB Product Gross Profit Decline (Q3 FY2025 vs Q3 FY2024): $1.0 million

The legal defense costs are intertwined with the merger charges, which totaled $5.3 million in Q3 FY2025 alone. Finance: draft 13-week cash view by Friday.

Surmodics, Inc. (SRDX) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for how Surmodics, Inc. (SRDX) brings in cash as of late 2025. It's a mix of device sales, recurring royalties, and the tail end of a major licensing deal. Honestly, the story is about where the growth is coming from while other areas normalize.

The revenue streams are clearly segmented across their core technologies and product lines. For the first quarter of fiscal year 2025 (Q1 FY2025), we saw specific contributions from these areas, which helps map out the current financial reality for Surmodics, Inc. (SRDX).

Here's a quick look at the Q1 FY2025 revenue components:

Product sales from the Pounce Thrombectomy Platform show significant momentum. By the third quarter of fiscal 2025 (Q3 FY2025), sales for this platform delivered 35% growth year-over-year within the Medical Device segment. This growth continued even as other product revenues faced headwinds.

The royalty and license fee revenue stream from performance coatings remains a reliable source. In Q1 FY2025, this category totaled $9.4 million. More recently, in Q3 FY2025, this revenue grew to $9.7 million, up 4% compared to Q3 FY2024's $9.3 million. This stream is clearly benefiting from customer adoption of technologies like the Serene™ hydrophilic coating.

Revenue from the In Vitro Diagnostics (IVD) segment was $6.6 million in Q1 FY2025. While Q1 saw a slight dip, the segment showed strength later in the year; for Q3 FY2025, IVD revenue was $7.4 million, marking a 6% increase year-over-year. That's solid execution across their product portfolio.

The SurVeil DCB license fee revenue is a diminishing stream. Surmodics, Inc. continues to expect this specific license fee revenue to decrease by $3.6 million in the full fiscal year 2025. Furthermore, the company anticipated no further recognition of this specific license fee revenue subsequent to March 31, 2025. The impact was visible in Q3 FY2025, where SurVeil DCB license fee revenue was $0.0 million, down from $1.1 million in Q3 FY2024.

You should also note the expected impact on product sales related to the DCB:

• The company expected SurVeil DCB product revenue to decrease by approximately $7.5 million in fiscal 2025.
• This product revenue decrease was primarily driven by lower demand for commercial shipments from Abbott.
• In Q3 FY2025 alone, SurVeil DCB product sales revenue decreased by $1.7 million year-over-year.

Finance: draft 13-week cash view by Friday.