Merit Medical Issues Statement Regarding Director Nominations From Starboard

SOUTH JORDAN, Utah, Jan. 27, 2020 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading manufacturer and marketer of proprietary disposable devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy, today confirmed that it has received notice from Starboard Value LP (“Starboard”) that it has nominated seven individuals to stand for election as directors at Merit’s 2020 Annual Meeting of Shareholders (the “Annual Meeting”). In its notice to Merit, Starboard indicated that it intends to withdraw four of its seven nominees if there are only three seats on Merit’s Board to be filled at the Annual Meeting. The date of the Annual Meeting has not yet been set.

Members of Merit’s Board and management team recently had an initial discussion with representatives of Starboard, and Merit looks forward to further engagement to better understand Starboard’s ideas. Merit values constructive input from all shareholders toward the shared goal of enhancing stakeholder value.

Merit is focused on becoming a leaner, more efficient growth company, and took significant actions during the third and fourth quarters of 2019 to improve performance and free cash flow, and enhance financial flexibility. Merit is also taking actions to expand its pipeline to drive future results, particularly in electrophysiology and vascular access. Overall, Merit currently expects to release 10-15 new products in the coming months.

The Merit Board is comprised of highly qualified and diverse directors who have substantial business, financial and medical experience with extensive knowledge of Merit’s products, global footprint and procedures. Merit’s Environmental, Social and Governance Committee regularly evaluates the Board’s composition to ensure that Merit’s directors collectively provide the diversity, background and experience necessary to advance Merit’s long-term strategy and stakeholder interests. As a result of these regular assessments, two of Merit’s current directors – Jill Anderson and Lynne Ward – were appointed during 2019.

On January 21, 2020, Merit announced that Kent Stanger, co-founder and former Merit CFO, will not stand for re-election at the upcoming Annual Meeting. As a result, Merit will reduce the size of its Board to nine directors effective as of the Annual Meeting.

Merit’s Environmental, Social and Governance Committee will review Starboard’s notice of nomination pursuant to established policies. The Board will present its recommendations regarding director nominations in due course. Merit shareholders do not need to take action at this time.