SurModics (SRDX) is undervalued relative to its peer group despite a large cash balance, no debt, strong free cash flow and favorable growth prospects.
SRDX provides coating technologies that improve drug and device delivery as well as products and technologies for diagnostic test kits and biomedical research applications. Its coatings are used every day in minimally invasive procedures while over half of the top 10 in vitro diagnostic companies are SRDX customers.
SRDX generates revenue from three primary sources:
Royalties and license fees related to drug delivery and surface modification technologies and in vitro diagnostic formats.
Sale of reagent chemicals to licensees as well as stabilization products, antigens, substrates and surface coatings to the diagnostic and...