SurModics Inc (SRDX)

[Democritus_of_Abdera]

Shears.. I agree that more good news for SRDX is likely.

In fact, Bruce Barclay made the following statement in his prepared remarks for the April 18, 2007 Q2 Earnings Call:

” .... before we close the fiscal year 2007 we intend to partner with a major orthopedics company. Such an agreement would be a first for SurModics in this large new market for us.... We continue to have active dialogue with multiple parties interested in our Orthopedic technologies and product offerings. We are making progress with our trauma wound space product as well. Although SurModics has not yet filed an application with the FDA for product approval we continue to make nice progress on the development of that product. We expect to provide updates as the year unfolds.”

Based upon the SEC Form 4 filing pattern, it appears that SRDX rewards performance with Transaction Code A, Non-Derivative Security grants. For example, Paul Lopez (VP Ophthalmics) received two “Code A” awards in the past six months. I suspect that these awards are linked to signing of the agreement with Merck. One was for 2000 shares filed on Jan 29, 2007, the other for 4000 shares filed on June 20, 2007 (just 5 days before the Merck Agreement was announced). On the other hand, I do not see any Code A awards foreshadowing the St Jude agreement reported on April 12, 2007.

So, if we see a middle of the year Code A stock award to Steven Keough (VP and General Manager of Orthopedics), then I will anticipate a significant orthopedics agreement in the near future. In the absence of a such an award, I would expect any agreement to be on the order of that signed with STJ, at best.