Integra's Second Cobalt Chrome Rod - Analyst Blog
March 26 2013 - 12:23PM
Zacks
In line with its product pipeline expansion and development
plan, recently musculoskeletal major – Integra LifeSciences
Holdings Corporation (IART) launched the second cobalt
chrome rod for its Daytona and Malibu Spinal Systems.
According to Integra, the enhanced strength and stiffness (ESS)
characteristics made this cobalt chrome rod more advanced compared
with its earlier version. The company currently plans for the
controlled market release of this product in the third quarter of
2013.
This new launch enhanced Integra’s product offering to a large
extent with versatile solutions for spinal deformity correction
procedures like multiple rod options in several of its deformity
systems including titanium alloy, stainless steel and cobalt
chrome. According to Integra, deformity correction is a specialized
segment of the spinal fixation market with challenging cases.
Hence, product expansion in this field with broader treatment
options will be hugely appreciated and accepted among patients.
Accordingly, Integra is optimistic about the success of this ESS+
cobalt chrome rod.
Integra recently has made number of advancements in the field
product development. Last week, the company featured the successful
implantation of more than 4,000 of its IPP-ON PIP Fusion Systems.
The same week, it received 510k clearance from the U.S. Food and
Drug Administration (FDA) for its Proximal Humeral Fracture Plate
System.
The company believes that this achievement will act as a major
impetus for growth of its Extremity Reconstruction business. With
the FDA approval, Integra is planning for the controlled market
release in 2013.
Despite a challenging macroeconomic environment, we are
encouraged by Integra’s solid performance in U.S. Extremities,
which grew 8.6% to $31.3 million at constant exchange rates or CER.
The company’s focus on strategic initiatives to drive growth and
profitability in the orthopedic and Neurosurgery market is also
quite encouraging. Several initiatives on the company’s part such
as planned product launches and acquisitions are expected to
accelerate sales growth for the next several quarters.
However, tighter capital spending continues to challenge the
surgical instruments market. Moreover, the company believes that
the medical device excise tax and new depreciation on its ERP
system will temper its 2013 margin growth.
Integra currently carries a Zacks Rank #3 (Hold). However, other
medical device stocks worth a look are Given
Imaging (GIVN), Cyberonics Inc. (CYBX)
and Cytokinetics Inc (CYTK). All these stocks
carry a Zacks Rank #1 (Strong Buy).
CYBERONICS INC (CYBX): Free Stock Analysis Report
CYTOKINETCS INC (CYTK): Free Stock Analysis Report
GIVEN IMAGING (GIVN): Free Stock Analysis Report
INTEGRA LIFESCI (IART): Free Stock Analysis Report
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