3D Systems Corp
) acquired a leading provider of personalized surgical treatments
and patient-specific medical devices, Medical Modeling, for an
undisclosed amount. The company expects the acquisition to be
accretive to its earnings. However, it failed to impress
investors as the stock fell 2.97% during intra-day trading on
Thursday, following the news.
The combination of 3D Systems and Medical Modeling is believed
to create the largest 3D printing personalized surgery and
medical device service and product capability. Post acquisition,
3D Systems intends to deliver the only integrated 3D
modeling-to-printing capability available in direct metals and
biocompatible plastics, that is approved by the FDA.
The acquisition is a strategic move by 3D Systems, as the
Medical Modeling buy signifies the greater adoption of 3D
technology not only in the field of industrial manufacturing but
also in the MedTech industry. Most importantly, this
Colorado-based company was the first to launch 3D
printing-centric personalized surgery and patient-specific
medical device solutions and its manufacturing processes are
approved by FDA.
Moreover, Medical Modeling also brings on board Virtual
Surgical Planning (VSP), which is a service-based approach to
personalized surgery that combines expertise in medical imaging,
surgical simulation and additive manufacturing.
This solution provides surgeons the access to a
state-of-the-art toolbox for the most challenging head and neck
surgical procedures. Further, VSP also provides with a
comprehensive virtual surgical plan with custom-engineered
instrumentation to guarantee surgical success. VSP is a patented
and tested technology and is available to assit in surgeries
ranging from trauma reconstruction of the facial skeleton to
guidance of fibula-free grafts to more routine orthognathic
Prior to this in Feb 2014, 3D printing solutions provider had
printed a hybrid Exoskeleton robotic suit by partnering Ekso
Bionics, a robotic exoskeleton company. The 3D printed Ekso-Suit
- the first of its kind - was made for Amanda Boxtel, who was
paralyzed from waist down after a skiing accident in 1992 in
The greater adoption of 3D printing technology is also being
supported by IDC's growth estimates for the worldwide 3D printer
market. The research firm expects 3D printing revenues and units
to grow at a CAGR of 29% and 59%, respectively, for the 2012-2017
period. Moreover, according to Taiwan Industrial Economics and
Knowledge Research Center (IEK), the global 3D printer market
will reach 100K units in 2014, and increase to approximately 6
million units by 2018.
These estimates are incrementally positive for 3D Systems as
it is a leading provider of 3D printing design-to-manufacturing
solutions including 3D printers, print materials and
cloud-sourced, on-demand custom parts for professionals and
consumers. The company's solutions currently work on materials
like plastics, metals, ceramics and edibles. The company expects
that its portfolio of new and innovative products will lead to
more than 30% organic growth in the next couple of years, thereby
enhancing its margins and earnings.
3D Systems currently hold a Zacks Rank #4 (Sell). Investors
interested in the computer peripheral equipment can consider
companies such as
Alps Electric Co. Ltd.
), all three carry a Zacks Rank #2 (Buy).
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