Medical products company -
) recently 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.
Integra believes that this product, with its treatment options
for proximal humeral fractures, will be an apt fit for its Titan
Shoulder portfolio. In addition, this plate system with its
unique design will provide better fixation option for calcar neck
with humeral head support.
According to Integra, proximal humeral fracture is the third
most common fracture reported. The company claims that more than
half of all kind of humeral fractures, which are surgically
treated, was corrected using humeral plating systems.
Accordingly, Integra foresees a huge demand for this new plate in
the market based on the estimated 108,000 shoulder fixation
procedures to be performed on older patients (65 years and more)
in the U.S. this year.
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
). All these stocks carry a Zacks Rank #1 (Strong Buy).
CYBERONICS INC (CYBX): Free Stock Analysis
CYTOKINETCS INC (CYTK): Free Stock Analysis
GIVEN IMAGING (GIVN): Free Stock Analysis
INTEGRA LIFESCI (IART): Free Stock Analysis
To read this article on Zacks.com click here.