Medical technology company
) recently announced the opening of its third orthopedic
manufacturing center in Fort Wayne, Indiana. The company invested
$17 million to build an 80,000 square foot center to expand its
subsidiary Greatbatch Medical.
The facility has been named the "Susan H. Campbell Orthopedic
Center," in honor of the late Susan Campbell, who had served as
senior vice president of Greatbatch Medical's Orthopaedic Business.
Among others, the facility will manufacture fraction fixation
implants, spine fixation and hip procedure devices. The new center
will help to expand Greatbatch's core orthopedic sales and in turn
boost its future growth.
In the recently reported quarter, revenues from the core
Greatbatch Medical segment dropped 8% year over year to $117.8
million. Within Greatbatch Medical, Orthopaedic sales plunged
roughly 22% to $31 million due to lack of product expansion and
development initiatives. Currency exchange swings negatively
impacted orthopedic sales by $1 million in the quarter. Greatbatch
expects revenues from this business to be lower in first-half 2012
with a recovery expected in the second half.
The opening ceremony was attended by U.S. Congressman Marlin
Stutzman, along with other local dignitaries. The senior management
as well as employees of Greatbatch were also present at the event.
The Allen County-Fort Wayne Economic Development Alliance and the
Indiana Economic Development Corporation have lent their support to
Greatbatch is a leading producer and supplier of batteries,
capacitors and components used in implantable medical devices. The
company's top customers include
Johnson & Johnson
St. Jude Medical
Greatbatch has been acquiring complementary businesses over the
last few years in a bid to expand. Its pipeline is healthy with a
number of products currently in development that are expected to
support growth in the long run.
However, soft Cardiac Rhythm Management and Orthopaedic markets
and pricing pressure remain headwinds. We currently have a Neutral
rating on GreatBatch. The stock currently retains a Zacks #3 Rank,
which translates into a short-term Hold recommendation.
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