The Orthopedics and Tissue Technologies group of
Integra LifeSciences Holding Corporation
) has recently signed a 3-year group purchasing contract with
Charlotte, N.C.-based healthcare improvement company Premier,
Per the contract, Integra will offer small bone orthopedic
implants to patients of Premier alliance member healthcare
organizations. However, following this seemingly positive news,
Integra's share price dropped marginally by 0.9% on Friday.
Per management at Integra, this deal seeks to establish a
long-lasting relationship between the two healthcare organizations.
Integra expects this contract to help it provide Premier members
with the best-in-class products and services aimed at serving upper
and lower extremity patients.
This new agreement will allow Integra to meet Premier's needs
for orthopedic devices. The deal will also ensure greater access to
Integra's entire portfolio, the benefits of which can be reaped by
Premier alliance healthcare members.
This marks the initial step in Integra's Enterprise selling
efforts to develop larger enterprise contracts to support the
company's growth plans over the next 5 years. The pact with Premier
is also significant as it represents the company's first agreement
of this kind.
The abovementioned deal is well poised to contribute
substantially to Integra's Extremities business in 2015 and beyond.
However, management expects it to have no significant impact on the
company's 2014 financial results.
New Jersey-based Integra is a leading provider of surgical
instruments and a manufacturer of orthobiologic products for repair
and grafting of bones. The company develops small bone orthopedic
implants for treatment of patients with common degenerative
conditions impacting the upper and lower extremities at more than
5,200 hospitals and surgery centers in the U.S.
Integra currently has a Zacks Rank #4 (Sell). Some better-ranked
stocks worth considering in the biomedical industry include
ANI Pharmaceuticals, Inc.
Gilead Sciences Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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