In line with its product pipeline expansion and development
plan, recently musculoskeletal major -
Integra LifeSciences Holdings Corporation
) 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
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
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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