Smith & Nephew
) advanced wound care portfolio under the Advanced Wound
Management (AWM) business is expected to get a weighty boost with
the recent introduction of its DURAFIBER Ag antimicrobial gelling
fiber dressing in the U.S.
The commercialization of this latest offering also bolstered
market sentiments. Following the positive news, the stock reached
a 52-week high of $62.06 on the day of the announcement (Sep 13).
The share price inched up $0.53 (or 0.86%) to close at $62.01,
reflecting a healthy return of 10.97% over the last six months.
The DURAFIBER Ag is already available in the European Union since
last year. The commercialization and sales of DURAFIBER line
picked up since 2012.
Smith & Nephew's latest addition to DURAFIBER line of
products combines the benefits of silver (Ag) with highly
absorbent and gelling fiber filler dressing. The antimicrobial
DURAFIBER Ag dressing can be used to treat bacterial infections
caused by medium to heavy exuding wounds.
Being a gelling fiber dressing, the broad-spectrum DURAFIBER Ag
is firm when wet, thereby improving exudates management for
clinicians in the U.S. According to Smith & Nephew, the
anti-shrinkage properties of the DURAFIBER Ag dressing combined
with the broad-spectrum antimicrobial ensures efficient exudate
management. The launch of the cost-effective DURAFIBER Ag
underlines Smith & Nephew's commitment to improved health and
economic benefits from its wound care portfolio.
Under AWM, advanced wound care revenues increased 1% to $211
million on the back of improved performance in Europe and
significant contributions from emerging countries. We believe
that launch of high potential products like DURAFIBER should
boost sales in the U.S. going forward.
Notably, the company's increasing focus on AWM franchise is
paying off. On the flip side, the sustained weakness in the
orthopedic reconstruction business is a cause of concern.
Currently, the stock carries a Zacks Rank #3 (Hold). While we
remain on the sidelines for Smith & Nephew, we are positive
Boston Scientific Corporation
). Alere carries a Zacks Rank #1 (Strong Buy) whereas the other
two are Zacks Rank #2 (Buy) stocks.
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