On June 6, 2012,
Symmetry Medical Inc.
) announced the completion of its distribution agreement between
its subsidiary Symmetry Surgical and Japan Surgical Specialty (JSS)
Corporation. As per the agreement, JSS will distribute all the
leading medical device brands of Symmetry Surgical in Japan.
The procurement of a distributor in the Japanese market is
aligned with Symmetry Surgical's focus on worldwide expansion of
its business inclusive of all brands under the erstwhile Codman
Surgical Instruments and SSi. The acquisition of the surgical
instruments business of Codman and Shurtleff Inc. (Codman), a
Johnson and Johnson
) enterprise in December 2011 shaped Symmetry Surgical into a
business worth $100 million. The Specialty Surgical Instruments
(SSi) was acquired in 2007.
Symmetry Surgical is currently serving a market size of $1
billion with potentially 40% sales contribution from the
international market. With the acquisition of Codman Surgical
Instruments, Symmetry Surgical has extended its global footprint to
over 60 countries. Symmetry Surgical had earlier completed a
distribution agreement to directly distribute its offerings in
Australia and New Zealand. The company focus towards expanding its
international presence is yielding results. Currently, Symmetry
plans to gain clients in emerging markets of Asia, the Middle East
and South America.
Management at Symmetry Surgical believes that the product
portfolio launch in Japan is a breakthrough, given the fact that
the country is the world's second largest medical device maker. It
also asserts that the distribution agreement in a key market like
Japan would catalyze growth of the existing business. The
move should hasten the company's global expansion. The integration
of the recent acquisition will also enhance the product portfolio
to serve a larger Japanese market.
Founded in 1991, Japan Surgical Specialty Corporation is part of
the Intermed Japan Group (IMJ). As per the company, JSS is driven
to meet the demands of the surgical market in Japan via clinical
and service support. JSS operates a full service business model
along with logistics and related distribution network in Japan. In
this context, JSS is well poised to drive sales of the product
portfolio of Symmetry Surgical.
Symmetry is the largest original equipment manufacturer (OEM)
and provider of implants and related surgical instruments and cases
to orthopedic devices manufacturers. Its major customers include
Johnson & Johnson's DePuy,
Symmetry currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating. However, we maintain our long-term
'Neutral' recommendation on the stock.
JOHNSON & JOHNS (JNJ): Free Stock Analysis
SYMMETRY MEDICL (SMA): Free Stock Analysis
STRYKER CORP (SYK): Free Stock Analysis Report
ZIMMER HOLDINGS (ZMH): Free Stock Analysis
To read this article on Zacks.com click here.