Symmetry Surgical, a subsidiary of orthopedic implants and
Symmetry Medical, Inc.
), recently signed a distribution agreement with a leading
medical device distributor, MTG Medical Technologies (MTG). Per
the terms of the deal, MTG will distribute Symmetry Surgical's
surgical instruments product portfolio in Europe.
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MTG, a subsidiary of Neuro-Competence, distributes cutting-edge
yet affordable medical devices to hospitals located across
Germany, Austria, Switzerland, Czech Republic, Hungary and
Slovakia. Given MTG's strong presence in these countries, the
partnership will enable Symmetry Surgical to grow its customer
base in the European market.
The distribution agreement is in line with Symmetry Surgical's
focus on worldwide expansion of its business inclusive of all
brands under the erstwhile Codman Surgical Instruments and SSi.
The company further plans to expand into other key European
countries to attract healthy revenue opportunities.
Since Symmetry Medical's core Original Equipment Manufacturing
("OEM") Solutions business is facing declining capital spending,
procedural and pricing pressure from the weak global orthopedic
market, the company is focused on expanding its smaller Symmetry
In the last reported third quarter 2012 results, revenues from
the smaller Symmetry Surgical unit increased more than twofold to
$24.8 million in the quarter, buoyed by the Olsen Medical and
Codman & Shurtleff, Inc. acquisition, which contributed
roughly $13.7 million to the division's sales.
Earlier, in October, Symmetry Surgical had entered into a
distribution agreement with Canada-based AMT Electrosurgery Inc.
to distribute its entire portfolio of medical devices in Canada.
In June, Symmetry Surgical had completed a distribution agreement
with Japan Surgical Specialty ('JSS') Corporation to sell its
products in the Japanese market. The company had also completed a
distribution agreement to directly distribute its offerings in
Australia and New Zealand.
Symmetry Medical is the largest OEM provider of implants and
related surgical instruments and cases to orthopedic devices
manufacturers. Its major customers include
Johnson & Johnson
Zimmer Holdings, Inc.
Currently, we have a Neutral recommendation on the stock, which
retains a short-term Zacks #3 Rank (Hold).