Symmetry Surgical, a subsidiary of orthopedic implants and
), recently entered into a distribution agreement with
Canada-based AMT Electrosurgery Inc. ("AMT"). Per the deal, AMT
will be the sole distributor of Symmetry Surgical's entire
portfolio of medical devices in Canada.
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.
AMT supplies specialized surgical systems to more than 400
hospitals in Canada. Given AMT's strong presence in the Canadian
market, this partnership should further expand Symmetry's
foothold in the global market.
Earlier, 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
The acquisition of the surgical instruments business of Codman
and Shurtleff Inc. (Codman), a Johnson & Johnson enterprise,
in December 2011 shaped Symmetry Surgical into a business worth
$100 million. The Specialty Surgical Instruments (SSi) was
acquired in 2007.
However, Symmetry Medical's core OEM Solutions business is
facing declining capital spending, procedural and pricing
pressure from the weak global orthopedic market. In addition, the
current weakness in the economic environment makes us cautious
about the company's future growth prospects. We believe that the
company needs to improve its operational efficiency to overcome
these macroeconomic challenges.
We currently have a Neutral recommendation on Symmetry
Medical, which carries a short-term Zacks #4 Rank (Sell
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