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10/22/2012 7:30:49 PM
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 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 rating).
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