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NuVasive Poised on International Growth, Strong Spine Market

On Sep 25, 2015, we updated our research report on NuVasive, Inc.NUVA . We are impressed with continued growth visible across all the product lines and the expansive geographic reach of the company.

Based on market share-taking strategy, NuVasive continues to show balanced growth in the U.S. and beyond. We believe that, the gradual shift in the spine market toward minimally invasive surgery and increase in international access to healthcare has provided NuVasive with ample opportunity for accelerated growth outside the U.S.

In the last reported quarter, international growth was backed by strong contributions from the Asia-Pacific and European regions, especially Japan, Australia and Italy. According to management, the international region holds tremendous growth opportunity for NuVasive, given that the company currently holds a mere 4% of the total market share therein. The company currently expects its International business to grow more than 20% in 2015.

Additionally, the ample scope of growth on offer in the spine market buoys optimism. According to NuVasive, the spine fusion market, including biologics, is estimated to be approximately $9.0 billion globally in 2015. This market is gradually experiencing greater adoption and increasing demand for the company's line of surgical alternatives that offer less tissue disruption.

In addition, a strong financial position allows NuVasive to enhance shareholders' value. The company has been experiencing solid margin expansion primarily on the back of continued strong operational gains driven by improved asset efficiencies. NuVasive expects this growth process to continue through the rest of 2015 as well.

On the flip side, pricing continues to be a major headwind for NuVasive. Also, the competitive landscape remains tough.

The stock currently carries a Zacks Rank #1 (Strong Buy).

Key Picks from the Sector

Some other top-ranked stocks in the broader medical sector are Capricor Therapeutics, Inc. CAPR , ICU Medical, Inc. ICUI and OraSure Technologies, Inc. OSUR . All the three stocks carry a Zacks Rank #1.

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ORASURE TECH (OSUR): Free Stock Analysis Report

NUVASIVE INC (NUVA): Free Stock Analysis Report

ICU MEDICAL INC (ICUI): Free Stock Analysis Report

CAPRICOR THERAP (CAPR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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