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Integra Lifesciences Hits 52-Week High on Product Launches

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Share price of Plainsboro NJ-based Integra Lifesciences Corporation (IART - Free Report) reached a new 52-week high of $47.50 on May 19, finally closing a tad lower at $47.39. The company gained 7.9% over the past three months, much better than the S&P 500’s 0.7% over the same period.

Average volume of shares traded over the last three months was remarkable at approximately 615.6K. The stock has a market cap of $3.58 billion.

Notably, in the majority of the last three months, Integra Lifesciences has been trading above the Zacks categorized Medical - Biomedical and Genetics sub-industry. To date, the stock has gained 12.8%, compared to the 4.6% decline of the broader industry.

The company’s long-term growth fundamentals are compelling. This Zacks Rank #3 (Hold) company recorded a five-year CAGR for revenue of 9.8% and had an impressive earnings growth rate of 8% over the same period.

Further, Integra Lifesciences’ estimate revision trend for the current year is favorable. In the past 30 days, three estimates have moved up with one downward revision.

Integra LifeSciences Holdings Corporation Price and Consensus

Growth Catalysts

The latest 52-week high came on the back of a series of recent developments. Integra Lifesciences has been planning to execute its growth plan through product launches and efficient management. The company’s Regenerative Technologies is the largest franchise under Orthopedics and Tissue Technologies.

Within the portfolio, the company recently launched small sizes of both Omnigraft and PriMatrix to address diabetic foot ulcers. Management also looks forward to generate double-digit performance for the remainder of the year from this business.

This apart, the company has launched an advanced Integra Dermal Regeneration Template (IDRT) Single Layer for dermal repair defects reconstruction in a simple procedure. In this way, Integra Lifesciences is gradually working on one of its strategies of geographical expansion outside the U.S.

Further, management announced the launch of SurgiMend MP, its latest offering in tissue-building solutions for complex abdominal hernia repair.  Integra Lifesciences is optimistic that SurgiMend MP will significantly serve surgeons looking to meet the challenging hernia repair needs of their patients with complex abdominal wall conditions.

We are also looking forward to Interga Lifesciences’ acquisition of Johnson & Johnson’s Codman Neurosurgery business. The company’s exclusive distribution agreement with Dr. Reddy's Laboratories is also encouraging. Under the agreement, Dr. Reddy’s will market and distribute Integra Lifesciences’ DuraGen Plus and SuturableDuraGen Dural Regeneration Matrices in India.

All these factors are expected to boost the company’s share price in the days ahead.

Key Picks

Better-ranked stocks in the broader medical sector are Luminex Corp. , Hologic, Inc. (HOLX - Free Report) and Edward Lifesciences, Inc. (EW - Free Report) . Notably, Luminex sports a Zacks Rank #1 (Strong Buy), while Hologic and Edward Lifesciences carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock added roughly 13% over the last three months.

Hologic has a long-term expected earnings growth rate of 29.9%. The stock has a solid one-year return of roughly 30.5%.

Edward Lifesciences recorded a stellar EPS growth rate of almost 16% (last 3–5 years of actual earnings).

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