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Anika Therapeutics Receives FDA Nod for Bone Repair Therapy

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Anika Therapeutics Inc. (ANIK - Free Report) recently obtained 510(k) approval from the U.S. Food and Drug Administration (FDA) for its latest hyaluronic acid (HA) technology-based Bone Repair treatment. This marks the commercial debut of the company’s regenerative portfolio in the United States and is an important milestone for Anika.

This HA-based therapy is used for filling bone voids or defects of the skeletal system. These defects may not always be intrinsic to the bone but may also result from a surgery or traumatic injury.

The filter is composed of a synthetic, biocompatible and osteoconductive bone-graft substitute material. On injecting into a void, it hardens at body temperature. It is then resorbed and replaced by the growth of new bone during the healing process.

Traditionally, bone autograft was the gold standard, but it carried a risk of procedural complications. This prompted a shift toward such synthetic and resorbable modes of treatment.

Anika expects this latest development to be a significant driver in generating revenues in the full continuum of orthopedic care.

 

The Global Orthopedic Devices Market

Per a research conducted by BIS Research, the global orthopedics devices market was valued at $40.20 billion in the year 2016 and is expected to reach $61.02 billion by 2023 at a CAGR of 6.1%. The growing incidents of orthopedic disorders and increasing geriatric population are likely to be the key catalysts. Accordingly, we believe that the latest FDA approval for Anika Therapeutics’ HA-based Bone Repair treatment is perfectly strategic and well timed.

Price Performance

Anika’s shares have rallied 9.6% over the last year compare with the industry’s rally of 2.1%.

 

 

Zacks Rank & Key Picks

Anika carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are Akari Therapeutics PLC. (AKTX - Free Report) and XOMA Corporation (XOMA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), while Integer Holdings Corporation (ITGR - Free Report) carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank Stocks Here.

Akari has a projected growth rate of 88.9% for the first quarter of 2018. The company delivered positive earnings surprise in the last three trailing quarters with an average of 88.6%.

XOMA is expected to score an impressive earnings growth rate of 99.2% in the 2017. The stock has rallied a whopping 407.4% in the last 6 months, despite a decline of 3% of its industry.

Integer Holdings has a long-term expected earnings growth rate of 15%. The stocks have rallied 50.6% over the broader industry’s gain of 22.9% over the last year.

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