Symmetry Surgical Inc., a subsidiary of orthopaedic implants and instruments maker Symmetry Medical recently completed its distribution agreement with Device Technologies Australia, PTY Ltd. Per the alliance, Device Technologies agreed to directly distribute Symmetry’s surgical offerings in Australia and New Zealand.
Renowned medical devices and consumables company, Device Technologies supplies sophisticated medical equipments to various hospitals and health care centres across Australia and New Zealand. Through the partnership, Symmetry expects to explore growth opportunities to sell its leading brands to new customers and expand its market in the Australian sub-continent.
Symmetry, in December 2011, completed its acquisition of the surgical instruments business of Codman & Shurtleff Inc. ("Codman"), a Johnson & Johnson (JNJ - Analyst Report) enterprise. Following the closure of the transaction, the integrated direct general surgical instruments operation, Specialty Surgical Instrumentation ("SSi"), was renamed “Symmetry Surgical”.
Revenues in the most recent quarter from the smaller Symmetry Surgical unit soared almost threefold to $26.7 million, buoyed by the Olsen Medical and Codman & Shurtleff, Inc. acquisitions, which contributed roughly $16.1 million to the division’s sales.
Symmetry is the largest original equipment manufacturer (“OEM”) provider of implants and related surgical instruments and cases to orthopedic devices manufacturers. Its major customers include Johnson & Johnson’s DePuy, Stryker (SYK - Analyst Report) and Zimmer Holdings.
Symmetry has created a distinct competitive niche in the orthopedic devices market with its “Total Solutions Approach.” The company is investing in revamping its management structure and enhancing customer collaboration, which should push growth moving forward.
However, Symmetry still faces price and procedure volume pressure on the orthopedic front. Also, the company’s high spending may continue to weigh on its bottom line. Currently, we have a Neutral recommendation on the stock. Symmetry currently retains a short-term Zacks #2 Rank (Buy).