Symmetry Surgical Inc., the wholly-owned subsidiary of orthopedic implants and instruments maker Symmetry Medical , launched the Staggs Uterine Compression Clamp on June 11. With the new addition to its product line, Symmetry attempts to strengthen its presence in the surgical instruments market.
Symmetry’s new product is intended to mechanically compress the middle layer of the uterine wall called myometrium during postnatal uterine atony, in order to reduce severe hemorrhage and blood loss. Uterine atony is a condition wherein the myometrium muscle in a woman’s uterus loses its contraction ability following a cesarean section.
The clamp has been invented by Dr. Stephen M. Staggs and he believes that the advanced hands-free reusable device will enhance the safety of all cesarean deliveries and lower postnatal deaths. As per statistics, 32.9% cesarean childbirth was reported in the U.S. in 2009. Hence, Symmetry Surgical has a potential target market to penetrate and sell its Staggs Uterine Compression Clamp.
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 (ZMH - Analyst Report).
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).