Wright Releases Ortholoc System

Orthopedic devices maker Wright Medical Group ( WMGI - Analyst Report ) recently reported the release of its Ortholoc 3Di Reconstruction Plating System for ankle and foot operations. The system may be procured later in July 2012 from the company’s U.S.-based foot and ankle sales team and, in certain regions outside U.S., from its distributorship and direct sales force.

According to a medical specialist, the Ortholoc 3Di Reconstruction System provides doctors a broad selection of plates. This range facilitates performance of frequently occurring operations carried out by foot and ankle specialists, including fusion of the toe. By providing for variations in screw size and position, the system constructs a strong implant that is critical for the mending of the bone.

The Ortholoc 3Di Reconstruction Plating System comprises screws, surgical instrumentation and plates which are utilized for healing fractures of the foot. The system integrates the company’s Ortholoc 3Di polyaxial locking know-how, which permits the medical practitioner to make adjustments with screws to enhance bone repair.

Wright’s focus on niche technologies lends some support amid economic cyclicality. Moving forward, revenue growth will be supported by new product launches. Moreover, new deals in extremities are expected to bolster growth in this segment. The company’s restructuring initiatives should also boost future profitability.

Our views on the company are moderated by intense competition from larger players and pricing pressure. Wright Medical competes with much bigger names such as Zimmer Holdings ( ZMH - Analyst Report ) , Stryker ( SYK - Analyst Report ) and Smith & Nephew ( SNN - Snapshot Report ) . Moreover, the company remains exposed to procedure volume headwind. Our Neutral recommendation is supported by a short-term Zacks #3 Rank (Hold).