Back to top

Analyst Blog

Medical technologies company, Greatbatch Inc. (GB - Analyst Report) recently announced that it will set up an Active Implantable Medical Device (“AIMD”) Research and Development (“R&D”) Centre in Singapore. It will be Greatbatch’s first centre outside the U.S., specifically built to cater to the Asia-Pacific medical devices market. It is also the first multinational active implantable products R&D centre in Singapore and in Asia.

The establishment of the facility is in line with the company’s long-term strategy of expanding its footprint in emerging healthcare markets. Management also believes that its announcement to launch cost-efficient innovative technologies in the Asian as well as worldwide markets will boost shareholders return.

QiG Group, LLC, the company’s subsidiary, which designs and develops new products for its core markets, will team up with physicians and other industry leaders from Asia Pacific to manufacture active implantable products for the growing Neuromodulation and Cardiovascular markets.

Greatbatch has recognized potential research opportunities in MRI Conditional Systems, Interventional Procedures, Atrial Fibrillation ablation as well as therapies for obstructive sleep apnea and obesity related to cardiovascular diseases. In the Neuromodulation market, the company is already developing a new product called Algostim, a spinal cord stimulator to treat patients with chronic pain in the limbs and trunk.

The company chose Singapore as its base given the country’s heavy investment in R&D to develop its biomedical science sector and well-endowed research institutes. Kulbir Sandhu has been appointed as the head and Dr. Kaiser as the director of the Singapore R&D centre.

Greatbatch is a leading producer and supplier of batteries, capacitors and components used in implantable medical devices. The company’s top customers include Boston Scientific (BSX - Analyst Report), Johnson & Johnson (JNJ - Analyst Report), Medtronic (MDT - Analyst Report) and St. Jude Medical (STJ - Analyst Report).

Greatbatch has been acquiring complementary businesses over the last few years in a bid to expand. The company has a strong pipeline with a number of products currently in development that should support growth in the long run.

However, soft Cardiac Rhythm Management and Orthopedic markets and pricing pressure remain headwinds. We currently have a Neutral recommendation on Greatbatch. The stock currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%