After a series of product recalls in April and a disappointing first quarter, Integra LifeSciences Holdings Corporation (IART - Free Report) witnessed a favorable event. This medical device and implant company recently gained the CE Mark approval in Europe for its Integra Smart Cervical Solution.
Following the CE Mark approval, the device will be available across Europe, the Middle East and Africa. We believe that the commercialization of innovative products should boost Integra’s international revenues that currently linger at roughly a fourth of its total revenue.
Integra’s latest offering is a therapeutic device for degenerative diseases that needs stabilization and fusion of two or more cervical vertebrae. Management claims that Integra Smart Cervical Solution is a time-saving and user-friendly device that integrates cervical cage with a 100% synthetic bone substitute.
Moreover, this pre-filled implant is connected to a disposable inserter to position it securely in the patient’s cervical spine. Integra Smart Cervical Solution improves standards of care by ensuring stability and lordotic curving in affected patients.
Integra anticipates to launch over 25 innovative products this year with a focus on regenerative medical offerings. We are optimistic about the market launch of a modular shoulder system with a reverse option, which will allow the company to serve a $650 million shoulder market.
We are positive that Integra’s focus on niche technologies will lend some support amid the contagion of economic problems in Europe. Moving forward, revenue growth will be supported by new product launches.
Currently, the stock carries a Zacks Rank #3 (Hold). While we remain on the sidelines for Integra, other stocks such as Biogen Idec Inc. (BIIB - Free Report) and Protalix BioTherapeutics Inc. (PLX - Free Report) are worth considering. Both are Zacks Rank #1 (Strong Buy) stocks. Affymax Inc. , carrying a Zacks Rank #2 (Buy) also warrants a look.