We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NuVasive (NUVA) Boosts Cervical Portfolio With New Buyout
Read MoreHide Full Article
NuVasive, Inc. recently announced the acquisition of Simplify Medical to strengthen its cervical portfolio and provide a complete solution for cervical total disc replacement procedures. NuVasive will add Simplify Medical’s Simplify Cervical Artificial Disc (Simplify Disc) to its C360 portfolio.
Notably, Simplify Medical is a developer of the Simplify Cervical Artificial Disc for cervicaltotal disc replacement (cTDR).
This acquisition is part of NuVasive’s plan to tap the growing market of cervical spine surgery.
Financial Terms of the Deal
Per terms of the agreement, NuVasive acquired Simplify Medical for an upfront payment of $150.0 million, subject to customary purchase price adjustments, and agreed to make additional future payments dependent upon achieving certain milestones related to sales from products incorporating the Simplify Cervical Artificial Disc technology and certain regulatory approvals.
More in the News
The Simplify Disc was found evident to be clinically superior to anterior cervical discectomy and fusion (ACDF) in the randomized clinical trial. Backed by its commercial and distribution channels, NuVasive will drive deployment of the Simplify Disc in the United States and international markets.
Significance of the Buyout
Per NuVasive management, by adding Simplify Disc to C360 portfolio, NuVasive claims to provide best-in-class technology to support surgeons’ preferred procedural approach. Moreover, the acquisition will help NuVasive optimize the surgeon and patient’s experience and create strong shareholder value.
With the buyout of Simplify Medical, NuVasive is now able to focus on all key segments of the cervical spine by offering completely-integrated solutions across ACDF, posterior cervical fusion (PCF) and cTDR trials.
Notably, NuVasive's scale and global commercial channels will significantly step up the ability to bring the Simplify Disc to more surgeons and patients around the world.
Per NuVasive, the acquisition is expected to accelerate sales growth and prove accretive to non-GAAP diluted earnings per share in 2022.
Notable Developments
In January 2021, NuVasive X360 procedural approach was validated in a clinical study published in “The Spine Journal”. The study highlights that single-position spine surgery improves operative efficiency while reducing complications and length of hospital stay.
In November 2020, NuVasive unveiled the C360 cervical spine portfolio along with the commercial launch of the Anterior Cervical Plating (ACP) system that features the thinnest plate available in the market (1.6 mm).
Industry Prospects
Per a report by Global Market Insights, the global artificial disc market size crossed $1.6 billion in 2019 and is projected to achieve more than 18.6% CAGR by 2026. Growing awareness among people regarding benefits of disc replacement procedure over spinal fusion surgeries will further expand the market.
Price Performance
Over the past six months, shares of the company have gained 15.6% compared to the industry’s growth of 6.7%.
Zacks Rank and Key Picks
Currently, NuVasive carries a Zacks Rank #3 (Hold).
Meridian Biosciences has a projected long-term earnings growth rate of 61%.
Owens & Minor has a projected long-term earnings growth rate of 45%.
Envista has an expected long-term earnings growth rate of 24%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
NuVasive (NUVA) Boosts Cervical Portfolio With New Buyout
NuVasive, Inc. recently announced the acquisition of Simplify Medical to strengthen its cervical portfolio and provide a complete solution for cervical total disc replacement procedures. NuVasive will add Simplify Medical’s Simplify Cervical Artificial Disc (Simplify Disc) to its C360 portfolio.
Notably, Simplify Medical is a developer of the Simplify Cervical Artificial Disc for cervicaltotal disc replacement (cTDR).
This acquisition is part of NuVasive’s plan to tap the growing market of cervical spine surgery.
Financial Terms of the Deal
Per terms of the agreement, NuVasive acquired Simplify Medical for an upfront payment of $150.0 million, subject to customary purchase price adjustments, and agreed to make additional future payments dependent upon achieving certain milestones related to sales from products incorporating the Simplify Cervical Artificial Disc technology and certain regulatory approvals.
More in the News
The Simplify Disc was found evident to be clinically superior to anterior cervical discectomy and fusion (ACDF) in the randomized clinical trial. Backed by its commercial and distribution channels, NuVasive will drive deployment of the Simplify Disc in the United States and international markets.
Significance of the Buyout
Per NuVasive management, by adding Simplify Disc to C360 portfolio, NuVasive claims to provide best-in-class technology to support surgeons’ preferred procedural approach. Moreover, the acquisition will help NuVasive optimize the surgeon and patient’s experience and create strong shareholder value.
With the buyout of Simplify Medical, NuVasive is now able to focus on all key segments of the cervical spine by offering completely-integrated solutions across ACDF, posterior cervical fusion (PCF) and cTDR trials.
Notably, NuVasive's scale and global commercial channels will significantly step up the ability to bring the Simplify Disc to more surgeons and patients around the world.
Per NuVasive, the acquisition is expected to accelerate sales growth and prove accretive to non-GAAP diluted earnings per share in 2022.
Notable Developments
In January 2021, NuVasive X360 procedural approach was validated in a clinical study published in “The Spine Journal”. The study highlights that single-position spine surgery improves operative efficiency while reducing complications and length of hospital stay.
In November 2020, NuVasive unveiled the C360 cervical spine portfolio along with the commercial launch of the Anterior Cervical Plating (ACP) system that features the thinnest plate available in the market (1.6 mm).
Industry Prospects
Per a report by Global Market Insights, the global artificial disc market size crossed $1.6 billion in 2019 and is projected to achieve more than 18.6% CAGR by 2026. Growing awareness among people regarding benefits of disc replacement procedure over spinal fusion surgeries will further expand the market.
Price Performance
Over the past six months, shares of the company have gained 15.6% compared to the industry’s growth of 6.7%.
Zacks Rank and Key Picks
Currently, NuVasive carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space are Meridian Biosciences Inc. , Owens & Minor, Inc. (OMI - Free Report) and Envista Holdings Corporation (NVST - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of Zacks #1 Rank stocks here.
Meridian Biosciences has a projected long-term earnings growth rate of 61%.
Owens & Minor has a projected long-term earnings growth rate of 45%.
Envista has an expected long-term earnings growth rate of 24%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>