3D Systems ( DDD Quick Quote DDD - Free Report) recently partnered with regenerative medicine giant, CollPlant Biotechnologies ( CLGN Quick Quote CLGN - Free Report) , to create 3D bioprinted regenerative soft tissue matrix to simplify and improve breast reconstruction procedures involving implants. This collaboration is a potential breakthrough in the medical 3D printing industry and the reconstructive surgery industry. Following the announcement, shares of 3D Systems shot up 27.7% on Tuesday, reflecting the bullish sentiments of investors about the company. What This Means for The Medical World
World Health Organization notes that last year, 2.3 million women were diagnosed with breast cancer globally. Majority of women required partial or complete removal of breast tissue. Advanced treatments involving evolving reconstructive procedures increase the chances of survival by 90% or more. However, currently, most of the breast reconstruction procedures derive soft tissue matrices from human cadavers or animals, which may see supply shortages. Moreover, these sources are susceptible to inducing adverse immune responses in the human body, which affects healing. The collaborative efforts of 3D Systems and CollPlant aim to eliminate this drawback. The bioprinted soft tissue matrices will be developed using plant-derived rhCollagen, which does not induce any adverse immune response in the human body and promotes tissue regeneration. The soft tissue matrix will be designed to match the patient’s anatomy and support the lower part of the breast, expanding the implant socket. This will widen the coverage of the implant. Both partnering companies believe that this solution is likely to significantly increase the addressable market for soft tissue augmentation in breast implant procedures. Dr. Jeffrey Graves, President & CEO, 3D Systems, noted, “In January of this year, we announced our intention to increase the investment in regenerative medicine and focus on developing and commercializing solutions to change how healthcare is delivered and bring substantial benefits to patients. Through this project we’re embarking on with CollPlant, we’re exploring a novel application that could offer a new reconstruction treatment for breast cancer survivors. It’s inspiring to be involved in a project that has the potential to have such a positive impact on the human condition.” Conclusion
3D technology has the potential to revolutionize manufacturing and improve the commercial space. Various companies, ranging from hospital managers to car manufacturers, are now opting for varied 3D solutions to address simple make-to-stock orders as well as complex, engineer-to-order production strategies. Hence, the company has been expanding its operational processes to meet increasing demand across diverse sectors.
Consistent demand for printers and materials for medical and dental customers are fueling the growth of this segment. The company remains especially bullish in its healthcare business. In January this year, 3D Systems had announced a partnership with United Therapeutics ( UTHR Quick Quote UTHR - Free Report) to develop 3D printed human organs for transplant procedures using a similar matrix technology. 3D Systems believes material science will be a key driver in the transition to 3D production and it is investing large sums in material innovation across its portfolio to capitalize on this trend. Zacks Rank & Another Stock to Consider
3D Systems currently carries a Zacks Rank #2 (Buy).
Another top-ranked stock in the broader technology sector is Silicon Motion Technology Corporation ( SIMO Quick Quote SIMO - Free Report) , sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The long-term earnings growth rate for Silicon Motion is currently pegged at 8%. Breakout Biotech Stocks with Triple-Digit Profit Potential
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