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Integer Holdings (ITGR) Buys Oscor, Boosts Global Footprint
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Integer Holdings Corporation (ITGR - Free Report) recently completed the buyout (announced in October this year) of Oscor, Inc. — a privately-held medical device company headquartered in Florida. The acquired company designs, builds, manufactures and markets an all-inclusive portfolio of extremely specialized medical devices, venous access systems and diagnostic catheters and implantable devices.
Per management at Oscor, the company has an excellent track record in the implantable medical technology and electrophysiology space.
The completion of the buyout is likely to provide a boost to Integer Holdings’ Medical business. The move will also aid the company in its efforts toward the execution of its strategy to drive growth and generate a premium valuation for shareholders.
Rationale of the Buyout
This acquisition will broaden Integer’s highly differentiated cardiovascular access and neurostimulation lead wire finished product offerings in fast-growing end markets, which are in sync with the company’s growth strategy. The integration with Oscor is expected to benefit both Integer’s customers and shareholders.
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Apart from this, the buyout is likely to expand Integer Holdings’ research and development abilities as well as its manufacturing presence in the Dominican Republic, thereby further bolstering the company’s extensive global foothold and manufacturing capabilities.
Management expressed confidence in Integer Holdings’ ability to create value through acquisitions, leveraging the progress achieved in implementing strategic operational imperatives across the company.
Recent Developments
Per the company’s third-quarter earnings release in October, revenues at Medical segment improved significantly on both reported and organic basis. In addition, revenues at the Cardio & Vascular business (one of the product lines of this segment) totaled $160.9 million, up 29.1% from the prior-year quarter on a reported basis and up 29% organically. The business recorded strong sales increases across all cardio & vascular markets on the back of robust market demand, especially in the peripheral vascular and electrophysiology markets.
In September 2021, Integer Holdings announced that it will construct a new Medical Device Innovation and Manufacturing facility in the Parkmore East area of Galway to expand its presence in Galway, Ireland. This new facility is required to meet the growing demand for regional research, development and manufacturing capabilities as well as catheters and delivery systems capacity. This investment is intended to support the company’s long-term growth prospects as a result of its strategy to win in the markets it serves.
Price Performance
Shares of this Zacks Rank #2 (Buy) company have gained 7.9% in the past year compared with the industry’s growth of 6%.
Other Stocks to Consider
Some other top-ranked stocks in the broader medical space include Thermo Fisher Scientific Inc. (TMO - Free Report) , McKesson Corporation (MCK - Free Report) and AmerisourceBergen Corporation .
Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).
McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 19.9%. The company currently carries a Zacks Rank #2.
McKesson’s long-term earnings growth rate is estimated at 8.9%. The company’s earnings yield of 9.9% compares favorably with the industry’s 3.2%.
AmerisourceBergen surpassed earnings estimates in each of the trailing four quarters, the average surprise being 5.5%. The company currently carries a Zacks Rank of 2.
AmerisourceBergen’s long-term earnings growth rate is estimated at 11.3%. The company’s earnings yield of 8.9% compares favorably with the industry’s 3.3%.
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Integer Holdings (ITGR) Buys Oscor, Boosts Global Footprint
Integer Holdings Corporation (ITGR - Free Report) recently completed the buyout (announced in October this year) of Oscor, Inc. — a privately-held medical device company headquartered in Florida. The acquired company designs, builds, manufactures and markets an all-inclusive portfolio of extremely specialized medical devices, venous access systems and diagnostic catheters and implantable devices.
Per management at Oscor, the company has an excellent track record in the implantable medical technology and electrophysiology space.
The completion of the buyout is likely to provide a boost to Integer Holdings’ Medical business. The move will also aid the company in its efforts toward the execution of its strategy to drive growth and generate a premium valuation for shareholders.
Rationale of the Buyout
This acquisition will broaden Integer’s highly differentiated cardiovascular access and neurostimulation lead wire finished product offerings in fast-growing end markets, which are in sync with the company’s growth strategy. The integration with Oscor is expected to benefit both Integer’s customers and shareholders.
Apart from this, the buyout is likely to expand Integer Holdings’ research and development abilities as well as its manufacturing presence in the Dominican Republic, thereby further bolstering the company’s extensive global foothold and manufacturing capabilities.
Management expressed confidence in Integer Holdings’ ability to create value through acquisitions, leveraging the progress achieved in implementing strategic operational imperatives across the company.
Recent Developments
Per the company’s third-quarter earnings release in October, revenues at Medical segment improved significantly on both reported and organic basis. In addition, revenues at the Cardio & Vascular business (one of the product lines of this segment) totaled $160.9 million, up 29.1% from the prior-year quarter on a reported basis and up 29% organically. The business recorded strong sales increases across all cardio & vascular markets on the back of robust market demand, especially in the peripheral vascular and electrophysiology markets.
In September 2021, Integer Holdings announced that it will construct a new Medical Device Innovation and Manufacturing facility in the Parkmore East area of Galway to expand its presence in Galway, Ireland. This new facility is required to meet the growing demand for regional research, development and manufacturing capabilities as well as catheters and delivery systems capacity. This investment is intended to support the company’s long-term growth prospects as a result of its strategy to win in the markets it serves.
Price Performance
Shares of this Zacks Rank #2 (Buy) company have gained 7.9% in the past year compared with the industry’s growth of 6%.
Other Stocks to Consider
Some other top-ranked stocks in the broader medical space include Thermo Fisher Scientific Inc. (TMO - Free Report) , McKesson Corporation (MCK - Free Report) and AmerisourceBergen Corporation .
Thermo Fisher surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).
McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 19.9%. The company currently carries a Zacks Rank #2.
McKesson’s long-term earnings growth rate is estimated at 8.9%. The company’s earnings yield of 9.9% compares favorably with the industry’s 3.2%.
AmerisourceBergen surpassed earnings estimates in each of the trailing four quarters, the average surprise being 5.5%. The company currently carries a Zacks Rank of 2.
AmerisourceBergen’s long-term earnings growth rate is estimated at 11.3%. The company’s earnings yield of 8.9% compares favorably with the industry’s 3.3%.