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RTI Surgical Collaborates with American Dental Association

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Headquartered in Alachua, FL, RTI Surgical, Inc. a global developer, manufacturer and provider of orthopedic and other surgical implants, recently announced an agreement with the American Dental Association to ‘improve track and trace of tissue implants used in dental surgeries’.

Per the terms of the strategic alliance, RTI Surgical would work on American Dental Association’s proposed technical report no. 1089, ‘Track and Trace for Human Cells, Tissues, and Cellular and Tissue-Based Products (HCT/Ps). The report primarily demonstrates inventory management issues in dental practices to resolve traceability issues between donors and recipients. In this regard, HCT/Ps are used for both bone and gum grafting and repairing in hospitals, dental practices and other medical facilities.

Per management, RTI Surgical has been a pioneer in synthetic-based implants and is currently focusing on ‘tracking and tracing of tissue implants’. The latest development is expected to enhance tissue transplantation trends and have path-breaking impact in the days to come.

Our Take

The estimate trend for RTI Surgical lack luster as analysts forecast earnings of 10 cents per share for the current year, which has narrowed down by 10 cents over the last three months. Meanwhile, a report by Markets And Markets forecasts that the dental lasers market by product (soft tissue, all tissue, dental welding lasers) will reach a worth of $224.7 million by 2020, growing at a CAGR of 5.2%, which holds considerable promise for the company.

RTI Surgical is also gaining prominence on the back of the recent string of regulatory approvals. Notably, NanOss Bioactive bone void filler, an advanced bone graft substitute of the company, recently got approved by the Australian Therapeutic Goods Administration. The company has also recently announced CE Mark approval for nanOss Bioactive Loaded bone void filler and nanOss Bioactive 3D bone void filler in Europe.

Banking on the favorable market trend and recent developments, we expect RTI Surgical to gain considerable traction in the market and also make a turnaround in the days to come.

Stocks that Warrant a Look

A few notable stocks in broader medical sector include Halyard Health Inc. , Straumann Holding AG and ABIOMED Inc. .

Halyard Health posted positive earnings surprises in the last four quarters, with the average being 25.8%. Meanwhile, a glimpse at the share price reveals an impressive one-year return of 14.2%.

Straumann has an impressive long-term expected earnings growth rate of 13%. The Zacks Consensus Estimate for earnings rose by a massive 83 cents in the current year, taking the figure to $12.09 per share.

ABIOMED posted positive earnings surprises in the last four quarters, the average being 34.9%. This stock has an impressive long-term expected earnings growth rate of 26.7%.

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