Gainesville, FL-based Exactech Inc. (EXAC - Snapshot Report) recently announced the first successful surgery using the Vantage Total Ankle System, an exclusive platform in the company’s extremities product-line for treating ankle implants.
The accomplishment of the surgery marked the successful entry of Exactech in the Ankle and Foot market as Vantage is the first product of its kind in the space. Notably, the system got approved by the FDA earlier this year and is expected to be available in markets by 2017.
Exactech has already been a leading platform in knee and hip technologies and is now set to enter the ankle and foot market. Of the recent developments, various studies of the company got featured in the 29th Congress of The International Society for Technology in Arthroplasty (ISTA), a nonprofit organization which promotes public awareness for arthroplasty. All the studies registered accurate and successful results supporting the knee, shoulder and other computer-assisted surgery technologies, enhancing the company’s growth prospects.
Per management, the Vantage platform is highly exclusive as it focuses on both anatomic talar and tibial components with minimal bone resection. In this regard, the main bones of the ankle region are the talus (in the foot), the tibia and the fibula (in the leg). Notably, Vantage is reproducible and operates in a ‘surgeon-friendly technique’.
Coming to share price movement, Exactech witnessed a notable decline of 1.5% to $26.57 following the news. A further analysis however show bullish market sentiments as Exactech posted a promising year-to-date return of 46.4%, way better than the S&P 500’s 4.34% over the same time frame. The recent development would further enhance the company’s growth prospects in our view.
We believe Exactech is set to gain significant market traction in the coming quarters, taking the global market sentiments into consideration. In this regard, the global market for foot and ankle devices is forecasted to reach a worth of $ 5.41 billion by 2020, growing at a CAGR of 7.2%, as per a report by the ‘Markets And Markets’, a significant positive for the company.
Zacks Rank & Key Picks
Currently, Exactech has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Cepheid Inc. (CPHD - Analyst Report) , AngioDynamics Inc. (ANGO - Analyst Report) and Nrvro Corp. (NVRO - Snapshot Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cepheid has a long-term expected earnings growth rate of approximately 21.3%. Notably, the stock represents an impressive year-to-date return of 44.3%.
AngioDynamics has a long-term expected earnings growth rate of 15.00%. The company posted a solid year-to-date return of 40%.
Nevro has an expected earnings growth of 30.00%. The company posted a stellar year-to-date return of almost 46.8%.
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