Baxter International Inc.
’s (BAX - Free Report
) Actifuse Flow Bone Graft Substitute recently received FDA clearance. This development is expected to boost the company’s surgical portfolio under the Advanced Surgery business.
Following the announcement, the share price of Baxter inched up 0.8% to $74.52 at close. We believe such developments will provide cushion to the stock which has rallied 17.8% compared with the industry
’s 18.6% rise in a year’s time.
The stock carries a Zacks Rank #3 (Hold).
The Actifuse Flow Bone Graft Substitute is the latest addition to Baxter’s osteobiologics surgery portfolio, which also includes Actifuse ABX, Actifuse Shape, Actifuse MIS and Altapore. The Actifuse family of products has been designed to provide control of bone graft placement throughout the surgerical procedure. Management expects Actifuse to be useful in a variety of orthopedic surgeries in the pelvis, extremities and posterolateral spine.
However, management has confirmed that Actifuse Flow bone graft substitute has not been cleared for vertebroplasty.
Per a study by Allied Market Research, the global bone graft and substitutes market is expected to reach $3,397 million by 2022, at a CAGR of 4.1%. Increase in incidence of bone and joint disorders and technological advancements in the medical field drive the market.
Thus, the latest development has been a well-timed one for the Illinois-based medical giant.
A Peek In to the Advanced Surgery Unit
Baxter’s surgical portfolio offers a wide range of devices and pharmaceuticals, including haemostats and sealants to transform surgical efficiency, safety and recovery.
In the last reported quarter, Baxter experienced double-digit growth in its Advanced Surgery business on solid international performance and the addition of RECOTHROM and PREVELEAK, which contributed $17 million.
In fact, Baxter expects Advanced Surgery revenues to grow 8% to 9% at constant currency in 2018.
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