Baxter International Inc. (BAX - Free Report) recently announced that the FDA has approved its ALTAPORE Bioactive Bone Graft, a next-generation bone graft substitute for spine surgeries.
Per management, ALTAPORE had earlier received clearance for use in orthopedic surgical procedures in the extremities and pelvis. The company expects to start selling ALTAPORE in the United States by the end of 2018.
Interestingly, Baxter’s Actifuse Flow Bone Graft Substitute also received the FDA clearance earlier this month. (Read More: Baxter's Actifuse Flow Bone Graft Substitute Gets FDA Nod)
Clearly, the series of regulatory approvals fortify Baxter’s position in the bone graft and substitutes market.
A new addition to Baxter’s portfolio of surgical products, ALTAPORE Bioactive Bone Graft is designed to meet surgeons’ needs. It is easy to store, handle and implant, which makes it a versatile tool for surgeons.
Notably, Baxter’s growing surgical portfolio includes Actifuse Shape, Actifuse MIS, Actifuse ABX, Actifuse Flow, COSEAL Surgical Sealant, FLOSEAL Hemostatic Matrix and other products.
For investors’ notice, Baxter has an Advanced Surgery unit, which has driven its top line since the last two quarters.
Advanced Surgery at a Glance
Baxter’s Advanced Surgery products are trusted across a variety of specialties, including neurological, spinal, cardiovascular, bariatric, gynecological, orthopedic and reconstructive microsurgery.
In the last reported quarter, the company experienced double-digit growth in the segment, driven by solid international performance and the addition of RECOTHROM and PREVELEAK that contributed $17 million of sales.
Notably, Baxter had completed the acquisition of two hemostat and sealant products from Mallinckrodt plc., earlier this year.
Grand View Research validates that the global bone grafts and substitutes market was valued at $2.4 billion in 2016 and is expected to register a CAGR of 5.5% by 2025.
Constantly rising geriatric population is one of the primary factors responsible for driving the market.
Over the past six months, shares of Baxter have rallied 20.5% compared with the industry’s rise of 19.1%. The current level is also higher than the S&P 500 index’s increase of 12.2%.
The stock carries a Zacks Rank #2 (Buy).
Other Key Picks
Other top-ranked stocks in the broader medical space are athenahealth (ATHN - Free Report) , Masimo Corporation (MASI - Free Report) and Veeva Systems (VEEV - Free Report) .
athenahealth has a long-term expected earnings growth rate of 17.6% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank 2.
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