NuVasive, Inc. (NUVA - Free Report) recently received the FDA’s 510 (k) clearance for its COHERE Porous PEEK implant to be used in eXtreme Lateral Interbody Fusion (XLIF) surgical spine procedures. The company plans to launch COHERE XLIF in the United States in the second quarter of 2019. Following the news announcement, the share price of NuVasive rose 1.3% to close at $59.02 on Nov 8.
Notably, NuVasive’s Porous PEEK technology offers a three-dimensional architecture in conjunction with PEEK’s radiolucent properties. COHERE XLIF happens to be the first buildout of a Porous PEEK implant by NuVasive and also shows strategic expansion of the company’s Advanced Materials Science technologies into NuVasive’s complementary procedures.
Per a report by Becker’s Spine Review, the global minimally-invasive spine surgery market is expected to see a CAGR of 7.6% between 2017 and 2021. Per a report by Technavio, the global spinal implants market is likely to witness a CAGR of roughly 6% in the 2016-2020 period.
Given the current market potential, we believe the company is on the right track to gain traction. We also believe that an ageing population, unhealthy lifestyle, rising awareness and expenditure in healthcare will continue to drive growth this minimally-invasive spine surgery market.
A Glimpse of the U.S. Spinal Hardware Business
In the recently reported quarter, revenues at the U.S. Spinal Hardware business increased around 7% to $146.1 million, driven by launches of modular 3D printed titanium implants for TLIF and XLIF, Porous PEEK offerings, expanded PLF implant offerings and RELINE Small Stature in the United States. The latest development is expected to boost top-line contributions from the segment.
Share Price Movement
Over the past year, NuVasive has outperformed its industry. The stock has gained 6.3% versus the industry’s 1.2% rise.
Zacks Rank & Key Picks
NuVasive has a Zacks Rank #4 (Sell).
A few better-ranked stocks in the broader medical space are Stryker Corporation (SYK - Free Report) , Masimo Corporation (MASI - Free Report) and Veeva Systems (VEEV - Free Report) .
Stryker has a long-term expected earnings growth rate of 10% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masimo’s long-term earnings growth rate is projected at 14.6%. 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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