Medtronic plc (MDT - Free Report) recently announced the launch of the Grafton demineralized bone matrix (DBM) bone grafting product in Japan. It is used for spinal and orthopedic procedures. The launch came on the heels of the PMDA (Pharmaceuticals and Medical Devices Agency) approval acquired by the company last August.
Medtronic is confident about a successful rollout of this product in Japan which happens to be the world’s second largest market for spinal devices used in medical procedures. Notably, Grafton DBM is the first and only demineralized bone matrix product accessible in Japan.
About Grafton DBM
Grafton DBM serves the three-pronged purpose as a bone graft extender, bone graft substitute and bone void filler of the skeletal system. This product falls under Medtronic’s biologics segment.
It is the most clinically-verified and widely-used osteoinductive bone graft product in the market. The product will be launched in Japan in various unique forms like Grafton putty, Grafton matrix and Grafton strip.
The worldwide bone grafts and substitutes market is projected to reach a value of $3.9 billion by 2025, progressing at a CAGR of 4.8% during the forecast period of 2017-2025. The rise in demand can be attributed to a growing incidence of orthopedic cases caused by fragile bones. Considering these bountiful prospects, the launch is strategically-timed. The product already has a wide commercial market in the United States, Korea, Australia, Latin America, Middle East and parts of Europe.
Medtronic Biologics at a Glance
Within Medtronic’s restorative therapies segment, global Spine revenues and U.S. Core Spine revenues witnessed growth in the mid-single digits on a constant currency basis. Revenue growth within the posterior cervical segment was attributed to the continued launch of the Infinity OCT System.
Some of the recent developments within the biologics segment of Medtronic are the INFUSE Bone Graft, and other DMB products like MagniFuse, PROGENIX and MASTERGRAFT family of synthetic bone graft.
Over the past year, Medtronic’s stock has outperformed the industry it belongs to. The stock has gained 15.5%, while the industry rose 7.2%.
Zacks Rank & Key Picks
Medtronic has a Zacks Rank of 3 (Hold). A few better-ranked stocks in the broader medical space are ABIOMED, Inc., (ABMD - Free Report) , Varian Medical Systems, Inc. (VAR - Free Report) and Masimo, Inc. (MASI - Free Report) . Notably, each of these stocks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ABIOMED’s long-term earnings growth rate is expected at 27.67%.
Varian’s long-term earnings growth rate is projected at 8.00%.
Masimo’s long-term earnings are projected to grow 15.60%.
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