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Integra LifeSciences Rides on Product Launch, Faces Rivalry

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On May 14, we issued an updated research report on Integra LifeSciences Holdings Corporation (IART - Free Report) . The company has been noticing certain major developments overseas. However, a tough competitive landscape is concerning.

This New Jersey-based company is a leading developer, manufacturer and marketer of surgical implants and medical instruments for use in neurosurgery, extremity reconstruction, orthopedics and general surgery.

Shares of this Zacks Rank #3 (Hold) company have outperformed its industry over the past three months. The stock has slid 1.9% compared with the industry’s 5.6% fall.

Integra LifeSciences exited the first quarter of 2019 with a strong organic revenue performance. Within Orthopedics business, organic growth was generated one quarter ahead of schedule, banking on an improved sales force effectiveness, product introductions and double-digit growth in both ankle and shoulder product lines.

Benefiting from product launches and an enhanced sales force performance, the company expects faster organic growth in the second half of 2019. Within Codman Specialty Surgical segment, the company is currently working on the launch of seven products including an intracranial pressure monitor, CereLink.

In this segment, the company realigned 100% of in-patient wound reconstruction and orthopedic territories as part of its channel extension strategy. At the end of the first quarter, Integra LifeSciences noted that the operating performance of each franchise was in line or slightly better than the company’s expectations. Per plan, Integra LifeSciences is now running the entire Codman Specialty Surgical business independently in the United States, Canada, Australia, New Zealand and China.

Meanwhile, Integra LifeSciences faces severe competition in the surgical implants and medical instruments market. The company needs a consistent innovation to deflect rivalry. Moreover, consolidations in the industry could induce an intense pricing pressure.

Key Picks

Some better-ranked stocks in the broader medical space are Stryker Corporation (SYK - Free Report) , CONMED (CNMD - Free Report) and DENTSPLY SIRONA Inc (XRAY - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stryker’s long-term earnings growth rate is projected to be 10.1%

CONMED’s long-term earnings growth rate is expected at 13.3%.

DENTSPLY SIRONA’s long-term earnings growth rate is predicted to be 11.5%.

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