In line with its product pipeline expansion and development plan, recently musculoskeletal major – Integra LifeSciences Holdings Corporation (IART - Analyst Report) launched the second cobalt chrome rod for its Daytona and Malibu Spinal Systems.
According to Integra, the enhanced strength and stiffness (ESS) characteristics made this cobalt chrome rod more advanced compared with its earlier version. The company currently plans for the controlled market release of this product in the third quarter of 2013.
This new launch enhanced Integra’s product offering to a large extent with versatile solutions for spinal deformity correction procedures like multiple rod options in several of its deformity systems including titanium alloy, stainless steel and cobalt chrome. According to Integra, deformity correction is a specialized segment of the spinal fixation market with challenging cases.
Hence, product expansion in this field with broader treatment options will be hugely appreciated and accepted among patients. Accordingly, Integra is optimistic about the success of this ESS+ cobalt chrome rod.
Integra recently has made number of advancements in the field product development. Last week, the company featured the successful implantation of more than 4,000 of its IPP-ON PIP Fusion Systems. The same week, it received 510k clearance from the U.S. Food and Drug Administration (FDA) for its Proximal Humeral Fracture Plate System.
The company believes that this achievement will act as a major impetus for growth of its Extremity Reconstruction business. With the FDA approval, Integra is planning for the controlled market release in 2013.
Despite a challenging macroeconomic environment, we are encouraged by Integra’s solid performance in U.S. Extremities, which grew 8.6% to $31.3 million at constant exchange rates or CER. The company’s focus on strategic initiatives to drive growth and profitability in the orthopedic and Neurosurgery market is also quite encouraging. Several initiatives on the company’s part such as planned product launches and acquisitions are expected to accelerate sales growth for the next several quarters.
However, tighter capital spending continues to challenge the surgical instruments market. Moreover, the company believes that the medical device excise tax and new depreciation on its ERP system will temper its 2013 margin growth.
Integra currently carries a Zacks Rank #3 (Hold). However, other medical device stocks worth a look are Given Imaging , Cyberonics Inc. and Cytokinetics Inc (CYTK - Snapshot Report) . All these stocks carry a Zacks Rank #1 (Strong Buy).