FRISCO, Texas--(BUSINESS WIRE)--
Greatbatch, Inc. (GB) today updated institutional investors and research analysts in New York City regarding its strategic evolution. The company is progressing from strictly a developer of components and sub-assemblies to an organization also capable of developing complete medical devices for OEM customers.
Speaking at the Millennium Broadway Hotel, President & Chief Executive Officer Thomas J. Hook, Senior Vice President & Chief Financial Officer Michael Dinkins and Algostim, LLC President Scott Drees focused on three topics: how the company’s core business is driving organic growth and financial performance; Algostim, its innovative, internally developed spinal cord stimulation (SCS) system which is nearing completion; and 2013 financial guidance with long-term plans to drive profitable growth.
“Ninety-five percent of all active implantable medical devices contain one or more of our proprietary component products – a core business that’s driving top line and bottom line performance,” said Mr. Hook. “In turn, this is propelling our evolution into a medical device company. Algostim, which we revealed in great detail today, illustrates the capability and capacity we’ve built to bring greater value to our customers and true innovation to their markets.”
Leveraging its extensive intellectual property portfolio of more than 1,000 patents, Greatbatch foresees high potential in the multi-billion dollar end markets it serves, specifically in cardiac and neuromodulation, portable medical, vascular and orthopaedics. Eighty-eight percent of its revenues are currently derived from the medical device sector. Based on its IP combined with enhanced sales and marketing, Mr. Hook indicated that Greatbatch is poised for significant growth opportunity through market share capture.
“We have made a considerable investment to optimize our sales and marketing organization as we deepen our relationships with the world’s leading medical technology and commercial companies,” said Hook. “This has allowed Greatbatch to secure long-term agreements while also capitalizing on increasing product life cycles.”
Greatbatch also shared extensive details regarding progress on its first complete medical device system, Algostim, a spinal cord stimulation system to treat chronic pain of the trunk and limbs. The company partnered with two world leaders in the field of neuromodulation, Dr. Richard North and Dr. Giancarlo Barolat, to develop the system. It is now evaluating commercialization partners as it plans to submit FDA PMA and CE Mark approval during the second half of 2013
“Algostim is a highly differentiated, complete SCS system and platform with extensive offering of innovation, intellectual property, advanced safety features, and future generation capabilities to serve the fast growing $1.4B SCS market,” commented Mr. Drees.
Mr. Dinkins reaffirmed the company’s guidance for 2013 of revenue in the $660 - $680 M range and adjusted diluted earnings per share in the $1.90 - $2.00 range.
“We have a strong and extremely successful core business that is generating significant cash flows,” said Mr. Dinkins. “These cash flows are enabling our strategic evolution to a medical device company which in turn will translate to profitable growth for the benefit of our investors, our customers and our Associates worldwide.”
All parties interested in Greatbatch’s strategic evolution are encouraged to view a webcast of today’s presentation that is available on the Investor Relations section of the company’s website www.greatbatch.com.
About Greatbatch, Inc.
Greatbatch, Inc. (GB) provides top-quality technologies to industries that depend on reliable, long-lasting performance through its brands Greatbatch Medical, Electrochem and QiG Group. Greatbatch Medical develops and manufactures critical medical device technologies for the cardiac, neuromodulation, vascular and orthopaedic markets. Electrochem designs and manufactures batteries for high-end niche applications in the portable medical, energy, military, and other markets. The QiG Group empowers the design and development of new medical devices for our core markets. Additional information about the Company is available at www.greatbatch.com.
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