Plainsboro NJ-based Integra LifeSciences IART, one of the world leaders in regenerative medicine, recently broadened its extremity product line with the launch of its Titan Press-Fit Reverse Shoulder for Fracture. In addition to its famous Titan Shoulder product line, the latest Titan Reverse is a major advancement compared with the other reverse shoulder products.
Notably, the demand for reverse shoulder products has been increased to treat humeral fractures, in the recent past. However, it has been observed that heat from cement that is used to secure the prosthesis might hinder healing of the bone, thereby negatively impacting the patients.
But according to Integra, this problem can be easily dodged through the use of Titan Reverse, which does not require cement for fixation. Instead it has a two-piece stem that achieves a direct implant-to-bone press-fit fixation below the fracture line in the humeral canal.
We note that, the company continues to observe considerable progress in its worldwide extremely product line. In fact, in the last reported fourth-quarter 2016, Salto Talaris and Cadence ankles together with Titan Shoulder product lines increased in double digits. Moving ahead, management also expects to gain market share with some new product introductions that include Integra Fin-Lock Glenoid for the Titan Modular Shoulder System. The latest introduction in this niche is also expected to further bolster the company’s market share.
Nonetheless, the company’s latest share price performance reflects a bearish sentiment. Over the last one month, Integra Lifesciences consistently traded below the Zacks categorized Medical - Biomedical and Genetics sub-industry market. Additionally, a dull fourth-quarter announcement in February pulled the trend lower than the industry. Till now, the stock has declined 2.04% lower than the broader industry gain of 2.51%. Factors such as rise in operating expenses, expected integration costs of Derma Sciences and pre-closing costs for Codman Neurosurgery acquisition are also believed to have had a negative impact on Integra’s share price.
We believe that a consistent series of product launch in the growing extremity business may help the company to improve its price performance, going ahead.
Zacks Rank & Key Picks
Integra currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product sector are Inogen, Inc. INGN, Bovie Medical Corporation BVX and Cardiovascular Systems, Inc. CSII. While Inogen sports a Zacks Rank #1 (Strong Buy), the other two companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen gained 77.3% in the last one year in comparison with the S&P 500’s gain of 16.7%. The company has a stellar four-quarter average earnings surprise of over 49.08%.
Bovie Medical surged 49.4% in the last one year in comparison with the S&P 500. It has a four-quarter average earnings surprise of 28.7%.
Cardiovascular Systems gained over 100% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years, compared to the industry average of 15.2%.
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