Integra LifeSciences Holding Corporation IART recently struck a crucial partnership deal in the growing field of data analytics pertaining to wound care. The company got associated with Tissue Analytics, which is a developer of AI-powered software solutions for chronic wound management.
However, financial terms of the deal have been kept under wraps.
Is the Deal Strategic Fit?
Integra LifeSciences considers this alliance to be aptly strategic as this is going to combine the company's skill in developing wound repair products with Tissue Analytics' advanced digital capabilities in a clinical trial setting.
Per Integra LifeSciences, the modern health industry is perceiving a massive transformation in clinical trial setting from traditional paper forms to electronic data capture in order to enable better data accessibility, compliance, security and organization. However, lack of quality data available for wound assessment disrupts the system. Accordingly, visual approximations and error-prone ruler measurements are routinely put to use for evaluating conditions like chronic wounds, burns and pressure ulcers.
Against this backdrop, Integra LifeSciences expects its collaboration with Tissue Analytics to add immense value as the latter’s software solutions that employ artificial intelligence, automatically and objectively extract high quality data from clinical images. Tissue Analystics’ objective data capture system used in a multicenter, randomized, parallel-group study, will align with Integra LifeSciences’ trend of using evidence-based practices in its products.
Recent Breakthroughs in Tissue Technologies
Of late, Integra LifeScinces is generating strong revenues within its core tissue portfolio including products like Integra Bilayer Skin, PriMatrix and SurgiMend. The company is currently investing in projects for capacity expansion to support stronger demand for regenerative portfolio following 2018’s channel extension and realignment strategy. These investments are largely complete and are expected to accelerate the company’s Acute Wound Reconstruction and Advanced Wound Care and Surgical Reconstruction businesses during the second half of 2019.
In terms of new product development, the company recently cemented its CUSA Clarity technology platform with the launch of a handpiece in an array of advanced surgical tips. With the aid of CUSA Clarity’s enhanced efficiencies and its leading tissue capabilities, surgeons can now remove both bone and challenging tissues faster than any competitive product in the same space.
Share Price Performance
Shares of the company have underperformed its industry over the past three months. The stock has dipped 0.8% against the 2.3% growth of the industry.
Zacks Rank & Key Picks
Integra LifeSciences currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are Teleflex Inc. TFX, Penumbra PEN and Bruker Corporation BRKR, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Teleflex’s long-term earnings growth rate is expected to be 13.7%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
Bruker’s long-term earnings growth rate is estimated at 12.6%.
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