NuVasive NUVA recently announced the global commercial launch of its Reline 3D posterior fixation system. This system will cater to patients with pediatric spinal deformities.
This latest launch is part of the existing Reline System product line and will broaden NuVasive’s complex spine portfolio.
Reline 3D at a Glance
The Reline 3D system is used for the treatment of adolescent idiopathic scoliosis (AIS). It involves intricate surgical techniques to tackle three-dimensional deformity present in the spine. The technique combines multi-step, single-plane correction, into one holistic procedure helping surgeons to overcome operating room inefficiencies.
Traditionally, three-dimensional spinal deformities in pediatrics have been addressed by treating the coronal, sagittal, and axial planes separately. Reline 3D however, is designed to provide simultaneous, three-dimensional deformity correction, through a simplified procedure, offering surgeons versatility without sacrificing a reproducible surgical experience.
Other than Reline 3D, NuVasive’s Reline System portfolio has products like Reline Open, Reline MAS, Reline Trauma and Reline Small Stature.
At present, Reline 3D is commercially available in the United States and European markets. It is expected to be launched in other countries next year.
Going by a NCBI study, AIS treatment occupies a large portion of the spinal deformity fixation space as it is the most common type of scoliosis, affecting 2%–4% of adolescents. This mainly involves children between 10 and 18 years of age.
NuVasive believes that with the launch of Reline 3D, it will be able to better address the AIS patient population.
A Peek Into NuVasive’s Global Spine Business
According to NuVasive, the International region holds tremendous growth opportunity for the company. In the last-reported quarter, despite coronavirus-led market disasters, the company registered international revenue growth of 4.1% year over year at CER. This was driven by mid-double-digit growth in Asia-Pacific, led by Japan, where COVID-19 impact was nominal in this period. Europe too delivered low single-digit net sales growth. Other regions continued to experience decent volumes through March.
The company looks forward to expanding NuVasive spine and specialized orthopedic portfolios globally beyond pediatric.
Over the past six months, NuVasive has underperformed its industry. The stock has lost 25.1% against the industry's 9.6% decline.
Zacks Rank & Key Picks
NuVasive currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Quest Diagnostics Incorporated DGX, Hologic, Inc. HOLX and QIAGEN N.V. QGEN.
Quest Diagnostics’ long-term earnings growth rate is projected at 7.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic’s long-term earnings growth rate is estimated at 7%. The company presently has a Zacks Rank #2.
QIAGEN’s long-term earnings growth rate is estimated at 12.2%. It currently sports a Zacks Rank #1.
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