NuVasive's Monolith Corpectomy System Ok'd for Expanded Use
NuVasive, Inc. NUVA recently received the FDA’s 510 (k) clearance for expanded use of its Monolith Corpectomy System to include cervical corpectomy procedures. The Monolith Corpectomy System can now be used for procedures in the cervical spine (C3-C7 vertebral bodies) for treating a diseased or damaged vertebral body caused by fracture, tumors, osteomyelitis. It can also be used to support reconstruction following corpectomy done to achieve decompression of the spinal cord and neural tissue in cervical degenerative disorders.
Earlier, NuVasive's Monolith Corpectomy System was approved by the FDA for indicated use in thoracolumbar corpectomy procedures in 2015. We believe the expanded approval will help augment NuVasive’s customer base and boost top-line contibutions from the U.S. Surgical Support business in the near term.
Market Potential
Per a report by Becker’s Spine Review, the global minimally-invasive spine surgery market is expected to see a CAGR of 7.6% between 2017 and 2021. Per a report by Technavio, the global spinal implants market is likely to witness a CAGR of roughly 6% in the 2016-2020 period.
Given the current market potential, we believe the company is on track to gain traction. We also believe that an ageing population, unhealthy lifestyle, rising awareness and expenditure in healthcare will continue to drive growth this minimally-invasive spine surgery market.
A Glimpse of U.S. Surgical Support business
In the recently reported quarter, revenues at the U.S. Surgical Support business were $72.6 million, up 17.1% year over year on strong services business and better-than-expected performance by Biologics. Excluding the $5 million contribution from the SafePassage acquisition, organic U.S. Surgical Support revenues grew 10%.
Share Price Movement
Over the past six months, NuVasive has outperformed its industry. The stock has gained 5.9% against the industry’s 1.8% fall.
Zacks Rank & Key Picks
NuVasive has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Veeva Systems VEEV, Integer Holdings Corporation ITGR and Surmodics, Inc SRDX.
Veeva Systems’ long-term earnings growth rate is estimated at 19.2%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Integer Holdings has an earnings growth rate of 30.3% for 2018 and a Zacks Rank #2 (Buy).
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2.
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