Orthofix (OFIX) Advances in ALIF Procedure With New Launch
Orthofix Medical Inc. OFIX, a prominent spine and orthopedics company, recently made the full commercial launch of its WaveForm A interbody implant for Anterior Lumbar Interbody Fusion (ALIF) procedures. The WaveForm A interbody implant claims to seamlessly integrate with the company's Meridian ALIF system to treat patients with degenerative disc disease.
This latest development is part of the company’s product innovation initiative.
More on Meridian With WaveForm A
The WaveForm A interbody features a proprietary wave-like design, providing a balance of strength, porosity and stability, along with a large implant graft aperture for bone graft material. This unique balance enables improved bone packing, reduced stiffness and enhanced imaging properties.
Per Dr. Tayyab of Girard Orthopaedic Surgeons, advanced implants like WaveForm A interbody can help stimulate a better bone growth response, thereby giving greater confidence to the surgeon about a successful fusion.
On the other hand, the Meridian ALIF system is designed to be a modular instrument and implant system to streamline the ALIF procedure and provide diverse fixation options for single to multilevel ALIFs in a fewer number of sets. The Meridian ALIF system is compatible with WaveForm A interbody and the Reef A interbody. The Reef A interbody features Orthofix’s proprietary NanoMetalene surface technology and Reef Topography.
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Strategic Significance and Market Prospect
Orthofix Medical's president of Global Spine, Kevin Kenny, is optimistic about the addition of the WaveForm A interbody to the company’s ALIF solutions, enabling surgeons to provide streamlined options and deliver better outcomes for their patients.
According to Orthofix, with the launch of WaveForm A, the Meridian system can more effectively address the approximately $200 million ALIF market segment in the United States.
Per a market research report by Data Bridge Market Research, the anterior lumbar interbody fusion (ALIF) market is projected to witness a CAGR of around 5.80% during the forecast period of 2021-2028. The growth is expected to be primarily driven by the increasing prevalence of ALIF procedures, advancements in MedTech research and development, adoption of advanced healthcare technologies and the growing demand for minimally invasive surgeries.
Accordingly, we believe the latest commercial launch of WaveForm A to be well-timed and strategic.
Recent Developments by OFIX
Recently, Orthofix invested in the realignment of the Bone Growth Therapies division sales and sales management teams to expand the organization and to bring more dedicated focus to each of the spine and fracture management channels. This positioned the company well to take advantage of the anticipated cross-selling opportunities in spine following the merger and to expand market share in fracture management following the launch of AccelStim. Within the spine channel, the company generated growth from SpineStim and CervicalStim, the only PMA-approved cervical Bone Growth Stimulator device in the U.S. market.
In the last-reported first quarter, Orthofix announced the full commercial launch of the Mariner Deformity Pedicle Screw System, an extension of the company’s foundational Mariner technology platform, which will address the unique clinical requirements of complex adult deformity in spine cases.
In addition, the company expanded access solutions for the $1.8 billion minimally invasive spine procedures market with the full launch of the Lattus Lateral Retractor System (which optimizes the lateral procedure to provide access to challenging anatomy during surgery) and the Fathom Pedicle-Based Retractor System (which allows the surgeon to control the precise length of each blade and dial in a customized lateral medial tilt, providing a rigid construct to address each patient’s unique anatomy).
Price Performance
In the past year, Orthofix has underperformed in its industry. The stock declined 21.4% compared with the industry’s 18.3% decline.
Zacks Rank and Key Picks
Orthofix currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical space are CONMED CNMD, Merit Medical Systems, Inc. MMSI and Boston Scientific Corporation BSX.
CONMED, carrying a Zacks Rank# 2 (Buy), has an estimated long-term growth rate of 19.4%. The company’s earnings surpassed estimates in two of the trailing four quarters, missed once and met in another, delivering a negative average surprise of 10.54%.
CNMD’s shares have risen 54.2% in the past year compared with the industry’s 21.3% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merit Medical, currently carrying a Zacks Rank #2, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20.2%.
Merit Medical has improved 60.2% compared with the industry’s 21.3% growth over the past year.
Boston Scientific, presently holding a Zacks Rank #2, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed twice, the average surprise being 1.9%.
Boston Scientific has gained 50.1% against the industry’s 19.2% decline over the past year.
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