Orthofix (OFIX) Launches Limb Lengthening System in US & UK
Orthofix Medical OFIX recently made the full-market launch of its FITBONE intramedullary lengthening system in both the United States and Europe. This latest development is expected to be significant in terms of the company’s strategy of global expansion of extremities business.
The FITBONE intramedullary lengthening system is already approved by the FDA and also secured a CE Mark in European countries.
FITBONE and Its Progress
FITBONE intramedullary limb-lengthening (lengthening nail) system is for deformity correction of the femur and tibia bones. This is a fully implantable system for correcting leg length and deformity discrepancies. It needs a minimally invasive implantation procedure and consists of the implanted intramedullary nail, a subcutaneously implanted receiver and an external control set that enables the patient to manage the distraction phase at home.
This was originally developed in 1997 and since then this treatment option has been successful globally. The system has more than 3,500 cases performed in 15 countries since its development. It allows achievement of axial and torsional bone alignment intraoperatively, as part of the limb-lengthening procedure.
With the full launch of FITBONE, Orthofix claims itself to be the only orthopedic company that offers a comprehensive portfolio of both internal and external fixation solutions for limb reconstruction and deformity correction. The company is encouraged that the latest full launch will broaden access to the FITBONE system globally, giving more treatment choices for deformity correction and limb lengthening.
Orthofix Extremities Amid Pandemic
Orthofix Extremities portfolio of solutions currently includes the TL-HEX TrueLok Hexapod System, computer-assisted ring fixation system for external limb lengthening, JPS JuniOrtho Plating system with the OrthoNext digital surgery planning software and the eight-Plate Guided Growth System for correcting angular growth deformities in pediatric patients.
Post the initial pandemic-led setback, this business is gradually seeing rebound, particularly in European countries such as Italy and France. However, the uptick in COVID-19 cases in many regions is once again putting pressure on elective procedures and volumes. According to the company, certain parts of trauma procedures are non-elective. However, largely, it comprises the deformity correction procedures, which are elective and can be postponed.
FITBONE, which is a deformity correction procedure, should follow the elective procedure trend till the pandemic subsides.
Price Performance
Shares of the company have gained 16.9% in the past three months compared with the industry’s 6.5% growth and the S&P 500's 15.5% rise.
Zacks Rank & Stocks to Consider
Currently, Orthofix carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Align Technology ALGN, Hologic HOLX and Abbott Laboratories ABT. While Align Technology and Hologic currently sport a Zacks Rank #1 (Strong Buy), Abbott presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has a projected long-term earnings growth rate of 19.8%.
Hologic has a projected long-term earnings growth rate of 15.4%.
Abbott has an estimated long-term earnings growth rate of 14.6%.
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