Medical devices maker Integra LifeScience Holdings (IART) recently announced the global launch of its Zuma-C Anterior Cervical Fixation System. Based on the original Zuma platform, this product is expected to expand the company’s spine product portfolio. For several years, Zuma platform has been successfully used in the surgical procedure to remove herniated or degenerative discs in the neck.
During the second quarter of fiscal 2011, Integra registered strong sales growth in its combined Extremity Reconstruction, Spine and Orthobiologic segment, which increased 11% year over year to $80.5 million. Alongside, in May 2011, Integra acquired California-based spine fusion product provider SeaSpine.
With this purchase, the combined product portfolio has emerged as the key component under Integra’s orthopedic revenue category. Integra expects revenue contribution from the SeaSpine acquisition to be approximately $18−$20 million in the second half of 2011.
Apart from Zuma-C Anterior Cervical Fixation System, the company also added several new products to its spine portfolio, which includes Vu aPOD Prime as it does not require additional supplemental fixation. Moreover, the company launched online training programs and hired a full-time training manager.
Thus Integra is splurging all its resources to support the new product development and sales distribution. In the recently reported quarter, the company witnessed a 28.9% rise in selling, general and administrative expenses and 8.1% increase in research and development.
Moreover, Integra recently opened its spine facility in Medina, Ohio. The company aims to significantly expand its operations with this initiative. For the combined spine and orthobiologics segment, the company expects new product launches and strategic initiatives to contribute low single-digit growth (5%–7%) for FY11.
Integra is a global leader in regenerative medicine. The company’s products are used primarily in neurosurgery, extremity reconstruction, orthopedics, and general surgery to treat millions of patients in the US, Europe and the Asia-Pacific every year.
However, tighter capital spending continues to challenge the surgical instruments market. Moreover, Integra faces direct competition in the medical instruments & supplies industry from major players like Medtronic (MDT) and Stryker Corp. (SYK).
INTEGRA LIFESCI (IART): Free Stock Analysis Report
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