Symmetry Surgical Inc., the wholly-owned subsidiary of orthopedic implants and instruments maker Symmetry Medical (SMA), recently launched additional neurosurgical line extensions for its Micro Instruments product portfolio. Management believes that the new instruments will benefit neurosurgeons by improving surgical efficiency and clinical results.
The complementary extensions were showcased at the American Association of Neurological Surgeons (“AANS”) meeting in Miami in April 2012.
Symmetry added the Micro Instruments portfolio with its acquisition of the surgical instruments business of Codman & Shurtleff Inc. ("Codman"), a Johnson & Johnson (JNJ) enterprise. The new products include an instrument tray that can hold the entire set of 33 micro instruments. The tray is specially designed to protect the 2 millimeter bayonetted shafts of the Micro Instrument. The innovative shelf and base of the tray are expected to keep instruments in order during neurosurgical procedures.
Symmetry, in December 2011, completed its acquisition of the surgical instruments portfolio of Codman & Shurtleff. Following the closure of the transaction, the integrated direct general surgical instruments operation, Specialty Surgical Instrumentation ("SSi"), was renamed “Symmetry Surgical”.
Revenues, in the most recent quarter, from the smaller Symmetry Surgical unit soared almost threefold to $26.7 million, buoyed by the Olsen Medical and Codman & Shurtleff acquisitions, which contributed roughly $16.1 million to the division’s sales.
Symmetry is the largest original equipment manufacturer (“OEM”) provider of implants and related surgical instruments and cases to orthopedic devices manufacturers. Its major customers include Johnson & Johnson’s DePuy, Stryker (SYK) and Zimmer Holdings (ZMH).
However, Symmetry still faces price and procedure volume pressure on the orthopedic front. Also, the company’s high spending may continue to weigh on its bottom line. Currently, we have a Neutral recommendation on Symmetry. The stock currently retains a short-term Zacks #2 Rank (Buy).
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