Shares of medical technology developer Integra LifeSciences Holdings Corporation (IART) attained a new 52-week high of $53.86 in mid-day trading on Dec 23. The bullish run reflects an expanding product portfolio, innovative product pipeline and impressive third-quarter 2014 results.
The company’s shares eventually closed at $53.36 on the day, translating into a decent one-year return of around 13% and a year-to-date return of roughly 12%. This Plainsboro, NJ-based company has a market cap of around $1.75 billion while average volume of shares traded over the last three months stands at roughly 0.2 million.
Over the last few months, the company has launched back-to-back products which we believe will enhance the overall product portfolio and also usher in more profitability for the company.
Recently, Integra LifeSciences launched its Integra Meshed Dermal Regeneration Template which will expand the company’s skin and wound product line. Last month, the company reported a controlled market release of the Integra Expandable Interbody System and the Demineralized Bone Matrix Strip in the U.S. Both the interbody and the orthobiologic devices are expected to help Integra LifeSciences gain traction in the evolving interbody and spine market.
The company reported an impressive third-quarter 2014, with adjusted earnings of 76 cents per share steering past the Zacks Consensus Estimate of 74 cents. Revenues increased 7.7% year over year to $229.7 million, driven by strong growth in the company’s global neurosurgery business.
Integra LifeSciences’ global skin and wound franchise also reported double-digit growth in the quarter. The expansion of sales force and the addition of new skin specialists, coupled with the launch of Integra’s new thin skin product line aided the double-digit growth in this segment. Further, management expects to make incremental investments in sales capabilities in this area in 2015.
However, the company faces a stiff hospital capital spending environment. Also, the broader medical sector has quite a number of peers who are vying for better market traction. It remains to be seen whether the new range of products and services at Integra LifeSciences can counter competition from similar offerings of companies like Johnson & Johnson (JNJ), Stryker Corp. (SYK) and Zimmer Holdings, Inc. (ZMH).
Currently, Integra LifeSciences carries a Zacks Rank #3 (Hold).
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