LaunchPad Medical, LLC recently entered into a definitive license agreement with Stryker Corporation SYK for the latter’s bone adhesive technology, which is currently covered by four issued and three pending U.S. patents.
Under the terms of the newly inked deal, LaunchPad Medical has received an exclusive global license to commercialize Stryker’s technology. However, the financial terms of the deal have not been revealed.
LaunchPad Medical intends to use Stryker’s technology to repair damaged teeth and bones. The unique synthetic biomaterial, known as Tetranite, is designed to provide prompt fixation of bone to bone and bone to metal.
Notably, this technology has been previously used in multiple pre-clinical animal studies. Results from these studies validate that the adhesive is adept in repairing bone fractures and securing implant devices. Data from the studies have also shown that with time, Tetranite is reabsorbed and replaced with new bone.
LaunchPad, at first, plans to use the technology in the dental market, wherein the adhesive will be used to ease the process of dental implants. The technology will then later be extended to orthopedic applications.
According to a report by Decision Resources Group, the global market for bone cement and accessories is projected to expand from $630 million in 2013 to over $1 billion by 2022. While the U.S. market will be the largest contributor of revenues, emerging markets like India, Brazil and China promise substantial growth.
Stryker’s bone adhesive technology is expected to aid LaunchPad gain higher market share. Alongside, the bone adhesive market is also poised to benefit largely from this advanced technology.
From Stryker’s perspective, the partnership with LaunchPad will give its technology greater visibility in the global market. Additionally, granting of a license for a technology that is covered by multiple key patents will mean substantial license revenues for Stryker, which in turn, will bolster top-line growth.
Zacks Rank
Currently, Stryker has a Zacks Rank #3 (Hold). Better-ranked medical stocks at the current moment include AMN Healthcare Services AHS, Cancer Genetics CGIX and INC Research Holdings INCR. All the stocks sport a Zacks Rank #1 (Strong Buy).
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