Integra Lifesciences Holdings Corp (IART), NuVasive, Inc. (NUVA), CareFusion Corporation (CFN): A Solid Orthopedic Implants Manufacturer

Page 1 of 2

The orthopedic implants market is a growing segment with increasing demand for extremities, spine, and orthobiologics. Large companies like Depuy/Synthes from Johnson & Johnson, Medtronic, Zimmer, and Stryker are majority players in the market. However, the sector offers opportunities for small and mid-sized players with cost-efficient operations and competitive pricing. New Jersey-based Integra Lifesciences Holdings Corp (NASDAQ:IART) is a mid-sized company that offers a wide range of products, devices, and instruments for orthopedic and neurosurgery.

Integra Lifesciences Holdings Corp

Background

Integra Lifesciences Holdings Corp (NASDAQ:IART), a $1.07 billion medical technology company, is a leading provider of surgical instruments to hospitals, surgery centers, and clinics in the U.S. The company primarily develops, manufactures, and markets surgical implants and medical instruments for neurosurgery, orthopedic extremity, spine, and reconstructive surgery. The company has a patented technology to develop soft tissue products.

Integra Lifesciences Holdings Corp (NASDAQ:IART) offers products in three core businesses including regenerative products (soft tissue products), medical devices, and instruments that can be used in neurosurgery, orthopedic, and general surgery. It develops soft tissue products based on its proprietary collagen matrix and de-mineralized bone matrix technologies. The tissue-engineered products are approved by the FDA to use in neurosurgery, orthopedic, and general surgery.

Key target market

Around 100 million people in the U.S. and nearly 2 billion worldwide suffer from brain or nervous system disorders. These include depression, anxiety, epilepsy, Alzheimer’s, Parkinson’s, and other related disorders. The market growth is driven by increasing neurological disorders and technological advancement. The market is largely captured by J&J, Medtronic, and Stryker. Integra Lifesciences Holdings Corp (NASDAQ:IART) offers a variety of products used in neurosurgery. Of these, systems are used to measure various brain parameters, devices to access brain and clean excess liquid from the brain; tissue repair through ultrasonic surgery systems, and dural grafts to repair the brain’s internal structure.

Orthobiologics is a growing segment within the orthopedic market. The U.S. orthobiologics market is expected to grow at a compounded annual growth rate of 15% to reach $6 billion in 2016. The growth is primarily driven by increasing elderly population, higher obesity, rising sports injuries and road accidents, and increasing patients’ awareness toward novel products. Technological advances such as nanotechnology will support growth in the industry. Besides large players, medium-sized companies like Wright Medical, NuVasive, Inc. (NASDAQ:NUVA), and Integra Lifesciences Holdings Corp (NASDAQ:IART) have some presence due to their innovative products and technologies. Integra develops products for bone repair made from its owned de-mineralized bone matrix technology.

Around 10 million adults in the U.S. suffer from chronic back pain each year. The majority have pain due to compression of nerves either in the spine or legs. In most cases, patients are treated with painkillers, physical therapy, steroid injections, or are suggested to change their lifestyle. However, lately the spine market isn’t doing all that well in the U.S.

Integra’s competitive landscape

In spine surgery, Integra competes with NuVasive, Inc. (NASDAQ:NUVA), the fourth-largest player in spine segment globally. The company offers a comprehensive range of spine products (more than 80 unique products) used for spine surgery. Its Maximum Access Surgery, or MAS, platform is used for lateral spine fusion. The company has a strong cash balance of $272.7 million, which will comfortably see it through growth and R&D in the near future. However, the company is facing multiple Medicare-related lawsuits, and analysts are not sure how it can hit a 20% growth in operating margins as predicted by management.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!