Gainesville, FL-based Exactech Inc. (NASDAQ:EXAC) recently announced that its new product, the Truliant Knee System’s surgical instrumentation has been honored with a bronze award in the 2017 International Design Excellence Awards (IDEA) in Atlanta, GA.
Sponsored by the Industrial Designers Society of America, IDEA winners receive significant international publicity and exposure. The 2017 IDEA contest noted hundreds of entries from 54 countries in six continents.
A significant development in the company’s knee segment Truliant Knee System offers advanced approaches to total knee replacement surgeries, with a clinically-recognized platform of proven implants and personalized surgical workflows.
Exclusivity of the Truliant System is embedded in its ergonomic instrumentation design, which enables surgeons to make appropriate bone cuts and adjustments to the joint during total knee arthroplasty. In the last reported quarter, Knee revenues were flat at $19.6 million, which increased 1% at constant currency.
Exactech Rides on Solid Knee Business
In July, Exactech took a step toward its goal of providing an all-inclusive range of knee replacement systems with the launch of ExactechGPS TKA PLUS. This is an advanced software application that provides systematic computer guidance to orthopedic surgeons during total knee arthroplasty (TKA) procedures.
Though Exactech might benefit from the solid prospects in the Total Knee Replacement market, it will face tough competition from the likes of Zimmer Biomet Holdings, INC. (NYSE:ZBH) , which offers the iASSIST knee Personalized Guidance System for knee replacement procedures.
Exactech plans a complete commercial launch of TKA PLUS software application in 2018. This product development is in line with the company’s objective to gain traction in the huge and untapped Total Knee Replacement market. As per data provided by GRAND VIEW RESEARCH, this market is expected to reach a worth of $12.4 billion by 2024.
Apart from solid initiatives in the knee platform, Exactech announced FDA approval to market its proprietary ExactechGPS Shoulder Application in the United States earlier this year.
Share Price Trends
Over the past six months, Exactech has been trading above the broader industry. The company’s stock has gained 20.2%, higher than the industry’s 6%. We believe that the company is currently riding high on regulatory approvals and product launches.
However, the estimate revision trend for the current quarter lacked luster over the last two months. Notably, one estimate moved south compared to no movement in the opposite direction. The Zacks Consensus Estimate for the current quarter fell 4.1% to 23 cents per share over the same timeframe.
Exactech has a Zacks Rank #3 (Hold).
Key Picks
A few better-ranked stocks in the broader medical sector are Edwards Lifesciences Corp. (NYSE:EW) and Stryker Corporation (NYSE:SYK) . Notably, Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Stryker has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. Notably, the stock represents an impressive year-to-date return of 21.9%.
Stryker represents an impressive year-to-date return of 21.1%. The stock has a long-term expected earnings growth rate of 10%.
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Stryker Corporation (SYK): Free Stock Analysis Report
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Zimmer Biomet Holdings, Inc. (ZBH): Free Stock Analysis Report
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