Integra LifeSciences At 52-Week High On Solid Q1 Results

Shares of Integra LifeSciences Holdings Corporation (NASDAQ:IART) rallied to a new 52-week high of $80.33 on Jul 1, closing a tad bit lower at $80.15. This represents a strong one-year return of about 32.41 %, much better than the S&P 500’s 1.65% over the same time frame.

Currently, Integra LifeSciences carries a Zacks Rank #2 (Buy). The stock has a market cap of $2.98 billion and a long-term expected earnings growth rate of 11.86%.

Integra LifeSciences posted a strong performance in the first quarter of 2016 beating the Zacks Consensus Estimate in terms of both earnings and revenues. Historically, the company has continued to expand through investments in innovative product development and geographic expansion in the U.S and other parts of the world and strategic acquisitions.

We note that, Integra LifeSciences has two major reportable segments -- Specialty Surgical Solutions, and Orthopedics and Tissue Technologies. Notably, 80% of the company’s products enjoy solid market traction owing to the favorable product mix.

Currently, in terms of product development, the company is looking forward to its launch of Fin-Lock Glenoid, the latest addition to the company’s existing Titan Modular Shoulder System. This addition will give further boost to the company’s existing premier shoulder arthroplasty portfolio.

Earlier, the company has also mentioned about other product introductions at the company’s Extremities franchise, such as X-Fix (20:12) and a new version of Panta – Integra’s leadership product for internal fixation. These additions are expected to rake in higher revenues in the rest of 2016 and beyond.

The company’s regenerative portfolio under its Specialty Surgical Solutions, and Orthopedics and Tissue Technologies segments, also acts as a catalyst. Earlier during the first quarter earnings release, the company declared its plans to commercialize HuMend by mid-2016 in Northern America post its partnership with Allosource in the field of Acellular dermal matrices. Moreover, the recent FDA clearance for Integra Omnigraft Dermal Regeneration Matrix served as a major growth driving factor.

Meanwhile, the MicroFrance buyout and increased uptake of the MAYFIELD2 Cranial stabilization device in Asia Pacific have helped Integra LifeSciences gain a competitive edge in the market. Notably, the agreement between Integra LifeSciences and Vomaris Wound care Inc. is likely to drive sales across the globe.

Moreover, Integra Dermal Regeneration Template (IDRT) gained FDA approval for the treatment of diabetic foot ulcers (DFU), marking a milestone achievement for the company in the medical technology space.

The company has also entered into an agreement with Prezo Health which is also a major catalyst. At present, it is working on the integration of Salto ankle and has also initiated the controlled market release of the Cadence Total Ankle system, which is a significant positive in our view.

Key Picks

Better-ranked stocks in the sector include ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) , Fibrocell Science, Inc. (NASDAQ:FCSC) and Innoviva, Inc. (NASDAQ:INVA) , all of which sport a Zacks Rank #1 (Strong Buy)