NuVasive, Inc. NUVA continues to grow its spine product line successfully. Recently, the company managed to achieve the U.S. FDA 510(k) nod for its MAGEC system to be implanted using its Reline posterior fixation system for the treatment of severe spinal deformities.
We note that NuVasive acquired the MAGEC system through its buyout of Ellipse Technologies earlier this year. MAGnetic External Control, or MAGEC technology, is currently the only FDA-approved magnetically controlled growing-rod system for use in pediatric spinal deformity.
The company claimed that MAGEC acts effectively in reducing the number of planned surgeries in patients with Early Onset Scoliosis (EOS). Post the FDA approval, this system will now work together with the Reline system, offering a comprehensive solution for treating complex spinal deformities.
NuVasive also claimed this FDA approval will not only help deliver a key treatment option in the spine market, but more specifically target the pediatric deformity market. According to the company, MAGEC combined with the versatility of Reline, can better treat children with EOS.
The global market for spinal implant is huge and is expected to grow at 5.9% CAGR over 2016−2020 (data by Med Gadget). On the other hand, with increasing awareness, the global market for pediatric healthcare is expected to grow at an impressive rate of 7.8% CAGR in the future. The pediatric deformity market accordingly has huge prospects and being the only FDA-approved technology in its hand for treating EOS, NuVasive can easily reap benefits out of it.
We note that NuVasive is currently leaving no stone unturned to capture the fast growing spine market. Last year alone, the company launched several new products in this space and we expect this trend to continue through the entire second half of 2016, resulting in outperformance in the spine market.
This was primarily based on its very active pipeline updates, acquisition targets, strategic partnerships and innovative thinking. One important growth catalyst in this niche is the company’s recent acquisition and inclusion of Ellipse Technologies and its products, focused on developing procedural solutions for complex skeletal deformity. We should also take note of the recently completed Biotronic acquisition. According to NuVasive, the inclusion of Biotronic should double the footprint of its service business across the U.S. apart from growing coverage and capabilities in key complementary markets.
Zacks Rank & Key Picks
NuVasive currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked medical stocks are Baxter International Inc. BAX, GW Pharmaceuticals plc GWPH and Quidel Corp. QDEL. All the three stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.