NuVasive Inc. (NSDQ:NUVA) today released a report on its financial outlook, including reiterating its 2015 guidance in issuing preliminary 2016 figures, as well as announcing the opening of a new facility in West Carrollton, Ohio.
At its investor day, NuVasive released preliminary guidance for 2016, expecting revenue to grow to $870 and to see its non-GAAP operating profit margin to expand approximately 100 base points compared with 2015.
The San Diego, Calif.-based company reiterated its 2015 full year financial performance guidance, expecting approximately $810 million in revenue and non-GAAP operating profit margin of approximately 15.2%.
NuVasive said over the coming years it hopes to see organic revenue growth in the mid to high single-digit range, with a near doubling of revenue from its international business and a non-GAAP operating profit margin of 25%.
NuVasive said today it picked West Carrollton, Ohio as the location for the build-out of its new medical device facility dedicated to spinal implant and instrument manufacturing.
The company said it agreed to acquire the manufacturing site and plans to invest $45 million over the next 24 months to build-out and equip the 160,000 square foot facility.
NuVasive expects to complete its purchase of the facility by the end of the year, and to begin commercial scale production at the facility by the end of 2016.
“We are happy to announce that we have selected a site in West Carrollton, Ohio as the location for our new medical device manufacturing facility. The site selection and subsequent build-out is a major step forward in our efforts to enhance our manufacturing presence in the United States to support the self-manufacture of nearly 100% of select spinal products and instruments. With this new facility and our longer-term plans to also expand our manufacturing footprint globally, we expect to increase customer responsiveness, dramatically improve inventory turns and speed up design time velocity to more efficiently meet the growing demand for our innovative spine technology,” CEO Gregory Lucier said in a press release.
The new facility is expected to employ 300 full-time employees, and house approximately 100 computer numerical control machine tools and CMM inspection equipment.
“After an extensive search, we are thrilled NuVasive chose to expand their U.S. manufacturing asset in the Dayton region. NuVasive’s investments in this new facility will retain and create hundreds of jobs for the region and support future development. Working together collaboratively with NuVasive and our community partners provided the support the Company needed to stay in the Dayton region and continue to grow,” Dayton Development Coalition CEO Jeff Hoagland said in a prepared statement.