Wall Street analysts are predicting with increasing confidence that the U.S. orthopedics market is on the upswing following an industry survey suggesting a coming increase in procedure volumes.
A MEDACorp orthopedics survey of 65 U.S. hip and knee surgeons found improvements in 12-month procedure volume expectations and increased patient willingness for surgery, according to an investment note from Leerink Swann analyst Richard Newitter.
"While not a definitive ‘inflection point,’ the results seem to suggest improving, not just ‘stabilizing,’ U.S. ortho recon volume trends," Newitter wrote.
Taken together with ortho bellwether Biomet Inc.‘s positive 2nd-quarter preliminary results, Leerink forecast a growing orthopedic reconstructive market this year, suggesting that its previous 2012 hip and knee estimates may be "conservative."
That’s good news for device makers such as Zimmer (NYSE:ZMH), Stryker (NYSE:SYK) and Wright Medical (NSDQ:WMGI), all of which saw upticks on Wall Street today.
Still, the research firm maintained its previous 2.8% growth projection due to uncertainty about the European economic environment, Newitter added.
Infraredx, Nipro sign exclusive $50M imaging system contract
Burlington, Mass.-based vascular disease diagnostics company Infraredx signed an exclusive 5-year agreement allowing Nipro Corp. to distribute the TVC intravascular imaging system in Japan.
Infraredx will receive a minimum of $50 million over the duration of the contract and Nipro will take responsibility for obtaining regulatory approval for the system.
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GE Healthcare expands program to bump recurring revenues in Asia Pacific
GE Healthcare (NYSE:GE) expanded its partnership with San Francisco-based ServiceSource to boost renewal of recurring service contracts for medical equipment in Asia-Pacific.
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Accuray and Erasmus sign multi-year research agreement
Sunnyvale, Calif.-based Accuray (NSDQ:ARAY) signed a multi-year research and collaboration agreement with Netherlands-based Erasmus Medical Center to advance technologies in radiation oncology.
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Edwards Lifesciences hits another 52-week high
Edwards Lifesciences (NYSE:EW) briefly hit a new high-water mark of $104.25 on June 19 on the way to closing at $102.48. Shares have been dancing pushing upward of $100 since an FDA panel’s near-unanimous recommendation to expand approval of its Sapien transcatheter heart valve. EW shares were trading at $101.90 as of about 3:20 p.m. today.
Analysts’ ups and downs
- Edwards Lifesciences (NYSE:EW): UBS AG downgrades from a "buy" rating to a "neutral" rating
- Intuitive Surgical (NSDQ:ISRG): Zacks downgrades from "outperform" to "neutral" rating, maintains $578 price target
- Insulet (NSDQ:PODD): Oppenheimer maintains "outperform" rating and $24 price target
- Mindray (NYSE:MR): Credit Suisse reiterates "outperform" rating, increase price target from $24 to $35
- St. Jude Medical (NYSE:STJ): Cannacord Genuity increases price target from $45 to $50, maintains "buy" rating
- Stryker (NYSE:SYK): Leerink Swann maintains "outperform" rating and $67 price target
- Varian Medical (NYSE:VAR): Nomura opens with "buy" rating and $70 price target
