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Orthofix (OFIX) Progresses With Limb-Lengthening Device

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Orthofix Medical (OFIX - Free Report) recently announced a major development with respect to its Fitbone TAA intramedullary limb-lengthening system. According to the company, till Mar 7, more than 5,000 Fitbone Intramedullary Limb-lengthening devices were implanted globally.

This reflects over 20 years of clinical history demonstrating safety and efficacy in limb lengthening and deformity correction in adults and children.

A Few Words on Fitbone TAA

This intramedullary limb-lengthening system is a fully implantable system for correcting leg length and deformity discrepancies.

This system is said to be able to extend the femur or tibia bone with an internal motorized lengthening nail. According to the company, clinical experience and published, peer-reviewed data for the Fitbone intramedullary limb-lengthening system continue to reinforce the safety and efficacy of this device.

We note that the Fitbone intramedullary lengthening nail was acquired from Wittenstein SE in March 2020. It is implanted through a minimally invasive procedure. This system comprises a motorized intramedullary nail, a subcutaneously placed receiver and an external control set that enables the patient to manage the distraction phase at home. Post completion of the treatment, the nail and receiver are removed.

Progress with Fitbone TAA So Far

According to Orthofix, it is the only company to offer a comprehensive portfolio of both internal and external fixation solutions for limb reconstruction and deformity correction.

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The Fitbone intramedullary lengthening system is currently FDA’s 510(k) cleared only available lengthening nail with a pediatric indication. The system is also available in European and other countries under CE Mark approval.

Industry Prospect

Going by a Sphirical Insights report, the global limb/leg lengthening surgery market size was valued at $4.1 billion in 2021 and is expected to reach $8.6 billion by 2030 at a CAGR of 8.7%.

Looking at the fast-expanding scenario of this space, we believe the latest update by OFIX is well-timed.

Recent Strategic Initiatives by OFIX

In the fourth quarter of 2022, the company’s Accell stem bone healing therapies gained traction. Orthofix is seeing a high rate of physician interest and now has access to new prescribing doctors. The company’s payer coverage for Accell stem includes over 80 million lives and it expects this positive trajectory to continue.

Further, Orthofix is putting in efforts on the ongoing development of commercial channel to expand patient and surgeon access to its products worldwide. In 2022, the company continued to invest in the development and optimization of its fracture channel. So far, the orthopedic channel investments have paid off both in the United States and internationally to support continued growth.

Share Price Performance

In the past year, Orthofix has underperformed in its industry. The price of the shares declined 44.8% compared with the industry’s 10.1% decline.

Zacks Rank and Key Picks

Orthofix carries a Zacks Rank #3 (Hold) currently.

A few better-ranked stocks in the broader Medical sector include Haemonetics Corporation (HAE - Free Report) , TerrAscend Corp. and Akerna Corp. . Haemonetics and TerrAscend both sport a Zacks Rank #1 (Strong Buy), while Akerna carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Haemonetics’ stock has risen 42.1% in the past year. Earnings estimates for Haemonetics have increased from $2.87 per share to 2.91 for 2023 and from $3.02 per share to $3.28 for 2024 in the past 30 days.

HAE’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 10.98%. In the last reported quarter, it reported an earnings surprise of 7.59%.

Estimates for TerrAscend in 2023 have remained constant at a loss of 10 cents per share in the past 30 days. Shares of TerrAscend have declined 70.6% in the past year.

TerrAscend’s earnings beat estimates in one of the last three quarters and missed the mark in the other two, the average negative surprise being 136.11%. In the last reported quarter, TRSSF delivered an earnings surprise of 216.67%.

Akerna’s stock has declined 95.7% in the past year. Its estimates for 2023 have remained constant at a loss of $1.91 per share over the past 30 days.

Akerna missed earnings estimates in each of the last four quarters, delivering a negative earnings surprise of 15.49%, on average. In the last reported quarter, KERN delivered a negative earnings surprise of 13.33%.


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