Musculoskeletal News Roundup 11-Feb-10
BY LAUREN UZDIENSKI, FEBRUARY 11, 2010
Earnings
Nobel Biocare reported 4Q:09 revenues of EUR 156.0 million ($213.6 million), flat over the year-ago period and missing estimates by EUR 5.0 million ($6.9 million.) EPS of EUR 0.21 ($0.29) missed estimates by EUR 0.05 ($0.07). The company called the market "highly challenging" and added that they are "well poised to take advantage of a recovery, early signs of which are emerging in a number of the world's economies."
RTI Biologics reported 4Q:09 revenues of $42.0 million, up 12% over 4Q:08 and in line with estimates. Revenues from the distribution of musculoskeletal tissues increased by 5% over the year-ago period, with spine down 21%, sports medicine up 22%, dental up 7% and general orthopedic up 41%. Sales of bone graft substitutes increased 58%. Net income for the quarter was $1.5 million, or $0.03 per share, in line with estimates.
Smith & Nephew reported 4Q:09 revenues of $1.1 billion, up 4% over the year-ago period and beating estimates by $31.0 million. Orthopedic sales increased 2% to $593.0 million, with hip up 3%, knee up 5%, trauma down 2% and clinical therapies down by 4%. Endoscopy sales increased 6% to $230.0 million. All growth rates exclude the effects of currency. Adjusted EPS increased by 22% to $0.20, in line with estimates.
M&A
Allergan acquired Serica Technologies, a developer of silk-based biomaterials, for an undisclosed amount. Serica stockholders received an upfront cash payment plus equity in Alacer Biomedical, which holds exclusive rights to Serica's IP within orthopedic and veterinary indications.
Funding
Tepha raised approximately $3.0 million from a group of unnamed investors. Prior investors include the Vertical Group, Novartis Venture Fund, Integra Ventures and Westfield Life Sciences Fund. Tepha is developing resorbable polymers for sutures, meshes and implants.
Product Introduction and Update
Local press on Santa Rosa, California-based Osseon reports that the company has reached break-even and completed 530 cases with its Osseoplasty system for the treatment of vertebral compression fractures. The system includes a bone cement delivery system that features a flexible needle. Osseon reports that the cost per procedure of using the system is $24,000, compared to kyphoplasty's cost of $41,000.
Stryker Orthopaedics launched the Rejuvenate Modular Primary Hip System, which is designed to "better personalize the implant to a patient's unique anatomy" with a range of femoral stem and neck combinations and a variety of length, version and offset options.
Clinical
Clinical tests on 14 patients at two centers in Israel and Eastern Europe demonstrated that the BonaFixatore device from LRS Ortho Ltd. was "safe to use and there were no mechanical or clinical problems." The device guides nails during hip surgery.
Operations
According to several reports, Disc Dynamics closed and is selling its assets, which include the Dascor Disc Arthroplasty system. The company has raised at least $65.0 million in funding over the past decade, with investors including Split Rock Partners and Medtronic.
