RTI Surgical Inc (RTIX): Medical Appliances to Stay in Demand

In 2013, Integra launched its Hollywood VI intervertebral body fusion device, or IBD, system. The Hollywood VI IBD is mainly employed in transforaminal lumbar interbody fusion, a surgical process intended to aid in easing pain and nerve compression by fusing and stabilizing adjacent vertebrae in the lower back. IBDs assist in providing strength for spinal fusion after an infectious disc has been removed through operation. This product provides surgeons with supplementary solutions to better treat their patients and is expected to contribute to the top-line growth of Integra.

Earlier this year, Integra also introduced Compact Cranial Closure System, which provides titanium implants for non-loadbearing (non-facial) operative cranial neurosurgical procedures. It was also featured at the American Association of Neurological Surgeons annual meeting in May. Every year, Neurosurgical cranial fixation sets are employed in more than 200,000 cranial procedures in the U.S. for the treatments of head trauma injuries, biopsies and tumor removal. The high demand of this product will result in providing an up lift to the company’s revenues.

Conclusion

With the global medical devices industry forecasted to reach approximately $302 billion in 2017, growing at a rate of 6.1%, RTI Surgical has bright future prospects. The acquisition adds immensely in terms of implant portfolio and its direct distribution network. The company’s revenues and profits are expected to rise once the expected synergies materialize. The return will only take the form of price return as the company does not have a history of providing dividends. I would recommend buying this stock for medium term investors.

With its rigorous series of product launches, Integra is all set to move ahead of the market players. The company does not declare dividends and looks forward to providing return to its investors in the form of price appreciation. In my opinion, the stock has the potential to give higher return and should be bought and held for a few years.

The article RTI Surgical: Medical Appliances to Stay in Demand originally appeared on Fool.com.

Awais Iqbal has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Awais is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.