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Orthofix (OFIX) Boosts Spine Business with New Data for Spinal Fusion Procedures Orthofix (OFIX) Boosts Spine Business with New Data for Spinal Fusion Procedures

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Orthofix Medical Inc. OFIX just published encouraging data on Pulsed Electromagnetic Field (PEMF) stimulation. This study, featured in the International Journal of Spine Surgery, highlights Orthofix’s SpinalStim bone growth therapy device as a complementary treatment for lumbar spinal fusion procedures. It particularly benefits patients at risk of pseudarthrosis.

This development signifies a significant leap in the company’s global expansion efforts within the spine sector.

Insights into the Study

The study involved 142 patients across 10 U.S. centers, all of whom had one or more risk factors for pseudarthrosis. The results revealed a success rate of 88.5%, 87.5%, and 82.3% for patients with one, two, or three or more risk factors, respectively. Dr. Marc Weinstein, the lead author, emphasized the challenges faced by patients with these risk factors, highlighting the SpinalStim device’s ability to significantly enhance pain relief, function, and overall quality of life.

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Strategic Value

The SpinalStim bone growth therapy device is the sole FDA-approved system for both lumbar spinal fusion adjunct treatment and nonsurgical spinal pseudarthrosis treatment. Utilizing PEMF technology, the device provides 360 degrees of treatment coverage around the fusion site, achieving a notable 92% success rate in treating spinal fusion surgery patients.

Orthofix has emphasized that this new data underscores the noninvasive and cost-effective nature of SpinalStim, allowing patients to continue their healing process in the comfort of their own homes.

This study reinforces the efficacy of PEMF stimulation for high-risk patients undergoing lumbar fusion surgery, positioning the SpinalStim bone growth therapy device to enhance spinal fusion outcomes and bolster Orthofix’s presence in the spine implant space.

Market Trends

According to a Grand View Research report, the global spinal implants and devices market, valued at $12.8 billion in 2022, is projected to witness a 5.2% CAGR from 2023 to 2030. This growth is fueled by the surge in spinal cord injuries globally, attributed to factors like spine degeneration, fractures, and abnormalities. The escalating cases of spinal disorders, fractures, and injuries, coupled with a demand for advanced medical technology, contribute to the market’s trajectory. Moreover, the growing elderly population and obesity-related vertebral column disorders further drive the need for spinal surgery, ensuring sustained market expansion. With preventable causes like falls and accidents contributing to a significant number of spinal cord injuries globally, the market’s prospects remain robust, addressing the pressing healthcare needs of a growing population.

Stock Performance

Shares of OFIX have declined 28.5% over the past year, reflecting a contrasting trend against the industry’s 5.6% growth

Analyst Pick

Orthofix currently holds a Zacks Rank #2 (Buy).

Other top-ranked stocks in the broader medical space include Insulet PODD, Haemonetics HAE and DexCom DXCM. Insulet carries a Zacks Rank #1 (Strong Buy), while Haemonetics and DexCom each presently have a Zacks Rank #2. For more best-rated stocks, visit the complete list of today’s Zacks #1 Rank stocks here.

Insulet’s 2023 earnings per share estimates have moved up from $1.90 to $1.91 in the past 30 days. The company’s shares have dropped 26% in the past year compared with the industry’s decline of 2.6%.

PODD’s earnings have exceeded estimates in all of the past four quarters, with an average surprise of 105.1%. In the latest reported quarter, it delivered an average earnings surprise of 77.4%.

Haemonetics’ stock has risen by 12.3% in the past year. Earnings estimates for Haemonetics have also seen an uptick, from $3.86 per share to $3.89 per share for 2023 and from $4.11 per share to $4.15 per share for 2024 in the past 30 days.

HAE’s earnings have surpassed estimates in every quarter of the last year, with an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.

DexCom’s 2023 earnings per share estimates have increased from $1.43 to $1.44 in the past 30 days. Shares of the company have gone up by 11.2% in the past year, outperforming the industry’s growth of 2.1%.

DXCM’s earnings have exceeded estimates in every quarter of the past year, with an average surprise of 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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