Integra LifeSciences Holding Corporation IART has announced the publication of a new economic study assessing the budget impact of switching treatment from fibrin glue to DuraSeal Polyethylene Glycol (“PEG”) hydrogel in five major European countries. The findings show an average cost savings of €419 to €1,279 per patient, with a consistent cost reduction averaging around 22% per procedure across Belgium, France, Germany and the United Kingdom, and 15% in Italy.
The study, “PEG hydrogel sealant versus fibrin glue in posterior fossa surgery: An economic comparison across five European countries,” was published in the Journal of Comparative Effectiveness Research in February 2024.
Predicting IART Stock Movement Following the News
After the announcement on Nov. 13, IART shares plunged 6.1%, finishing at $23.31 yesterday. On a promising note, the latest development is expected to boost the international business of the company’s Codman Specialty Surgical (“CSS”) segment, which has been benefiting from the rapid acceptance of global neurosurgery line-ups, including CSS management and neuromonitoring. We expect the market sentiment surrounding the IART stock to remain positive surrounding this news.
Integra currently has a market capitalization of $1.91 billion. According to the Zacks Consensus Estimate, the company’s 2024 sales are expected to improve by 4.6% compared to last year. It delivered an earnings beat of 1.41%, on average, in the trailing four quarters.
More on the Study Supporting Integra
Cerebrospinal fluid (CSF) leaks after posterior cranial fossa (PCF) surgery are a significant cause of longer hospital stays, hospital readmissions and other costly post-surgical interventions. The current practice of sealing the operative site after primary closure to aid the healing process and protect the patient from CSF leaks widely relies on fibrin glue or PEG hydrogel.
The published economic analysis, based on a peer-reviewed prospective observational study of 200 patients, found that PEG hydrogel was associated with positive clinical outcomes compared to fibrin glue in PCF surgeries. A decision tree was developed on a previous U.S. model and input costs that were derived from European country-specific published sources. The results indicated that Integra’s DuraSeal Dural Sealant is more clinically effective than fibrin glue at preventing CSF leaks after PCF surgery, which may help hospitals reduce costs. The system is meant for use as an adjunct to standard methods of dural repair as sutures to provide watertight closure.
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The study outcome reinforces the company’s focus on the neuro access & repair strategy, innovating new treatment pathways and restoring patient lives through groundbreaking surgical care technologies.
Industry Prospects Favor Integra
Per a Research report, the global CSF management market was valued at $0.67 billion in 2021 and is expected to witness a CAGR of 4.4% by 2031. Increased neurological disease incidences fuel growth and innovations in the medical device sector, offering opportunities in the CSF industry.
More Updates From Integra
Earlier this month, Integra released its third-quarter 2024 financial report, wherein both the top and bottom lines surpassed the consensus mark. The company is progressing with the implementation of its compliance master plan across its manufacturing and supply-chain operations to consistently meet the robust market demand.
IART Stock Price Performance
In the past three months, shares of Integra have risen 6.6% against the industry’s 1.8% fall.
IART’s Zacks Rank and Key Picks
Integra currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Boston Scientific BSX, Haemonetics HAE and Globus Medical GMED, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific’s shares have risen 64.3% in the past year. Estimates for the company’s 2024 earnings per share have jumped 2.5% to $2.46 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.29%. In the last reported quarter, it posted an earnings surprise of 8.62%.
Estimates for Haemonetics’ fiscal 2025 earnings per share have jumped 0.4% to $4.59 in the past 30 days. Shares of the company have rallied 4.5% in the past year compared with the industry’s growth of 26.5%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.
Estimates for Globus Medical’s 2024 earnings per share have increased 0.4% to $2.95 in the past 30 days. Shares of the company have surged 81.1% in the past year compared to the industry’s 23.4% growth. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%. In the last reported quarter, it delivered an earnings surprise of 27.69%.
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