Symmetry Medical, Inc. (SMA) recently entered into an exclusive five-year supply agreement with OrthoPediatrics Corp., a bio-science company that develops, designs and distributes anatomically appropriate orthopedic implants and solutions for pediatric and small stature patients.
Per the agreement, Symmetry will manufacture implants, instruments and cases, and provide engineering resources, inventory management, and warehousing and supply chain management services through its Total Solutions offering to OrthoPediatrics Corp. In addition, Symmetry will provide new product development services to OrthoPediatrics Corp. and finished products and kitted sets will be shipped directly from Symmetry to distributors and hospitals.
Symmetry will receive revenues of roughly $3 million in 2010 from the agreement. Furthermore, the company will receive fees for inventory management, warehousing, and supply chain management services.
Symmetry Medical is the largest original equipment manufacturer (OEM) provider of orthopedic implants and instruments to orthopedic device manufacturers. The company has created a distinct competitive position in the orthopedic device market with its Total Solutions Approach. Under the approach, customers are provided with a broad range of products relating to orthopedic implants as well as comprehensive services and production capabilities to bring these implant systems from the drawing board to commercialization in a timely and cost efficient manner.
Symmetry Medical has diversified its offerings into areas beyond orthopedics like dental, osteobiologic, and endoscopy. The company also sells products to the aerospace industry.
Presently, we have a Neutral recommendation on Symmetry.
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