International orthopedic devices company Wright Medical (WMGI) recently commenced the full commercial launch of its new ankle replacement system. The new INBONE II total ankle replacement system leverages the success of the company’s legacy INBONE ankle system which was introduced in 2006.

The INBONE II system is now the only marketed ankle replacement system in the U.S. providing surgeons multiple implant options with different articular geometry (plays key role in stability and integrity of the ankle joint). Moreover, it further improves surgical instrumentation, which enables optimal placement of the implant components based on the patient’s biomechanical profile. Accurate placement is a critical factor impacting the longevity of the implant.

Total ankle replacement is fast becoming the therapy of choice for many patients with ankle arthritis and other disorders. The advancements (offered by INBONE II) should boost Wright Medical’s foothold in the total ankle replacement market.    

INBONE II is the new addition to Wright Medical’s market-leading foot and ankle product line which includes the CHARLOTTE reconstructive implants, DARCO locked plating systems and the INBONE total ankle replacement system.

The INBONE II system will be marketed in the U.S. through Wright Medical’s specialized foot and ankle sales force. Moreover, it will be available in select markets outside the U.S. through the company’s direct sales representatives and distributors.

Wright Medical is a global orthopedic devices company specializing in the development and marketing of reconstructive joint devices and bio-orthopedic materials. It is a leader in the U.S. and German markets for foot and ankle surgical products.

The INBONE ankle system is a part of Wright Medical’s extremity hardware franchise. The device largely contributed to the double-digit growth in the company’s U.S. extremity business in fiscal 2010.

We feel, future revenue growth will be supported by new product (including internally developed and those from acquisitions) launches. Moreover, new deals in extremities, Wright Medical’s fastest growing segment, are expected to bolster growth in this business.

Our views are moderated by intense competition from larger players, pricing pressure, and a still soft U.S. orthopedic reconstruction market. Wright Medical competes with much larger players such as Zimmer Holdings (ZMH), Stryker (SYK), Johnson & Johnson’s (JNJ) De Puy and Smith & Nephew (SNN). We are currently Neutral on the stock.

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