Wright Medical Group, Inc. (WMGI) recently announced the full commercial launch of its new product, the VALOR Hindfoot Fusion Nail. It is a comprehensive and advanced surgical product for fusion of the ankle joint.
The product was designed in combination with world-famous foot and ankle surgeons to aid ankle fusion while treating skeletal deformity, late-stage arthritis or complications emanating from diabetes (neuro-osteoarthropathy). The product’s initial pre-market availability was announced in November 2009.
The VALOR Nail is a customized product designed to suit patient specific needs. An internal compression device is used by each fusion nail. This allows the compression between bone surfaces to be controlled by the surgeon, thereby optimizing the conditions for fusion.
The new product will be available immediately in the US. The company’s specialized Foot and Ankle sales team will be responsible for its availability in the US. Furthermore, Wright’s direct and distributor-based sales representatives will market the product in few selected countries outside the US. The addition of the new product further augments Wright’s already rich array of products for Foot and Ankle surgeons.
Management estimates that more than 30,000 hindfoot fusion procedures are performed in a year in the US. It is estimated that more than half the patients are treated with a fusion nail. The new product will be in great demand since the population of patients suffering from diabetes is on the rise, thereby increasing the number of people requiring a nail option for salvage. This will lead to greater revenue and further top line growth at Wright.
Wright is a global orthopedic devices company specializing in the design; manufacture and marketing of reconstructive joint devices and bio-orthopedic materials.
The orthopedic industry, in which Wright operates, is highly competitive. The company faces challenges from large players, such as, Zimmer Holdings Inc. (ZMH), Stryker Corp. (SYK), Johnson & Johnson (JNJ)/De Puy, Smith & Nephew plc. (SNN) and Biomet.
Currently, we have a Neutral recommendation on Wright.
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