Wednesday, October 7, 2015

Seeking Alpha: LDR Holding Corp. Seems To Be In The Right Place At The Right Time

The spinal surgery/spinal care market has been marked in recent years by a few trends that run counter to how many investors historically see the med-tech market. First, size hasn't proven to be such an insurmountable competitive advantage, as up-and-comers like NuVasive (NASDAQ:NUVA), LDR Holding (NASDAQ:LDRH), and Globus (NYSE:GMED) have gained share at the expense of larger rivals like Johnson & Johnson (NYSE:JNJ) and Medtronic (NYSE:MDT). Second, and apologies for the obvious pun, it seems to be one of the few areas of medicine where insurers have found some backbone and pushed back on pricing.

The subject of this article, LDR Holding, strikes me as an appealing growth story in med-tech by virtue of its commitment to doing things differently in the spinal space. Not only does the company have a strong product in the fast-growing cervical disc replacement market, but the company is also advancing technology in the lumbar area that features less hardware and less collateral damage to the patient. LDR Holding still has a difficult climb on its way to the top, including not only competition with the likes of JNJ and Medtronic, but also surgeon inertia, and the valuation is not obviously cheap, but the balance between growth and valuation is at least promising enough to look closer.

Click here for the full article:
LDR Holding Corp. Seems To Be In The Right Place At The Right Time

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