Tuesday, June 19, 2018

FDA Approval Of Injectable Augment Should Give Wright Medical's Growth A Shot In The Arm

It’s a kinder, gentler FDA that the healthcare world is dealing with these days, and while I don’t believe that’s an unalloyed positive for the industry, the approval of the injectable version of Augment is definitely a positive development for Wright Medical (WMGI). Although the near-term impact to sales is likely to be on the order of 1% or so, the longer-term impact could be more significant. Coupled with a strong upper extremity business that continues to gain share and a lower extremity business that should see some re-acceleration in the second half, Wright’s outlook is brightening. If the company can get revenue growth back up to a double-digit pace, a 5x forward revenue multiple and a fair value in the mid-$30s could be back in play in a year, though I wouldn’t pay quite that much today.

Read the full article here:
FDA Approval Of Injectable Augment Should Give Wright Medical's Growth A Shot In The Arm

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