NuVasive, Inc. (NUVA) stock prices were up by a marginal 0.29% as of market close on May 3rd, 2021, bringing the price per share up to USD$71.66 at the end of the trading day.
Acquisition of Simplify Medical
In an effort to establish its footprint in the burgeoning cervical spine surgery market, NUVA recently acquired Simplify Medical. The transaction had an upfront price tag of USD$150 million, with future payments hinging on the achieving of certain sales milestones resulting from the incorporation of the Simplify Cervical Artificial Disc technology.
FDA Approval for Simplify Disc
The first quarter of 2021 saw NUVA announce approval by the U.S. Food and Drug Administration for its Simplify Cervical Artificial Disc for two-level cervical total disc replacement. Following this development, Simplify Disc is now one of only three FDA-approved devices for use in two-level cTDR procedures. The newest addition to the company’s C360 portfolio allows enhanced visualization through post-operative MRIs when compared to alternative devices.
Two Clinical Studies Launched
NUVA recently also announced the launch of two new clinical studies in regard to adult spinal deformities. As part of an extension of NUVA’s existing long-term partnership with the International Spine Study Group Foundation, the studies are based on initial reports from a joint ongoing study favoring minimally invasive surgery for the treatment of adult spinal deformities.
Scope of Clinical Studies
According to a report by Research And Markets, the global market for minimally invasive surgery was roughly USD$49 billion for the fiscal year 2020. These numbers are expected to grow at a CAGR of 9.1%, with a forecasted USD$90.4 billion markets by 2027. The company is expecting a significant boost to global sales on account of MSI factors such as fewer complications, faster recovery periods, and minimal blood loss.
NUVA Financial Reports
NUVA reported USD$1.051 billion in total net sales for the full fiscal year 2020, a 10.1% decrease from the USD$1.168 billion reported for the full fiscal year 2019. The decrease is a result of the obstacles imposed by the onset of the global Covid-19 pandemic and consequent government restrictions and regulations. Nevertheless, the company reported cash, cash equivalents, and investments amounting USD$1.03 billion as of December 31st, 2020, a substantial increase from the USD$213 million reported as of December 31st, 2019.
Future Outlook for NUVA
Despite the adversities faced over the course of the pandemic-fueled year, NUVA is poised to leverage its resources to ensure unprecedented growth in a post-pandemic economy. With an extremely strong liquidity position and a recent acquisition under its belt, current and prospective investors are confident in the company’s ability and drive to facilitate increases in shareholder value.
