SeaSpine - Growing Strong

(RTTNews) - Shares of SeaSpine Holdings Corp. (SPNE) have returned more than 60% year-to-date, clearly outpacing the 12% gain of the iShares Nasdaq Biotechnology index.

SeaSpine is a medical technology company focused on developing and commercializing surgical solutions namely, orthobiologics and spinal implants, for the treatment of patients suffering from spinal disorders.

Between 2012 and 2017, Company launched a total of 30 products, thanks to increased annual research and development spending. This year, more than 6 products are expected to be launched, of which 4 products have already been launched.

SeaSpine reports revenue in two product categories namely orthobiologics and spinal implants.

The orthobiologics products consist of a broad range of advanced and traditional bone graft substitutes that are designed to improve bone fusion rates following a wide range of orthopedic surgeries, including spine, hip, and extremities procedures. The spinal implant portfolio consists of an extensive line of products to facilitate spinal fusion in MIS, complex spine, deformity and degenerative procedures.

The Company generates 90% of its revenue from the U.S. spine market. Apart from the U.S., the Company's products are sold in over 30 countries worldwide.

Having achieved single digit revenue growth in the first two quarters of this year, the Company now expects revenue for the third quarter of 2018 to increase in the range of 12-13%.

For the three-months ended September 30, 2018, the preliminary and unaudited revenue is expected to be in the range of $35.5 to $36.0 million, reflecting approximately 12% to 13% growth compared to the prior year period.

Looking ahead to full-year 2018, revenue is now expected to be in the range to $141 to $142 million, up from its prior forecast range of $136 to $139 million. The revised outlook reflects growth of approximately 7% to 8% over full-year 2017 revenue of $131.8 million.

With cash balance of $11.5 million and $7.3 million of outstanding borrowings at September 30, 2018, the Company says it is sufficiently capitalized through at least the end of 2019.

Given SeaSpine's growing product portfolio, sustained and accelerating revenue growth through strengthening distributor relationship, and increasing market penetration from the recently launched products, it is worth taking a look at this stock.

SPNE touched a new 52-week high of $17.47 today, and is currently trading at $17.11, up 3.01%.