Orthofix Medical Inc. (NASDAQ: OFIX)

Orthofix Medical Inc. (OFIX) is a leading global company in the medical device industry, specializing in the provision of a comprehensive portfolio of biologics, innovative spinal hardware, bone growth therapies, specialized orthopedic solutions, and a leading surgical navigation system. The company's products are distributed in over 60 countries worldwide, with a global research and development, commercial, and manufacturing footprint that includes facilities and offices in the United States, Canada, Europe, and Brazil.

Orthofix's business is segmented into two main areas: Global Spine and Global Orthopedics. The Global Spine segment accounts for 85% of the company's total net sales, while the Global Orthopedics segment accounts for 15%. The Global Spine segment is further divided into several product categories, including Bone Growth Therapies, Spinal Implants, Enabling Technologies, and Biologics. Bone Growth Therapies products, such as CervicalStim and SpinalStim, utilize pulsed electromagnetic field (PEMF) technology to enhance bone growth and improve the success rate of certain spinal fusion procedures. Spinal Implants products, such as artificial discs and interbody spacers, are designed to treat patients suffering from degenerative disc disease of the spine. Enabling Technologies products, such as the 7D FLASH Navigation System, provide a navigation platform for use in open and mini-open posterior spinal procedures. Biologics products, such as Accell Bone Matrix and Cellular Bone Matrixes, facilitate and aid in fusion by maximizing osteoinductive content while providing an improved conductive matrix.

The Global Orthopedics segment is also divided into several product categories, including Orthopedic Solutions and Bone Growth Therapies. Orthopedic Solutions products, such as fixation and interbody spacers, are designed to treat patients suffering from a variety of orthopedic conditions, including fractures and osteoporosis. Bone Growth Therapies products, such as PhysioStim, use PEMF technology to noninvasively activate the body's natural healing process and accelerate the healing of indicated fresh fractures.

Orthofix competes in the spine and orthopedics industry with companies such as Medtronic, Zimmer Biomet, and Stryker. The company's competitive advantages include its comprehensive portfolio of products, its strong research and development capabilities, and its global commercial and manufacturing footprint. Orthofix's customers include hospitals, ambulatory surgery centers, and out-patient facilities, as well as orthopedic and spine surgeons.

Orthofix's product development efforts employ an integrated team approach that involves collaboration between surgeons, engineers, machinists, and regulatory personnel. The company's research and development organization is dedicated to advancing its portfolio of spinal implants, biologics, orthopedic devices, and machine vision image guidance innovations through product development and clinical affairs programs.

In terms of future product applications, Orthofix remains very active with multiple internal developments to support future, new technology commercialization efforts. These new technologies will apply to both the cervical and thoracolumbar spinal anatomy. The company expects that the contribution of new, internally developed technologies and undefined external acquisitions will be the primary driver of future growth.

Orthofix has also participated in research at the Wake Forest University Health Sciences, Chinese University of Hong Kong, and University of California San Francisco, where scientists conducted animal and cellular studies to identify the mechanisms of action of Orthofix's PEMF signals on bone, cartilage, meniscus, nerve, and efficacy of healing. From these efforts, some studies have been published in peer-reviewed journals, illustrating positive effects of PEMF on callus formation and bone strength, meniscus and nerve injury repair, as well as proliferation and differentiation of cells involved in tissue regeneration and healing.