Shares of medtech Conformis (NASDAQ:CFMS) surged more than 17% in pre-market trading on Tuesday after the company said it had received clearance in Australia for its total knee replacement system. CFMS stock has touched a 52-week high price of $1.48 per share twice since January.
The patient-specific iTotal PS total knee replacement system, which was launched in the U.S. in 2016, got a green light for use down under by the Therapeutic Goods Administration, part of the Australian Department of Health. The Therapeutic Goods Administration authorizes the marketing of medical devices and other healthcare products in Australia, according to a Conformis press release. This implant is specifically designed to restore the natural shape of each patient’s knee, and to avoid rotation and sizing compromises associated with post-surgery pain.
“With this clearance, we have greatly expanded the number of potential patients who will be candidates for our personalized knee replacement implants, and we are thrilled to offer the benefits of our unique technology to surgeons in Australia who prefer a posterior-stabilized design to a cruciate-retaining one,” said Mark Augusti, president and CEO.
The global knee joint reconstruction market is projected at more than $9 billion and growing to $12 billion by 2026. HCF, Australia’s largest nonprofit health insurer, reported that more than 50,000 knee replacement procedures are performed in that country each year.
CFMS Stock Gains as Elective Surgeries Bounce Back
CFMS stock lost 26% as the Covid-19 pandemic brought elective surgery procedures to a near halt across the country. A study conducted by the Harvard T.H. Chan School of Public Health, Robert Wood Johnson Foundation and National Public Radio found that between March and August 2020, one in five adults reported their household members were unable to get or delayed receiving medical care for serious problems.
“The pandemic has changed the world as we know it, causing a dramatic drop in adult cardiac surgery volume and worsening patient outcomes,” said Dr. Tom Nguyen, who directs adult cardiothoracic surgery at the University of California, San Francisco. He led a recent study that revealed a 53% decrease in all adult heart surgeries, including a 40% decline in non-elective heart surgeries and a 65% drop in elective heart surgeries during the pandemic, compared to 2019, UPI reported last month.
With the ramping up of Covid-19 vaccines, that slowdown in elective procedures could be showing signs of a reversal, bringing with it an increased need for implant products like those made by Conformis. Local headlines across the country reveal hospital announcements of resuming elective and non-emergency surgeries previously halted for Covid-19 safety.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.