Greatbatch, Inc. (NYSE:GB) today updated institutional investors and research analysts in New York City regarding its strategic evolution. The company is progressing from strictly a developer of components and sub-assemblies to an organization also capable of developing complete medical devices for OEM customers.
Speaking at the Millennium Broadway Hotel, President & Chief Executive Officer Thomas J. Hook, Senior Vice President & Chief Financial Officer Michael Dinkins and Algostim, LLC President Scott Drees focused on three topics: how the company’s core business is driving organic growth and financial performance; Algostim, its innovative, internally developed spinal cord stimulation (SCS) system which is nearing completion; and 2013 financial guidance with long-term plans to drive profitable growth.
“Ninety-five percent of all active implantable medical devices contain one or more of our proprietary component products – a core business that’s driving top line and bottom line performance,” said Mr. Hook. “In turn, this is propelling our evolution into a medical device company. Algostim, which we revealed in great detail today, illustrates the capability and capacity we’ve built to bring greater value to our customers and true innovation to their markets.”
Leveraging its extensive intellectual property portfolio of more than 1,000 patents, Greatbatch foresees high potential in the multi-billion dollar end markets it serves, specifically in cardiac and neuromodulation, portable medical, vascular and orthopaedics. Eighty-eight percent of its revenues are currently derived from the medical device sector. Based on its IP combined with enhanced sales and marketing, Mr. Hook indicated that Greatbatch is poised for significant growth opportunity through market share capture.
“We have made a considerable investment to optimize our sales and marketing organization as we deepen our relationships with the world’s leading medical technology and commercial companies,” said Hook. “This has allowed Greatbatch to secure long-term agreements while also capitalizing on increasing product life cycles.”