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Tuesday, July 2, 2019

Wright Medical down 7% on softer prospects for Cartiva implant

Wright Medical Group N.V. (WMGI -7.4%) slumps on more than double normal volume in response to “less positive” market feedback on its Cartiva synthetic cartilage implant designed to treat osteoarthritis in the big toe joint.
In a note, RBC Capital analyst Brandon Henry says some early adopting surgeons have reduced usage, adding that recent data appears to suggest that the device “may not be the panacea some initially hoped for.” He has lowered his fair value target to $34 from $36 while maintaining his Outperform rating.
Shares also sold off on June 20 after Wells Fargo said a number of doctors had temporarily stopped using Cartiva due to concerns with durability.

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