Wright Medical Improving, But At A Choppy Pace

Wright Medical’s (WMGI) deal for Tornier was well-timed – not because it has driven amazing synergies by combining strong lower and upper orthopedic extremity franchises but because the growth in Tornier’s strong shoulder product line-up has offset surprising and disappointing weakness in Wright’s core lower extremity business. It looks there are some signs of life in the lower extremity business, though, and ongoing maturation of the expanded sales force and new product introductions should drive better results throughout the year.

Wright Medical shares look a little undervalued now, but the company’s performance hasn’t really built up much trust with investors. The potential FDA approval of an injectable form of Augment could still be on the way, and Wright still has M&A takeout potential, but inconsistent performance has been the rule for here for a little while.

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Wright Medical Improving, But At A Choppy Pace