NUVA
#What we would want to acquire is a Company that in a fairly shorter, medium period of time could be restored if it doesn't have it already, to margins that are the same or in line with ours, as they are today, or one that has our margins today, and we could make even more profitable.
We're not looking for big turnarounds.
I don't think we're in the position quite yet to do that.
So we're looking for things that are running well, but we could make them run a bit better and just, again, enhance our position in this global spine industry.
You can put that concern to rest.
Just to put it in an overall kind of narrative, there was a narrative when we had the change with Alex at the top that there would be a max exodus.
It has been anything but that.
I think the field is more energized than ever, that the headquarters team is listening, we're going to be even more responsive, both in terms of our time and our actions to support them, and we head into 2016 with extremely good plans to, I think, increase our share-taking, increase our revenue growth, in line with what you expect NuVasive to do.
Okay.
<UNK>, this is <UNK>.
I'll tell you, one thing that we've done is, we've learned a lot of lessons from the XLIF experience, and I think that if you look at how we've gone into Japan with XLIF, we're going to do the same as we go into really the entire international market space, which is be highly deliberate, be extremely focused, and really make sure that the clinical experience is reflective of the same things that we're seeing here in the States.
And so it's going to be a methodical walk into those things, but I think the point that was made earlier in the call is, you look at where we've been successful internationally, and it's been where we've been extraordinarily disciplined, extraordinarily focused.
The clinical experience was very consistent with what we've had in the States.
And where we haven't done that, and we've in essence obviated to more of a local flair, we've not done as well.
And so I think that's the commonality associated with how we're going to march into the marketplaces, based upon the lessons we learned on the XLIF front.
This is <UNK> here.
I think the opportunity in front us with posterior fixation is significant, both from a top line perspective, I don't think we have any more than 6% to 7% of that overall market, currently.
I think the opportunity to bring that in line with the overall share that the Company enjoys of 10% in the US is certainly realistic, and no reason we can't take it to the 10% and even elevate beyond that when you start to look at the differentiation that iGA brings, and pulls posterior fixation in with it.
I think the opportunity on the top line is significant.
When you look at it from a margin perspective, the reality is that posterior fixation has a better gross margin profile to it than what our overall business does today.
As we drive more mix towards that, we're going to see a benefit of the gross margin as well, which ends up benefiting profitability for the Company.
At times, people will ask about the price pressure in that space.
Even with incremental price pressure there, the gross margin profile still is well above the corporate average, that we'll be able to offset that, and see a nice mix benefit for us.
I think it helps us all the way around, both top and bottom.
Thanks so much.
<UNK>, this is <UNK> here.
I think when you look at the results that we've put together over the last three quarters in our implant business, you're seeing sequential improvements in traction being gained.
My view is the overall market continues to be relatively steady, so I think that leads directly to the fact that we continue to take share.
I don't know if <UNK> has anything he'll add, with respect to being out in the marketplace, but my own checks have indicated the market's flat, and we continue to execute on the share taking strategy.
I was just going to add really as much of a follow-on to <UNK>'s last point about posterior fixation.
As I'm out in the marketplace, the one thing that I see is the fact that we're making more and more progress on what would be called the anterior column or the front of the spine, and if you look at the harder one to earn, oftentimes it's spine-approach related.
What happens is you pull through the posterior fixation.
So generally, you're seeing stability in the marketplace, but I've been very pleased with regard to the type of movement that we're making from a competitive perspective, because we're earning the harder part of the surgery, which ultimately becomes the approach-related segments.
Hopefully that makes sense.
One, we're seeing strength certainly in the lumbar side of the business that's offsetting any of the decisions we're making around the services business.
At the same time, we've been pretty effective in that services area of really increasing the utilization and driving the productivity out of that business, that's resulted in some nice results.
So the headwinds that we had spoken to early in the year are not materializing like we thought they would, and I think the opportunity to pull through the hardware business and really capitalize on that opportunity has been more significant than anticipated.
That's what you see reflected in the revised expectations for the year today, and the new guidance we put out.
Go ahead, <UNK>.
I was just going to say, this is <UNK>, Mike.
My channel checks, or when I'm in the field, I'm hearing less and less about them.
If anything, flat to going away is my experience.
Same as mine, <UNK>.
I think more than anything we're just trying to be thoughtful about the headwinds that are out there, and to the extent we continue to execute well against those, we hope to be able to over achieve those expectations.
The one thing I would point to specifically is cervical.
We're three quarters into the launch of Archon, it does incredibly well.
We're growing at a double-digit pace, and right now, Q4 is dialed in somewhere around a mid single digit pace.
We'll continue to watch that play out without getting out ahead of ourselves at this point in time, but certainly excited about what we see in that US business.
We're not going to get into quantifying 2016 revenue drivers at this point in time.
When we come out and talk about 2016 guidance, we'll be sure to contribute, build in the contributions from it, but at that point, we'll speak to it and not before.
This is <UNK> again.
We're going to further enhance ReLine.
We're going to move ---+ excuse me, iGA, we're going to move up the spine to cervical.
There's the same type of reasons that you want to align the thoracolumbar spine, you want to make sure alignment becomes a meaningful element in the cervical spine.
So those things are foundationally important.
The other elements that will continue to evolve are making sure that, from an implant portfolio perspective, what we're reflecting is all of the requirements associated with a TLIF and a PLIF and all of the other types of procedures that will ultimately integrate the whole integrated global alignment strategy.
So it's continuing to round out the entire portfolio, one, but it's also moving up to the cervical spine, and make sure that we're reflecting the iGA strategy there, as well.
Thank you, operator, and thank all of you for joining us today.
As always, we appreciate your interest in NuVasive, and we look forward to talking to you next quarter.
All the best.
