Orthovita, Inc. (NASDAQ:VITA)

great company, great product. Taste great, less filling

Outstanding product potential for reducing medical cost and increasing quality of life results.

VITA @ 3.80. A small cap 285 million health care play with a great product, Cortoss (aka bone spackle), that just received FDA approval. VITA should turn profitable for the first time in a decade. Trades for about 1 times sales. Under wall street’s Radar with only 6 analysts covering. A David Gardner Rule Breaker pick with a 5 star CAPS rating. Also out of my circle of competence but I’m building a health care basket to compensate.

Demographic Trends

Looking forward to the new revenue generated by the new product line in the coming 2-3 years.

I bought this based on MF Rulebreaker choice and for med advancements in spinal fusion products.

now's the time

New innovative medical product

New product sales expected to ramp up.

Rule Breaker!

The medicine is approved, now I wait for the double. Buying at this price with my real $ portfolio.

New product just released with the FDA's blessing. Could double revenue over the next few years.

good products strong start

Mmm...spinal surgery...

30% plunge in price not justified

FDA apptoval takes forever

I entered a low buy order on VITA yesterday, but I doubt it will come back down to me. Orthovita has been in the "bone surgery" business for several years and it's stock had just drifted around since 2001 and is hitting an 8 year high. Although it's also coming off of a losing quarter, and has spent the last three years near break-even, I very much like what I see. FDA approval of CORTOSS, an injectable bone replacement composite was just achieved. I don't know what the market potential is of Cortoss, but there is only one competitor and according to Orthovita, (as you would expect), their data indicates that Cortoss is easier to use, more effective, and will be preferred by surgeons in the delicate Spine/fracture/compression operations that is it's initial target. Unlike some other companies seeking FDA approvals, Orthovita has a reasonable revenue stream from their other products in this field. With some insider ownership, debt below cash on hand, and revenues that already came very close to paying the bills, the new addition to their lineup should make them a good value play and possible a nice long in a somewhat recession proof portfolio.

Cortoss will expand sales thus giving the dramatic rise in share price we are looking for.

Vita has over a hundred sales reps working in the ER directly with doctors. Vita methodically built the sales and marketing strategy to radiate their current and ensuring bio-material product line. For the last 5 years, Vita has achieved year-over-year sales growth approx 35%. The Orthovita brand is at early stage of maturity with a highly compensated and motivated sale force. The anticipated FDA approval for Cortoss within the next few quarters will position Vita to accelerate both significant improvement to their top-line and bottom-line numbers as they capture more of 1M spinal fracture and bone augmentation market. At current growth momentum without Cortoss, Vita with be profitable by next quarter. With Cortoss in the product mix, increase in royalty income and increase in product franchising I'm projecting Vita to produce a net profit of $0.15-$0.2/sh in 2010 and as much as $0.3-$0.4/sh in 2011 on revenues of $120M in 2010 and $175M in 2011 respectively.