Minimally disruptive spinal implant specialist NuVasive ($NUVA) is slated to build out a new medical device manufacturing facility. The company expects to select a site by the end of this year, with the expectation that the new facility will be up and running by the end of 2016.
The new manufacturing facility is slated to be about 130,000 square feet and to employ more than 300 people, including manufacturing and quality engineers, tool makers, machinists and manufacturing technicians.
"This new manufacturing facility reflects the demand for NuVasive's innovative spine technology," said NuVasive chairman and CEO Gregory Lucier in a statement. "Along with providing additional capacity to meet this rising demand, our new state-of-the-art facility will further our commitment to expand our internal capabilities to self-manufacture our spinal products and select instruments over time."
He added, "In addition to providing expanded capacity to meet increased demand, the expansion of our manufacturing facility footprint will enable NuVasive to realize increased operating efficiencies and further our ability to achieve our goal of 20%+ operating margins as we drive beyond $1 billion in revenue. As we continue to move towards greater self-manufacturing, we also expect to strengthen our strategic relationships with key vendor partners to complement our internal efforts."
The company declined to disclose any financial details associated with the capital investment, but said it would do so once the facility site had been selected.
Last quarter, NuVasive reported $202.9 million in revenue, an increase of 6.4% from the same period a year prior. It had almost $307 million in cash at June 30. NuVasive has guided to about $810 million in 2015 revenue, which would be a 6.2% increase; it expects non-GAAP earnings per share of about $1.17 for the year.
- here is the statement