KYPHON SPINE PRODUCTS STRONG, ANALYST SAYS

Spine device firm Kyphon is a good bet for investors, with four more quarters that are likely to come in above expectations, Lazard Capital Markets analyst Alexander Arrow said last week in a research note.

The firm's third-quarter revenue of $102.7 million is in line with Lazard's $103.2 million estimate but 1.9 percent above the consensus estimates of $100.8 million, and up 30 percent from the firm's 2005 third-quarter revenue of $79.0 million, Arrow said. This is "consistent with continued market development of the company's singular niche of spine bone fracture repair."

"Our physician feedback continues to indicate that kyphoplasty is considered standard of care and that its use is increasing," Arrow said. Kyphoplasty is a minimally invasive spinal procedure used to treat progressive vertebral body collapse/fractures that may be caused by osteoporosis or the spread of a tumor. Kyphon's balloon kyphoplasty device uses orthopedic balloons to raise collapsed vertebra and try to return them to the correct position.