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NuVasive Shares Hit 52-Week High

Shares of San Diego-based NuVasive Inc., which makes spinal devices for minimally invasive procedures, soared to a 52-week high of $55.89 on July 25 following a strong quarterly earnings report and a raised earnings outlook for the year.

Shares of NuVasive, which trade on Nasdaq under the symbol NUVA, closed up 17 percent at $54.86 on July 25.

NuVasive posted a net loss of $495,000 on revenues of $57.4 million for the quarter, compared with a loss of $3.4 million on revenues of $35.6 million a year ago. For 2008, NuVasive raised its outlook from 3 cents a share to 5 to 7 cents a share, excluding one-time charges.

It also announced the completed acquisition of the Osteocel biologics business from Maryland-based Osiris Therapeutics Inc.

NuVasive paid $35 million in cash to buy the Osteocel business, which allows it an entry into the stem cell market. Osteocel is a bone matrix product containing stem cells.

Including milestone payments of up to $50 million and an 18-month product supply agreement worth an additional $52 million, the deal is valued at a potential $137 million. NuVasive said it expects the Osteocel unit to contribute revenues of $15 million in 2008.

Alex Lukianov, chairman and chief executive of NuVasive, told investors the company “will look to create a $100 million biologics business over the next several years.”

Osiris announced its intention to sell Osteocel to NuVasive in May. NuVasive competitor Orthofix tried to prevent the deal from occurring by filing a temporary restraining order July 24, which was denied following a hearing in federal court.

, Heather Chambers

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