Medical mobility firm the Corin Group has revealed a sales slowdown in some key regions could push annual profit below forecasts.
But analysts were still upbeat after the company that makes implants aimed at keeping arthritis sufferers mobile said it had agreed a ten-year supply pact with US orthopaedics firm Stryker for Cormet, its flagship product.
Shares for Cirencester-based group have been buoyed by optimism that the firm was close to signing up a US distributor for the metal-based hip.
Investec Securities analyst Seb Jantet: "The distribution agreement is very good news for the business.
"It's absolutely key to their launch strategy of Cormet in the US and I think it's got scope to almost double the profits of this business by 2008."
However the profits forecast hit shares by as much as seven per cent in early trading yesterday.
Hip resurfacing implants place a metal cap over the thigh bone, rather than removing a chunk of bone as in traditional replacements.
Researchers hope that metal-on-metal implants will be particularly durable, making them ideal for younger patients who want to remain active without the risk of repeat surgery.
Corin said in a trading statement that overall UK sales were flat in the first-half, while sales of some products in the United States and Japan were well below par. Trading in Germany was seen in line.