Integra LifeSciences (IART) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Quality and compliance initiatives

• Compliance Master Plan launched as a holistic approach to address quality and GMP compliance, informed by internal audits and regulatory reviews.

• Board-level quality committee established, with increased investments in talent, culture, and manufacturing to drive supply resilience and capacity.

• Temporary shipping holds implemented and being resolved product-by-product and country-by-country, with progress expected through Q3 and into Q4.

• External consultants engaged to expand the Compliance Master Plan, extending efforts through year-end and into next year.

• Focus remains on restoring customer trust and ensuring long-term supply stability.

Operational and financial outlook

• Immediate priorities are alleviating supply challenges and strengthening quality control to proactively address risks.

• Once supply issues are resolved, focus will shift to returning to mid-single-digit growth, leveraging strong product differentiation and customer relationships.

• 2025 is expected to see mid-single-digit growth, with allowances for potential supply disruptions as compliance efforts continue.

• EPS for 2025 anticipated to be flat to modestly up, reflecting ongoing investments in compliance.

• Strong balance sheet and liquidity position highlighted as key strengths.

Portfolio strategy and integration

• CSS and tissue technology divisions are highly integrated operationally, with regenerative medicine as a unifying theme across markets.

• ENT acquisition (Acclarent) exceeded Q2 expectations; guidance remains conservative due to early integration phase.

• ENT business expected to maintain high single-digit growth, supported by intact commercial and R&D teams and transition agreements with J&J.

• Revenue synergies from ENT acquisition primarily seen in MicroFrance ENT business, which is growing at double digits.

• Future M&A opportunities in ENT now more viable due to scaled commercial sales force.