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.

• Supply challenges are prioritized, with a focus on restoring customer trust and ensuring long-term growth.

Business performance and growth outlook

• China represents about 6% of revenue, growing at high single to low double digits, with limited impact from anti-corruption or VBP policies.

• Investments in local manufacturing in China aim to protect market access and mitigate future pricing pressures.

• Mid-single-digit growth targeted for 2025, with allowances for potential supply disruptions as compliance efforts continue.

• Full-year impact of the Acclarent acquisition factored into 2025, with margin pressure expected from ongoing compliance investments.

• Demand remains strong, with supply issues seen as temporary and not reflective of underlying business potential.

Portfolio strategy and integration

• CSS and tissue technology divisions are highly integrated operationally, leveraging regenerative medicine across neurosurgery, ENT, and other markets.

• Regenerative products are being introduced to the newly acquired ENT portfolio, with future growth opportunities identified in adjacent procedures.

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

• Revenue synergies from the MicroFrance ENT business are exceeding initial expectations, with double-digit growth observed.

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