Integra LifeSciences (IART) Morgan Stanley 24th Annual Global Healthcare Conference summary

Operational progress and quality improvements

• Focused on resolving supply and quality issues, with significant time spent on operations and compliance initiatives.

• Harmonized quality metrics across 17 manufacturing sites, completing a compliance master plan.

• Successful FDA audits and external consultant involvement have improved site compliance.

• All warning letter responses to be submitted by year-end; SurgiMend production restarted, with launch expected in Q4.

• Reduced compliance and EU MDR spending, boosting cash flow and enabling facility completion.

Commercial strategy and portfolio opportunities

• Neurosurgery and tissue reconstruction are core segments, with neurosurgery products regaining market share as supply stabilizes.

• International business is poised for growth as inventory returns, with new neuro products launching through 2027.

• Tissue business has relaunched key products, regaining about 50% of pre-quality system revenue, but faces intense competition.

• Broad product line and enterprise sales focus aim to leverage presence in major hospitals and drive cross-portfolio sales.

Financial outlook and growth drivers

• Operating and free cash flow growth are key metrics to watch over the next four quarters.

• Short-term guidance remains conservative due to recent supply issues, but mid- to long-term targets are mid- to high-single-digit growth in tissue.

• Margin recovery expected as cost-out initiatives and process improvements offset tariffs and quality system costs.

• Operating margins targeted to return to mid-20s, with $10–$15 million further cost reductions planned.