Integra LifeSciences (IART) Wells Fargo 2024 Healthcare Conference summary

Shipping holds and operational impacts

• Shipping holds are expected to have a $50 million impact in Q3 and $10 million in Q4, with most resolved by Q3 and a smaller portion continuing into Q4.

• Shipping holds affect the neurosurgery division only, not tissue, instruments, or ENT businesses.

• Guidance for Q3 and full year allows for variability in timing of shipping hold releases.

Market trends and business segment performance

• End markets remain stable and attractive, with CSS growing at mid-single digits and tissue technology at high single digits.

• Hospital reimbursement is stable, while outpatient reimbursement is shifting to favor products with strong clinical evidence.

• Strong demand continues across product portfolios, including CSF, Tissue Tech, and Acclarent.

Integra Skin and production recovery

• Integra Skin production is ramping up, with normal run rates expected by the beginning of Q4.

• Sales for Integra Skin are just under $200 million annually, with margins above company average.

• Integra Skin is expected to return to growth in 2025.