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 progress in harmonizing manufacturing and quality systems across 17 sites.

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

• All Warning Letter responses are expected to be submitted by year-end, with new product manufacturing underway at the Braintree facility.

• Commercial team maintained business stability during operational challenges, enabling a return to growth initiatives.

• Leadership changes and divisional synergies are being implemented to drive efficiency and growth.

Financial performance and outlook

• Three consecutive quarters without major manufacturing disruptions have stabilized supply.

• Reduced compliance and EU MDR spending have boosted cash flow, with operating and free cash flow growth as key metrics for the next year.

• Operating margins are targeted to return to mid-20s%, with $35–$40 million in cost reductions already achieved and further savings planned.

• Debt to EBITDA ratio improved to 4.1x, with refinancing planned in the second half of the year and a target range of 2.5x–3.5x.

• Commitment to balancing deleveraging with reinvestment, prioritizing organic growth and selective M&A once operational stability is achieved.

Portfolio strategy and growth opportunities

• Neurosurgery and tissue reconstruction are core segments, with new product launches planned for 2027, including Libertís and expanded use of SurgiMend.

• Market share in neurosurgery has been largely retained, with international expansion and new product launches expected to drive growth.

• Tissue reconstruction is regaining market share post-supply disruptions, with all products now available and a focus on competitive execution.

• CMS reimbursement changes are expected to benefit acute care channels, aligning with the company’s pricing and sales strategy.

• Broad product portfolio and cross-division leverage in hospital accounts are key competitive advantages for future growth.