Integra LifeSciences (IART): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

By Zacks Investment Research,

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Integra LifeSciences reported adjusted EPS of $0.76 in the third quarter of 2014, up a significant 15.2%. Adjusted EPS also surpassed the Zacks Consensus Estimate by 2.7%. Total revenue increased 7.7% year over year but missed the Zacks Consensus Estimate by 1.4%. The year-over-year growth was based on solid global neurosurgery business and global skin and wound franchise. Besides the decision to spin off the company's loss making Spine and Orthobiologics business is expected to prove as an upside for the company going forward. However, an unfavorable foreign currency translation owing to the weakening of the euro versus the dollar posed concern. In addition, the bearish 2014 earnings outlook also fails to indicate any near-term catalyst that may improve the economic scenario in the near future. Accordingly, we reiterate Integra LifeSciences at Neutral.


Integra LifeSciences is one of the world leaders in regenerative medicine. The company develops, manufactures and markets cost-effective surgical implants and medical instruments. The products are used primarily in neurosurgery, extremity reconstruction, orthopedics, and general surgery to treat millions of patients every year. Integra LifeSciences is headquartered in Plainsboro, NJ and has research and manufacturing facilities throughout the world.

Segment Reporting

Currently the company manufactures and sells products in the following five reportable business segments: U.S. Neurosurgery, U.S. Extremities, U.S. Instruments, U.S. Spine and Other and International.

U.S. Neurosurgery

The U.S. Neurosurgery segment sells a full line of products specifically for neurosurgery and neuro critical care, specifically used in the neurosurgery operating room and neurosurgery intensive care unit (NICU). Key products in this segment include dural repair products (both dural closure and dural sealants), tissue ablation equipment, intracranial monitoring equipment, cranial stabilization equipment, and cerebral spinal fluid ("CSF") management devices. Integra LifeSciences sells products through directly employed sales representatives.

U.S. Extremities

The U.S. Extremities segment includes the U.S. extremity reconstruction business, which includes repair of soft tissue and the orthopedic reconstruction of bones in the foot, ankle and leg below the knee (Lower Extremity), and the hand, wrist, elbow and shoulder (Upper Extremity). Key products include bone and joint fixation devices, implants and instruments for osteoarthritis, rheumatoid arthritis, wrist and shoulder arthroplasty, carpal tunnel syndrome and cubital tunnel syndrome. Other key products include regenerative medicine devices for the treatment of acute and chronic wounds, peripheral nerve repair and protection and tendon repair, and bone graft substitutes. These products are sold through a large direct sales organization and through specialty distributors focused on their respective surgical disciplines.

U.S. Instruments

This business segment at Integra is currently one of the largest surgical instrument suppliers in the U.S. that sells more than 60,000 instrument patterns and surgical products and lighting to hospitals, surgery centers, and dental, podiatry, and veterinary offices. The company also sells sell surgical headlight systems and table-mounted retractors under this segment.

U.S. Spine and Others

This segment includes:

The U.S. Spine business, which focuses on spinal fusion, spinal implants, and deformity correction

The U.S. Orthobiologics business, which focuses on bone graft substitutes and other related medical devices that are used to enhance the repair and regeneration of bone in various types of orthopedic surgical procedures

The Private Label business, which sells the company's regenerative medicine and other products to strategic partners.


This segment sells products of the other four segments in the following geographies:

Europe, the Middle East and Africa

Central/South America, Asia-Pacific and Canada

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: IART

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