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Product / Company Performance

Integra LifeSciences Reports 3Q18 Revenue -



Integra LifeSciences lowered their organic revenue growth goal for the year in part due to disappointing performance in their orthopaedic business. Within the segment, growth in the U.S. ankle and shoulder product lines was not enough to offset mid-teens decline in the lower extremity fixation portfolio.

The recently completed expansion of the Orthopaedics and Tissue Technologies (OTT) segment, which includes joint reconstruction and trauma device sales and non-ortho sales like skin repair and advanced wound care, was initiated to improve sales growth in the franchise. However, benefits are taking longer to realize on the orthopaedic side of OTT, and meaningful progress will likely take several more quarters as the salesforce ramps up in new territories. Leadership expects improved salesforce performance in 2019, aided by new products like the XT ankle revision system and the Panta II fusion nail.

Asked on the earnings call if the company needs to be in the orthopaedics business given their recent results and segment size, President and CEO Peter Arduini responded, “That’s obviously a question that gets raised quite a bit to us, but I think the key is there’s still a lot of synergies with our regenerative portfolio. That’s why we like extremities.”

ORTHOWORLD estimates 3Q18 and YTD segment sales and growth on an as-reported basis, as follows.

  3Q18 3Q17 $ Change % Change
Joint Recon Extremities $8.6 $8.5 $0.1 1.5%
Trauma $14.1 $14.4 -$0.3 -2.2%
Total  $22.7 $22.9 -$0.2 -0.8%


  YTD18 YTD17 $ Change % Change
Joint Recon Extremities $27.6 $26.9 $0.7 2.4%
Trauma $43.7 $46.4 -$2.7 -5.8%
Total  $71.2 $73.3 -$2.0 -2.8%


ORTHOWORLD projects Integra LifeSciences 2018 orthopaedic revenue of $103.2MM, -2.2% vs. 2017.

Net earnings in 3Q18 for the company, inclusive of all revenue, is as follows.

3Q18 Amount ($MM) % of Sales
Sales $365.9  
   Cost of Sales -$143.2 39.2%
   Administrative -$173.4 47.4%
   R&D -$20.3 5.6%
   Other -$15.7 4.3%
Net Earnings  $13.3 3.6%


Sources: Integra LifeSciences; ORTHOWORLD estimates. All revenue figures presented in USD $MM.

Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.

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