Integra LifeSciences (Nasdaq: IART)
today announced first-quarter results that beat the revenue consensus on Wall Street and matched earnings estimates.
The Princeton, N.J.-based company reported profit losses of $3.3 million, or -4¢ per share, on sales of $368.9 million for the three quarters ended March 31, 2024. Sales for Q1 were down slightly from the same period in 2023 when it reported $380.8 million. Profits were also down from $24.2 million in Q1 2023.
Adjusted to exclude one-time items, earnings per share were 55¢, in-line with The Street, where analysts were looking for sales of $361.96 million.
“We are pleased with our strong first quarter financial performance, which reflects the strength of our diversified portfolio and the unwavering commitment of our colleagues worldwide to our customers and patients,” President and CEO Jan De Witte said in a news release. “As we look to the rest of the year, we remain focused on executing our key priorities, particularly on enhancing quality, reliability and resilience of our manufacturing operations and supply chain, advancing our new product pipeline, and integrating the Acclarent business and welcoming our new colleagues.”
Integra’s Codman Specialty Surgical segment drove revenues for the quarter, accounting for 70% of revenues. Revenues for the segment were up 3.3% year-over-year. In particular, neurosurgery devices sales were the highest revenue generator, accounting for $202.3 million for the quarter.
For the full-year 2024, the company updated its revenue and adjusted EPS expectations to $1.672 to $1.687 billion and $3.01 to $3.11, respectively.
The revenue range reflects reported growth of 8.4% to 9.4%. Integra Lifesciences also anticipates organic growth of 3.3% to 4.3% to reflect the completion of the Acclarent acquisition and the removal of approximately $10 million of revenue from the SurgiMend and PriMatrix relaunch.
As reported in April, Integra Lifesciences acquired Acclarent from Johnson & Johnson MedTech for $275 million upfront. The deal included an additional $5 million upon achieving regulatory milestones. Acclarent, part of J&J MedTech’s Ethicon unit, enhances Integra’s position in the ear, nose and throat (ENT) treatment market.
Integra also provided an update about the temporary closure of its TEI Biosciences plant in Boston, which makes its SurgiMend, PriMatrix, Revize and TissueMend products. In August last year, an internal investigation found deviations with endotoxin testing. The result was a release of products with higher levels of endotoxins than permitted by the product specifications. Higher levels of endotoxins can induce an immune response, including a postoperative fever.
In today’s earnings release, the company said a third-party audit yielded more findings than anticipated. It is currently evaluating the timeline to address the findings and resume commercial distribution. As a result, Integra removed SurgiMend and PriMatrix from the 2024 guidance.
Shares in IART were down 17.48% to $23.84 apiece in mid-morning trading.
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