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Integra LifeSciences' Organic Growth Strong on New Products

Zacks Equity Research

On Sep 2, we issued an updated research report on Integra LifeSciences Holdings Corporation IART. The company has been noticing certain major developments overseas. However, a tough competitive landscape is a concern.

This New Jersey-based company is a leading developer, manufacturer and marketer of surgical implants and medical instruments for use in neurosurgery, extremity reconstruction, orthopedics and general surgery.

Shares of this Zacks Rank #2 (Buy) company have outperformed its industry in the past three months. The stock has rallied 29.2% compared with the industry’s 8% rise.

Integra LifeSciences exited the second quarter of 2019 on a solid note. We are upbeat about year-over-year revenue growth across both its key business segments. Several product launches including CereLink ICP monitor and CertasPlus family of Hydrocephalus management products in the quarter buoy optimism on the stock. In the same period, the company successfully completed its first clinical case using DuraGen in Japan. Expansion of gross and operating margins and a raised EPS guidance for 2019 are encouraging.

Integra LifeSciences Holdings Corporation Price

Integra LifeSciences Holdings Corporation Price

Integra LifeSciences Holdings Corporation price | Integra LifeSciences Holdings Corporation Quote

Benefiting from product launches and an enhanced sales force performance, the company expects faster organic growth during the second half of 2019. In the second quarter, within Codman Specialty Surgical segment, the company began the commercial launch of its products ahead of schedule.

Integra LifeSciences is looking forward to investment opportunities in the Asian market for growing its business much faster than in the United States and also certain parts of its international operations. In line with this strategy, the company is preparing to launch several products in China and Japan. Turning to Europe, management feels encouraged about the growth potential of this region with Tissue Technologies business and CUSA Clarity product scheduled to be launched on the continent.

Meanwhile, the company faces severe competition in the surgical implants and the medical instruments market. It needs consistent innovation to ward off rivalry. Moreover, consolidations in the industry could cause an acute pricing pressure.

Other Key Picks

A few other top-ranked stocks in the broader medical space are Medtronic MDT, Baxter BAX and NuVasive NUVA, each carrying the same favorable Zacks Rank as Integra LifeSciences.

Medtronic’s long-term earnings growth rate is expected at 7.13%.

Baxter’s long-term earnings growth rate is projected at 12.8%.

NuVasive’s long-term earnings growth rate is estimated to be 12.75%.

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Medtronic PLC (MDT) : Free Stock Analysis Report
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