IART Integra LifeSciences Holdings Corporation

Recently, Integra Lifesciences (IART) entered into a three-year deal with Novation, a healthcare supply contracting company. As per the deal, Novation selected Integra to supply its Jarit sterilization containers to the members of VHA Inc., University HealthSystem Consortium (UHC) and Provista.

The health care market served by Novation includes acute hospitals and systems, academic medical centers, ambulatory care and physician clinics, home health and long-term care facilities. Currently working with more than 600 suppliers, it offers services to more than 25,000 members of VHA Inc. and the University HealthSystem Consortium (UHC), and 5,500 members of Provista.

Earlier in April, Novation entered into supply contracts with Briggs Medical Service Co. of Iowa, Medline Industries of Illinois for Stethoscopes and UK-based Otodynamics Ltd. to supply audiology equipments.

Being a highly-diversified medical products company, Integra generates revenue through its three business segments: Integra NeuroSciences (neurosurgery and neurotrauma), Integra Orthopedics (burn, plastic and reconstructive surgery) and Integra Medical Instruments (basic general and specialty surgical instruments that are typically used in a sterile surgical field). 

Key brands that make up the surgical instruments segment include Miltex, Jarit, and Luxtec, Ruggles, and Omni-Tract.

Jarit surgical instruments (acquired earlier in 2003) offer reusable surgical instruments used in virtually all surgical disciplines (laparoscopic, general, cardiovascular, neuro, gynecological, and orthopedic surgical specialties). 

During the fourth quarter of fiscal 2010, Integra witnessed a decline of 2.1% year-over-year in revenue for medical instruments. However, in a drive to improve its business, Integra is presently investing to expand its sales distribution and new product development.

During the last quarter, the company reported a 12.9% rise in research and development costs and an 8% hike in selling, general and administrative expenses. In the next 3 to 5 years, Integra expects the Medical Instruments market to record a low-single digit growth.

However, a weaker economy and tighter capital spending continues to challenge the surgical instruments market. In addition, the company, faces direct competition in the Medical Instruments & Supplies industry from major players like Medtronic (MDT) and Stryker Corp. (SYK).

 
INTEGRA LIFESCI (IART): Free Stock Analysis Report
 
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STRYKER CORP (SYK): Free Stock Analysis Report
 
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