08.15.17
$992 Million
KEY EXECUTIVES:
Peter Arduini, President and CEO
Kenneth Burhop, Corp. VP and Chief Scientific Officer
Glenn G. Coleman, Corp. VP, CFO, and Principal Accounting Officer
Robert T. Davis, Jr., Corp. VP and President, Orthopedics and Tissue Technologies
John Mooradian, Corp. VP, Global Operations and Supply Chain
Dan Reuvers, Corp. VP and President, Specialty Surgical Solutions
NO. OF EMPLOYEES: 3,700
GLOBAL HEADQUARTERS: Plainsboro, N.J.
With its SeaSpine business now a standalone firm, Integra is thinking small in terms of its orthopedic offerings. Small bone fixation products and upper and lower extremity implants are all that remain of the company’s orthopedic hardware portfolio.
That’s not to say Integra isn’t invested in orthopedics. The company merely removed itself from the remarkably competitive spine business in order to stake its claim in the promising extremities growth market and evolve its mainstay tissue regeneration, neurosurgery, and specialty surgical instruments enterprises. The extremities market is currently somewhat of a “grab bag” for both established and emerging companies because no one organization holds a sizeable market share, and the majority of innovation is coming from small- to mid-sized firms. Large orthopedic firms have typically devoted themselves to large joints, and are discovering that to truly grow they must—ironically—think smaller.
Integra made sure to raise its voice among extremities players in fiscal year 2016 (ended Dec. 31) by releasing the Cadence Total Ankle System. Cadence added to the Integra’s growing mix of ankle replacement products. The company made its foray into ankle replacement in 2015 by acquiring the Salto Talaris and Salto Talaris XT prostheses from Tornier, and Cadence complements this product line with several features to accommodate many patient anatomies. Cadence’s side-specific, anatomical tibial and talar components avoid fibular impingement and minimize resected talar bone to preserve the ankle’s vascularity. Further, Cadence’s bearing inserts are made from a highly crosslinked ultra-high molecular weight polyethylene (UHMWPE) to improve wear characteristics. Cadence’s first clinical use in the United States was achieved in April 2016, and in Europe in September.
“This ankle has incorporated many anatomical considerations into its design,” said Dr. Selene Parekh, Duke University foot and ankle surgeon and one of Cadence’s developers. “It allows the surgeon to maintain more bone stock, and provides options to correctly align the ankle back to its native location. Finally, we’ve streamlined both the Cadence system’s design and instrumentation so it’s more efficient for the surgeon and surgical team.”
The Integra Cadence Total Ankle System is designed to treat ankle arthritis through replacement of the ankle joint with a prosthesis, thereby reducing pain, restoring alignment, and allowing for movement at the replaced joint. Image courtesy of Integra.“Integra’s new Cadence system offers a two-component implant, designed to adapt to a patient’s anatomy by providing improved range of motion, intraoperatively,” said Dr. Thibaut Leemrijse of the Foot and Ankle Institute, Parc Léopold Clinic, Brussels, Belgium. “The instrumentation allows ideal positioning of the implant, and the learning curve for this new device seems short, based on our first cases.”
Integra’s Orthopedics and Tissue Technologies segment made up 38 percent of the firm’s 2016 sales of $992 million, which rose a respectable 12 percent from the year prior. The division itself posted a 22 percent upsurge in sales, earning $359 million last year. The compelling gain arose from the completion of multiple acquisitions made in 2015—which included TEI, the aforementioned Salto products, and Futura. In total, these contributed $37.5 million in incremental revenue throughout the year. Prosperity in regenerative products, upper extremities, and private label portfolios was also provoked by strong demand for skin products and new relationships with existing private label customers.
Integra further expanded its upper extremities portfolio in 2016 by launching the Fin-Lock Glenoid addition to the Titan Modular Shoulder System. Since Glenoid component loosening/failure has been cited as a significant reason for total shoulder arthroplasty complications and failure, Fin-Lock includes a central peg with four fins of increased diameter to improve pull-out strength. Three peripheral pegs provide stability against component rocking, and it is manufactured from highly cross-linked polyethylene to improve wear characteristics over the implant’s life.
The company’s Dermal Regeneration Template (IDRT) was approved by the U.S. Food and Drug Administration (FDA) to treat diabetic foot ulcers in January 2016. IDRT had been used to treat life-threatening third-degree burns since 1996. Further, this segment was also bolstered by the $204 million acquisition of Derma Sciences, also in January. Derma’s amniotic tissue-based technology broadened Integra’s regenerative technology portfolio, providing an amniotic product with reimbursement in the wound care channel.
Integra appointed over 25-year healthcare industry veteran Robert T. Davis as corporate vice president and president of the Orthopedics and Tissue Technologies business in December. He joined Integra in 2012 as global president of the neurosurgery business, and was appointed corporate vice president and president of the Specialty Surgical Solutions (SSS) business. As a result, former corporate vice president and president, International Dan Reuvers assumed Davis’ role. CFO and corporate vice president Glenn Coleman assumed Reuvers’ former duties.
“These key leadership appointments reflect the depth and strength of our management team, enabling us to promote executives from within the company,” said Integra CEO Peter Arduini. “Bob, Dan, and Glenn are proven leaders who have demonstrated exemplary management capabilities over the years and a track record of accomplishments that have contributed to our strong business performance.”
SSS is Integra’s largest business, comprising 64 percent of total sales in FY16. The division includes neurosurgical care products as well as a broad range of instruments for neurosurgery; cardiac; ear, nose, and throat; dental; and plastic surgery. The segment’s $633 million in 2016 revenues was an 8 percent growth from the year prior. The expansion was triggered by growth across all SSS franchises—most prominently in dural repair, domestic precision tools and instruments, and international tissue ablation products. The company also formed a service alliance agreement with PREZIO Health, a purveyor of perioperative services as well as repair, maintenance, and management of surgical instruments. Together the companies will offer an integrated approach to surgical instrument lifecycle management, including surgical instrumentation, services, repair, and replacement.
Though it occurred just outside of FY16 activities, Integra made a $1 billion bid for Johnson & Johnson’s Codman Neurosurgery business (from its DePuy Synthes division) in February of this year. Adding Codman’s portfolio of devices focused on advanced hydrocephalus, neuro-critical care, and operative neurosurgery to its product mix will aptly complement Integra’s tissue ablation, dural repair, and cranial stabilization offerings and catapult the firm into a leading market position for neurosurgical products. Integra hopes the transaction will accelerate its path to generate $2 billion in revenue.
“This proposed transformational acquisition of Codman Neurosurgery creates compelling value for our shareholders, employees and patients,” Arduini said in a company announcement. “Its innovative portfolio and global reach will enable us to enhance our position in the neurosurgery market, while also building a global infrastructure that will benefit Integra as a whole. We look forward to welcoming the more than 600 Codman Neurosurgery employees to the Integra team.”
KEY EXECUTIVES:
Peter Arduini, President and CEO
Kenneth Burhop, Corp. VP and Chief Scientific Officer
Glenn G. Coleman, Corp. VP, CFO, and Principal Accounting Officer
Robert T. Davis, Jr., Corp. VP and President, Orthopedics and Tissue Technologies
John Mooradian, Corp. VP, Global Operations and Supply Chain
Dan Reuvers, Corp. VP and President, Specialty Surgical Solutions
NO. OF EMPLOYEES: 3,700
GLOBAL HEADQUARTERS: Plainsboro, N.J.
With its SeaSpine business now a standalone firm, Integra is thinking small in terms of its orthopedic offerings. Small bone fixation products and upper and lower extremity implants are all that remain of the company’s orthopedic hardware portfolio.
That’s not to say Integra isn’t invested in orthopedics. The company merely removed itself from the remarkably competitive spine business in order to stake its claim in the promising extremities growth market and evolve its mainstay tissue regeneration, neurosurgery, and specialty surgical instruments enterprises. The extremities market is currently somewhat of a “grab bag” for both established and emerging companies because no one organization holds a sizeable market share, and the majority of innovation is coming from small- to mid-sized firms. Large orthopedic firms have typically devoted themselves to large joints, and are discovering that to truly grow they must—ironically—think smaller.
Integra made sure to raise its voice among extremities players in fiscal year 2016 (ended Dec. 31) by releasing the Cadence Total Ankle System. Cadence added to the Integra’s growing mix of ankle replacement products. The company made its foray into ankle replacement in 2015 by acquiring the Salto Talaris and Salto Talaris XT prostheses from Tornier, and Cadence complements this product line with several features to accommodate many patient anatomies. Cadence’s side-specific, anatomical tibial and talar components avoid fibular impingement and minimize resected talar bone to preserve the ankle’s vascularity. Further, Cadence’s bearing inserts are made from a highly crosslinked ultra-high molecular weight polyethylene (UHMWPE) to improve wear characteristics. Cadence’s first clinical use in the United States was achieved in April 2016, and in Europe in September.
“This ankle has incorporated many anatomical considerations into its design,” said Dr. Selene Parekh, Duke University foot and ankle surgeon and one of Cadence’s developers. “It allows the surgeon to maintain more bone stock, and provides options to correctly align the ankle back to its native location. Finally, we’ve streamlined both the Cadence system’s design and instrumentation so it’s more efficient for the surgeon and surgical team.”
The Integra Cadence Total Ankle System is designed to treat ankle arthritis through replacement of the ankle joint with a prosthesis, thereby reducing pain, restoring alignment, and allowing for movement at the replaced joint. Image courtesy of Integra.
Integra’s Orthopedics and Tissue Technologies segment made up 38 percent of the firm’s 2016 sales of $992 million, which rose a respectable 12 percent from the year prior. The division itself posted a 22 percent upsurge in sales, earning $359 million last year. The compelling gain arose from the completion of multiple acquisitions made in 2015—which included TEI, the aforementioned Salto products, and Futura. In total, these contributed $37.5 million in incremental revenue throughout the year. Prosperity in regenerative products, upper extremities, and private label portfolios was also provoked by strong demand for skin products and new relationships with existing private label customers.
Integra further expanded its upper extremities portfolio in 2016 by launching the Fin-Lock Glenoid addition to the Titan Modular Shoulder System. Since Glenoid component loosening/failure has been cited as a significant reason for total shoulder arthroplasty complications and failure, Fin-Lock includes a central peg with four fins of increased diameter to improve pull-out strength. Three peripheral pegs provide stability against component rocking, and it is manufactured from highly cross-linked polyethylene to improve wear characteristics over the implant’s life.
The company’s Dermal Regeneration Template (IDRT) was approved by the U.S. Food and Drug Administration (FDA) to treat diabetic foot ulcers in January 2016. IDRT had been used to treat life-threatening third-degree burns since 1996. Further, this segment was also bolstered by the $204 million acquisition of Derma Sciences, also in January. Derma’s amniotic tissue-based technology broadened Integra’s regenerative technology portfolio, providing an amniotic product with reimbursement in the wound care channel.
Integra appointed over 25-year healthcare industry veteran Robert T. Davis as corporate vice president and president of the Orthopedics and Tissue Technologies business in December. He joined Integra in 2012 as global president of the neurosurgery business, and was appointed corporate vice president and president of the Specialty Surgical Solutions (SSS) business. As a result, former corporate vice president and president, International Dan Reuvers assumed Davis’ role. CFO and corporate vice president Glenn Coleman assumed Reuvers’ former duties.
“These key leadership appointments reflect the depth and strength of our management team, enabling us to promote executives from within the company,” said Integra CEO Peter Arduini. “Bob, Dan, and Glenn are proven leaders who have demonstrated exemplary management capabilities over the years and a track record of accomplishments that have contributed to our strong business performance.”
SSS is Integra’s largest business, comprising 64 percent of total sales in FY16. The division includes neurosurgical care products as well as a broad range of instruments for neurosurgery; cardiac; ear, nose, and throat; dental; and plastic surgery. The segment’s $633 million in 2016 revenues was an 8 percent growth from the year prior. The expansion was triggered by growth across all SSS franchises—most prominently in dural repair, domestic precision tools and instruments, and international tissue ablation products. The company also formed a service alliance agreement with PREZIO Health, a purveyor of perioperative services as well as repair, maintenance, and management of surgical instruments. Together the companies will offer an integrated approach to surgical instrument lifecycle management, including surgical instrumentation, services, repair, and replacement.
Though it occurred just outside of FY16 activities, Integra made a $1 billion bid for Johnson & Johnson’s Codman Neurosurgery business (from its DePuy Synthes division) in February of this year. Adding Codman’s portfolio of devices focused on advanced hydrocephalus, neuro-critical care, and operative neurosurgery to its product mix will aptly complement Integra’s tissue ablation, dural repair, and cranial stabilization offerings and catapult the firm into a leading market position for neurosurgical products. Integra hopes the transaction will accelerate its path to generate $2 billion in revenue.
“This proposed transformational acquisition of Codman Neurosurgery creates compelling value for our shareholders, employees and patients,” Arduini said in a company announcement. “Its innovative portfolio and global reach will enable us to enhance our position in the neurosurgery market, while also building a global infrastructure that will benefit Integra as a whole. We look forward to welcoming the more than 600 Codman Neurosurgery employees to the Integra team.”