Overview:
Alphatec Holdings reported $177 million in sales and an operating loss of $33 million in the 4Q2024.
Integra LifeSciences Holding Corporation reported $442.6 million in sales and $19.435 million in operating profit for the quarter ending December 31, 2024, beating Wall Street’s estimate. The full year 2024 revenue was $1.6105 billion.
Nice Jump in Sales, Still Work to Do With Margins
Mojdeh Poul, president and CEO of Integra LifeSciences, commented on his first earnings call as president and CEO.
“Over the past several months, our teams have navigated challenges with dedication and resilience, staying focused on delivering for our customers and patients. Their hard work reflected in our fourth quarter results is what makes Integra the company it is today, and I am truly grateful for their commitment,” he said.
He acknowledged though that recent performance has not met expectations.
“We have critical areas that need to be improved, and I’m fully committed to making those improvements. Since joining, I’ve spent time listening and learning. I have had conversations with our customers, employees and investors and have visited a number of our manufacturing sites.
“These discussions have provided me with valuable insights into our strength and where we need to improve. And here’s what I know. Integra has a strong foundation upon which to build a bright future.
Our differentiated portfolio is highly relied upon by surgeons, and it is profitable. We operate in attractive markets and the demand for our products remains strong. I have no doubt that with the right focus on execution, we can unlock significant value.”
That focus, he said, includes addressing operational challenges to quality, manufacturing, and supply chain improvements to better meet growing customer demand.
He added that they are already seeing progress. In the fourth quarter 2024, they ramped up production in their collagen manufacturing center and they are on track to bring the Braintree facility online in early 2026. This will allow for the restart of the production of SurgiMend and PriMatrix.
Poul said that in 2025 they will continue to execute their compliance master plan and resolve any outstanding FDA warning letters.
Total revenue for the fourth quarter represented a year-over-year reported growth of 11.5% and landed within the company’s guidance range. This, he said, reflects an increase of $62 million from the third quarter.
The big drivers of growth were supply chain recovery, clearance of ship holds, the ramp-up of Integra skin production, and the successful integration of Acclarent.
Looking ahead to first quarter 2025, Poul said that they expect first quarter revenues to be between $375 million and $385 million. And for full year 2025, between $1.65 billion and $1.72 billion.
Analysts Push for Clarification on Continued Delays in Production
Craig Bijou of Bank of America Securities asked for further clarification on why Integra Skin production isn’t back to normal and why the scheduled maintenance and update wasn’t mentioned earlier.
Poul said, “So as we explained, it’s really the planned maintenance. We have maintenance shutdowns twice a year as it’s required to do equipment calibration, any preventative maintenance you have to do on the line. So that’s a schedule thing. I think the thing that complicated the factor a little bit for us is the fact that we’re not to our full safety stock levels.”
He explained that that has been the one thing most likely to prevent them from meeting demand in the first quarter 2025. He added that they have several projects in progress to address the capacity and resiliency of Integra Skin manufacturing, including improvements to equipment upgrades and optimizing the utilization of the three facilities that produce Integra Skin.
Lea Knight, chief financial officer, added that in 2024 they were getting back to historical run rates and that in 2025 that they will, on a full year basis, not only be able to meet demand but also reestablish their safety stock.
