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July 17, 2009
Share ThisIntegra LifeSciences Holdings Corporation (IART), a global leader in regenerative medicine, has entered into an agreement with Organogenesis Inc. to distribute the latter’s FortaFlex Technology as Inforce Reinforcement Matrix.
Organogenesis is a global regenerative medicine company catering to the areas of bio-active wound healing, oral regeneration and bio-surgery. The company’s FortaFlex Technology is a collagen-based biomaterial used for the reinforcement of all tendons of the human body. On the other hand, Integra’s Inforce Reinforcement Matrix is a biological implant used for any type of tendon injury that requires surgical reconstruction.
The new agreement would complement Integra’s family of tendon protection products and will bolster its top-line. The company faces tough competition across its different segments. In neurosurgery, its main competitors are Medtronic (MDT), Johnson & Johnson (JNJ), and B. Braun. In the reconstructive surgery, Integra competes with LifeCell Corporation (LIFC) and Wright Medical (WMGI). The orthopedic segment witnesses competition from Johnson & Johnson, Wright Medical, and Stryker Corp. (SYK).
Acquisitions continue to fuel strong sales growth for Integra, while negatively affecting the company’s true earnings picture. Acquired products cater to competitive niches. As a result, integration risk is a concern for the company. At times, these acquisitions have an adverse impact on the bottom-line due to numerous one-time expenses. We have a Hold rating on the stock.
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