JPM26: Integra resets by fixing supply and riding reimbursement tailwinds

Core Insights - Integra LifeSciences is positioning 2025 and 2026 as a transition period focused on predictable execution, product relaunches, and a resilient supply chain [1] - The company is implementing a "two horizon" plan to rebuild its foundation and drive growth through clinical evidence and new product indications [2][3] Group 1: Transition Strategy - The transition involves moving from disruption to predictable execution, supported by product relaunches and reimbursement changes that enhance the economic attractiveness of its wound portfolio [1] - Horizon 1 focuses on establishing a sustainable foundation through quality systems and supply chain reliability, with management noting that demand in 2025 exceeded supply capabilities [2] - Horizon 2 aims for faster growth through clinical evidence generation and investment in high-growth areas like neurosurgery and ENT, guided by a portfolio prioritization exercise [3] Group 2: Product Availability and Market Response - The success of the transition will depend on restoring availability in product lines affected by recalls, with recent relaunches of PriMatrix and Durepair showing early positive sales traction [4] - A new manufacturing facility in Braintree, Massachusetts, is expected to enhance supply resilience and support the recovery of tissue-based wound and reconstruction products [5] Group 3: Market Growth Potential - Tissue technologies, particularly the tissue-engineered skin substitute (TESS) segment, are significant for Integra's revenue, with the TESS market projected to grow from $2.6 billion in 2025 to $3.9 billion by 2030, reflecting a compound annual growth rate of 8.6% [6]