IART Q2 Earnings

Integra LifeSciences Holdings Corporation (IART) reported second quarter earnings today, August 5, 2014.  Last closing at $50.01, Integra’s price went up 3.93% today after releasing their positive results.  Integra beat our estimates across all lines.  Total revenues increased 12.6% YOY, totaling at $25.8 MM.  Integra’s revenue drivers included the neurosurgery business which represented 40% of total revenue, and DuraSeal.  GAAP diluted EPS tripled compared to the same quarter last year and is $0.15 for 2Q2014. 

Soon after Integra’s optimistic conference call, they announced positive results of the clinical trials for INTEGRA Dermal Regeneration Template for the Treatment of Diabetic Foot Ulcers.  Integra expects to submit their data from these trials to the FDA by the end of 2014 and to commercialize the product in 2016.

Going forward, Integra estimates FY2014 revenues to be between $920 and $940M, and FY EPS to be between $1.06 and $1.24.  Our investment thesis for Integra remains bright.  Since our buy-in price of $40.41, UASBIG has realized an upside of over 23.75%.