Integra Lifesciences wants to sell its Spine businesses – SeaSpine & Theken Spine
Integra Lifesciences Expresses Interest to Divest Spine Business (HealthPointCapital)
Last week, Glenn Coleman the CFO of Integra Lifesciences, expressed to analysts that the company is interested in exploring strategic alternatives for its Spine business.
Integra’s management team believes that Integra’s Spine unit would need a significant investment in order to compete in the market with Medtronic, Johnson & Johnson, Stryker and others, an investment that the company is not prepared to make. On the 2Q:14 earnings call, Integra’s CEO, Peter Arduini, conveyed that for Spine, the company would rather plan to focus on organically running the business than going out and doing a large amount of acquisitions.
Integra’s Spine segment offers comprehensive spinal fusion and orthobiologic technologies. Key spinal hardware products include integrated interbody fusion devices, minimally invasive solutions, and deformity correction. Key orthobiologic products consist of demineralized bone products, collagen ceramic matrices and pure synthetic bone grafting solutions.
For 2Q:14, the company reported that its U.S. Spine & Other segment grew 4% on a constant currency basis. This was the first year-over-year increase the segment has seen in five quarters.
Management imagines that a combined sale of the company’s Orthobiologics and Spine Hardware businesses would be the most attractive to strategic and financial buyers.