Replacement joints and complementary products for the extremities make up one of the best growth markets within orthopedics, but it's not an easy market in which to sustain success - small, innovative startups are disrupting the market (including hiring away reps), while more established players like Stryker (SYK) and Wright Medical (WMGI) look to press their advantages in product development and spread of products available. It was always going to be challenging for Integra LifeSciences (IART) to become a leader here, but the company really couldn't build on its deals and has finally thrown in the towel.
Such was the performance of the extremities business that this could be addition by subtraction for Integra. At a minimum, the $200M net cash inflow reduces debt and puts management a little closer to being able to resume its growth-by-M&A strategy. All told, Integra is a tough call - the company's neuro and wound care businesses aren't bad, and the shares look a little undervalued, but this isn't a particularly fast-growing company and small/mid-cap med-techs that aren't double-digit revenue growth stories can be left behind at times.
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Integra LifeSciences Bails Out Of A Once-Promising Growth Opportunity
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