IART - Earnings call transcript Q2 2021 | Integra LifeSciences Holdings Corporation

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Operator

Good day, and welcome to the Integra LifeSciences Second Quarter 2021 Financial Results Call. Today's call is being recorded. At this time, I'd like to turn the call over to Mike Beaulieu, Director of Investor Relations. Please go ahead.

Mike Beaulieu

Thank you, Stephanie. you Conference the Call. thank Quarter LifeSciences and Earnings XXXX morning, for Integra joining Second Good

Operating Anderson, Joining Second Arduini, we quarter Executive Chief XXXX President on issued and and me the announcing Chief Officer; call a press Glenn our Earlier Financial Officer. Chief are release Peter Officer; today, Carrie second Coleman, financial will under call, name the at integralife.com XXXX reference Investors, the with and Quarter is release and earnings and Presentation. the Along Call during results. presentation, we Presentations Events which Earnings available file

filed and like we begin, forward the in Extremity revenue reported effects divestitures, growth. both remind Before are disaggregated cause materially Exchange our of of to level will as made statements in with otherwise and products. during stated, franchise Also based currency; all that release. rates Unless revenue reports in Factors call I'd actual the including acquisitions, prepared foreign considered reference the organic performance. to including be SEC discussed ACell; well as organic remarks, you to we differ Orthopedics growth company's are sale that and excludes on may results discontinued our could growth revenue make this the business; looking. Act the Organic

today to Form on SEC. the call today's release, report turn which press today financial comments Pete. measures. exhibit measures in found Integra's that, Reconciliations filed will current With non-GAAP our include certain now with financial is Lastly, be of over any I'll can non-GAAP X-K to the an

Peter Arduini

in raise full morning, results pleased I'm enabled year guidance. to us reflecting to morning, strong our you, Thank good which Mike, the momentum continued business, and this the everyone. report

were a XX% year. Slide organic million, deck, If of $XXX growth and performance. X review representing compared revenues Total in with prior to the you'll our growth reported XX% second turn of quarter of begin I'll to the

and much April provided Sales coupled in Sales growth of X.X% of with XX over high gradual segments. represent of a compared margins performance, of normalization the acceleration integration adjusted in much in approximately very drove guidance in The our launched Our improvement their to business, products capital. franchises in were somewhat end year-over-year in capital both products the above our across rates from especially of XXXX. to encouraging organic nearly second in are recovery growth and Based showing we revenue, half, were quarter growth drove in the our equipment vast months also our respect second second of last of the favorable early per majority strong particularly and in quarter. some offset of trends. robust performance indirect EBITDA still of earnings XX% on share commercial and of our by markets and with the $X.XX. with our Higher teams, savings strong mix we the recovery our feedback expenses. was Profitability expect

$XX to our continue our million half, achieving share performance a path our targets. of our full the full of range per XX year long-term by revenue XXXX we're half As our year raising and and through for first expectations our to recovery second guidance our result May to adjusted Day, a to laid $X.XX $X.XX. earnings new out a we guidance Investor On

our Day strategies, opportunities I'd website to presented tissue encourage and Members catalysts our watch is Codman business highly market detailed the at long-term recently, the in of the team X neurosurgery of focused inflection and of our integration leadership targets. to support Following the webcast. most with integration, business Orthopedics segments point Extremity divestiture and you and regenerative technology. visit our an Integra ACell, Investor

operationally. down After stepping at CEO transition. I'll President an Please X. in a XX and our model of be and incredible and turn priorities ensures XX, consistent on Slide years, company company leadership both business the position and the day-to-day a June as how in GE. Healthcare illustrated a drives On alignment strong announced our Integra is we operating strategically run to of we As basis presentation, to run execution. we The

we leadership have by capable an the company an strategic plans, has year. growth committed has internal our firm pipeline drive Board appointed to external The for Our the new and successor, a process market to and The executing seamless swiftly, products market formal of team candidates. come. to special a a transition and moving a process committee, a including executive outstanding end of we retained deep expansion search years identify both of initiated and is remain to and

and developed which the have that a call accomplishments deliver over discuss strategy, quarter flexibility successfully growth to has to we to the this by top team Glenn Board, And strong that, our will is was profitability. in coupled full with the Our management of plan. our with backed detail. and model. to strength faster line team confident operating this financial this like I'd the management and performance second execute in and strategy, more And the Glenn? turn I'm by support consistent

Glenn Coleman

morning, Thanks, turn to Please X. Slide everyone. Pete. Good

catalyst to As operating a of the performance discussed our made to we our during results including an second better like was quarter Day. quarter, May our than highlight the I'd to few at of indicated, factors we that Investor progress and update the Pete expected. the contributed some

increased burn a products million Our performance which core This the or and of organic by recovery our outside It to China, in the $XX was portfolio in and recovery surgical in of both XXXX. double instruments, digits growth U.S. with was by versus neurosurgery, in X%. Asia reconstruction. outside second broad-based led strongest was compared grew in Japan of trauma U.S. Pac led quarter XXXX sequentially the approximately and X.X% Growth XXXX. the X.X% and U.S. total

U.S., Excluding indirect organic XXXX. our the approximately was compared to our growth international X% outside business

integration are force during slower increasing our penetration to of as expected leading of of continuing teams than hospitals integration the Turning and surgeons into all has commercial of to Having accounts. access ACell, sales pandemic the new critical ahead more schedule, existing challenging start. the a restrictions completed and result the to on components said that, been a were and

We few and outlook term since cases calls expect Carrie provide short on for our minutes, monthly. a growth will the in disruptions to and we are increasing in our nature these details confident expectations ACell in-person be portfolio. additional long-term sales remain in

CereLink product will usability enhanced introductions, to monitor market resulting our new and provide third CereLink, patient accuracy, advanced will next-generation in pressure data Turning a in release of controlled begin quarter. outcomes. the analytics intracranial better

the get are quarter high plan high physicians, Surgiscope of from of level rollout interest a have with global excited our The Aurora third another this product underway. offering, place clinical to a a to We part and surgiscopes and large priority is of number as evaluation. installed seen base, limited in we

cranial targeting we we platform invasive neurosurgery. discussed detail our we'll Day, clinical invasive our the minimally and at is leveraging relationships removal generate sites As will our insights in evaluation, proprietary believe at minimally gain evidence to select protocols for KOL are be with help therapeutic define this instruments. scope initial Aurora using Investor area tumor we the In and

to launch in position We commercial us XXXX. second broader a of half the expect for this work

this and redefine the cases. potential or leverage to scope intracerebral track extraction of of our platform device has combination ICH standard care. surgical The to technology hemorrhage on and remain also customized We for intervention the

of weeks of in healing outpatient currently new XX, progress, PriMatrix a to care. designed we to In PriMatrix. forward detailed in effort clinically is commercial foot a drive prospective clinical registry, significantly collect XXXX, in in ulcers. with expansion. few evidence we'll an and comments we robust to PriMatrix cases, ADM PriMatrix statistically an catalysts payers for for I'll online mirror this results wrap U.S.-based ICH randomized multicenter the controlled versus more which and the Wound significant Our update results, that look have midterm up the Care On of and year. of standard treating enrolled This diabetic our to more a over demonstrated half exciting of time July and market list this is published found DFU important later be Journal second and as XXX trial reimbursement It evidence the with is study XX of a XD. sharing expand study providing short patients, on hard-to-heal clinical NeuraGen DFUs

XD, the and porous leading channels has NeuraGen track conduits and repair a our of to peripheral on provides product of solution regeneration. portfolio to full for access XXXX, months intermatrix nerve the guidance. wraps fast-growing X repair nerve to remains first innovative a We've of will unique Finally, accelerate confidence This larger portion which our our for us NeuraGen market. nerve in gives XD's lot launch. raise year XXXX a expand accomplished the

quarter second Carrie hand I'll provide to the Now review our performance. to detailed over a of Carrie? call financial

Carrie Anderson

second like Glenn, our morning, summary Slide highlights quarter start XX. on good with a Thanks, and to I'd everyone. of

our range. an approximately million of revenues segments a by in including the XXXX. basis international basis broad-based, on and well compared compared and prior an were XX.X%, gains driven total points in mix, to organic revenues of favorable quarter improvement end was product organic were was year. representing quarter in to Compared was XX were markets. the Second XXXX basis gross of ACell. above as of better-than-expected the $XXX basis guidance an XX% second and in addition high to improvement and in including XXXX, XX% to both recovery and Adjusted quarter the of organic on compared Revenues positive growth an margins XXX increase a X.X% $XX points million, growth both reported the our U.S. as U.S. the These

manufacturing adjusted call, gross expectations. on QX as costs higher QX gross in first by Our the margins But impacted better slightly supply. related were earnings mentioned adjusted to our half in margins came labor our tight than

gross than second experiencing keep first resulting lead increases modestly margin challenges outlook, labor Day half These chain adjusted for select of gross half. our and XX.X% to the lower range with We near year supply higher end in likely should was longer into in half, though, second will adjusted Consistent us provided are full and the that be our some this times Investor sourced XX.X% will meeting. margin during materials, the freight. also of persist

and in cost last partially response gross the also commercial of to QX pass near-term inflation EBITDA the from to XX.X% will prior pricing. risk which our largely period margins. same the are We exposure. increasing the EBITDA and higher operating into adjusted of benefited expenses, gradually from are adjusted following improved these to the margin Any higher in factor were opportunities impacts from pandemic. about margin year spending global ACell synergies. closely have year significant benefits by These inflation XXX higher watching revenue the supply thinking continued reduced material through points basis levels benefited cost and reduce offset along contracts

for further XX.X% the the full in expect share And adjusted half, in finally, increase compared and ago. year was EPS an we $X.XX Investor for in product plans, Due for highest per expect XX%. now Day first quarter second the company's our million, a our to provide on the earnings range the growth May We operating of end $XX the was second level gradual year I'll high to cash in moment. geographic full quarter half, year of a of in new studies. spending Adjusted a $X.XX further update history. EBITDA flow to a slower investing slightly our adjusted margin above expansion second expenses clinical ramp

in our and from basis. of basis XX, prior basis organic was Both XXXX. CSS on XX% CSS neuromonitoring neurosurgery, organic basis down. now in second of compared If increase of low and our while Sales advanced dural X.X% CSS sales recovering to were XXXX, to on impact XXXX. digits, instrument XXXX, performance an to increased repair compared increased increased $XXX Within energy, an double in approximately increased digits on sales to organic CSS turn all digits neurosurgery to Compared the million, organically a management double and approximately XX% single year. COVID-related each between global slightly franchises and Slide access an high you revenues reported review I'll segment. an on sales the QX the of from quarter

in all Second quarter digits digits in Compared regions nearly there indirect X% was in markets. in Asia our organic sales Pac, as and especially single prior sales low compared CSS the but sales to instruments increased digits to XXXX, across XXXX compared variability international European Europe year. declined increased in to an double basis. International increased on recovery, double our

organic segment Tissue prior million, on Moving basis to and sales of our Slide on the year. from in were on a XX. an Tissue an QX Technologies XX% $XXX reported increase basis XX% Technologies

an on at families mid-single Integra XX% we to increased look digits. and wound and reconstruction in our reconstruction basis demand increased all wound due surgical a to double our compared driven markets. sales XXXX, in digits and in performance organic with product double compared sales Skin SurgiMend led XXXX, timing was trauma major compared in single quarter to XXXX, by increased Sales reconstruction Second compared our sales If burn, declined XXXX. digits to XXXX from private recovery digits partners. by in label in order to And low increasing

I'll the expenditures of If turn to earnings you year, spend and on likely second cash full provide $XX during cash lower million to million flow in will was for flow We capital structure was free second $XX below sheet, and capital our do XXX% remain but the Slide timing. flow to flow. was conversion the the quarter, Free in from half Operating year. brief capital and expect increase $XX XX, a cash balance a due benefit update the reflecting quarter cash million. higher

cash flow while conversion. quarter Our of the repaid X.Xx, months consolidated our million $X.XX $XXX XXX% operating improvement and the cash the XX, was a $XXX at free with first debt and leverage free In was over flow million cash balance an $XXX of over the for we flow XXXX. QX, December ratio quarter at million. the was of X of debt of cash ending million $XXX X.X still with Net year of from turn billion, total strong end

XXXX. consolidated provide update I'll quarter the revenue to year share third XX. adjusted and per earnings our an full in Slide guidance to and Turning

are to For in the reported growth the beat for X% growth adjustment year growth the of and new representing range to the XX% X% ACell upward year by a quarter, to XX% XXXX. $XX flow-through our new revenue compared reported of midpoint $XX And of we full third full billion forecast $X.XX range reflects XX% XX% of to million. of million billion. guide revenues a at This revenue range. XXXX. Embedded organic X% organic $XXX new guidance of for we our full X% to to guidance to a quarter of of in The our compared million be million, XXXX, $X.XX $XXX approximately of growth million the revenue and to is represents second to original range to $XX increasing to range

accounts We are in as as improve territory and actively access existing resources working well and new expand customer to coverage.

remain in quarterly our We accretion -- expect and sequential sales our improvement targets the second half X of track. on year

year compared half other Our offset And range with business second guidance of strong XXXX. to million. our our performance of CSS we full midpoint a and have in ACell. compared The result, X% $XX guidance our XXXX TT the and of approximately represents slower parts as revenue revised organic by raised growth X% start more than to

range which reflects of Turning sequential in the to improvement guidance in margin. EPS adjusted third to expect $X.XX a XXXX, be earnings to gross we adjusted adjusted quarter for $X.XX,

new XXXX we full adjusted EPS approximately that, $X.XX, representing to remarks. to turn increasing the back are of XX% a With to compared the XX% of closing range and some to call like year, compared midpoint for I'd over at Pete the to $X.XX growth XXXX. to For

Peter Arduini

Thanks, Carrie.

summarize If XX, you takeaways. I'd few of a like the to to Slide turn

are the pandemic when recovery And months. confidence that the coming coupled were both we're healthy about optimistic half second year the completely to said, with us half be strong. very clear XXXX. businesses strong in But across for we bottom with hope We'd performance COVID our us year. the behind and the on the be very first full the recovery all seeing half, as in effects outlook for gives we the second of full would it's a going all top geographies, line. us That outlook second globally to and and year recovery our of Our trends lingering now and our begin that half raise remain

critical hybrid the to many products months. regenerative respective exceeded position their in beyond, products neuro tissue over the implemented more therapeutic continue growth raises drive will are better tools business both all product advances our care quarter, we're adopting a and our of platform. new and Aurora products neurosurgery. first Each innovative levels, while will We the these XX through we digital a our CereLink, we've last and launches invasive believe and scope, technologies 'XX And of in many meetings, to the deliver surgical leadership look the represent leverage forward in of the neuro teams of second bar breakthrough parts our environment. In that patient markets within and in our we'll minimally returning outcomes growth these from that business advances. Our in-person to to pre-pandemic monitor

half For sharpened in in place capabilities put focused the and We've leadership future. into remain for greater year, shareholders faster of we and the drive 'XX the value growth second and on execution. and the to team operational our strategy

for And mind, lines So that remarks. the please concludes our listening. questions. if you up prepared Thanks wouldn't open for operator,

Operator

Instructions] first with comes from Our Steve & question [Operator Lichtman Company. Oppenheimer

Steve Lichtman

you of about here into question the guess sense the on seeing in touch I XXXX? to you a past lot you've and rollout CereLink the then of competitive with talked old wanted How is with there Codman targets half growth first contributing the to the outlook XQ. what launch both us potentially I of potential second out on pending give systems. are and systems in a Can in CereLink

Glenn Coleman

first I'll some maybe the CereLink about features we're why of and just off Steve, and start of it's differentiating Glenn. it. highlight excited

drift. are is less the the The that products MR on more on compatible. microsensor sensor market best durability it's flexibility than market. the other First, It's and accurate as

you and that -- product actual on it the can tunnel advanced waveform bending or doesn't think presentation, versus really have it it, which as So kinking then it's surgeons coil you got reading. this can capability. And because it data like a of point-in-time

burden can part keep excited really you features is largest time. can inform ICP neuro to is So new And out. addition are the data which rollout. an clinical important to this mind, it having that's in we about we going over measuring have of historical pressure measure and in why product rolling And force some that sales decisions, this be those

going U.S. to launch sites quarter, release in in U.S. we're of the a handful and terms itself, the outside market controlled the So of do a here both third the in

So revenue the controlled don't third expect quarter release. a lot the associated of with in market

We though expect some we pivot in the hitting full we see pent-up revenues And out. the a year this for probably market which same demand, X the in move we're X to I a to release next in quarter. about China growth years should really fourth years like around market a once time CereLink. going thing What at so We do the sales drive then to that's then though, in or The we really product, will that XXXX. we'll XX nice to about release. uptick fourth have launching XXXX be peak quarter where talk in to frame, additional U.S. nice full in be we though, look market is is, when

purchase path a to number the just disposable capital the So here upfront real bring growth us, to well. of we on see this but not also going as relative of years a side CereLink, to the for it's nice

seeing we China. how probably on color some you there's of Almost that it. in gives are out those something there that replace. half units But to Hopefully, X,XXX could close we're So

opportunity are years, X and share longer-term the base XX but X real the about today. not excited the next installed So just that's we're from take why have aspects that the here to market others market years, in we a the upgrade big to next the of

Peter Arduini

think fair these installed old. to over XX as say base of our are and I mean, the years some I XX. items both installed it's competitive XX to most out base well, I existing mean of is

critical you And so lot of cerebral of need of that metrics. most think swelling know there's this brain clearly the I is pressure, a a one idea

deal. so about the Glenn is features big And talked a having pretty

So excited next the about over represent X can really what we're X years. this or

Steve Lichtman

And translated, use Got -- then Carrie the performance higher, sales with mentioned, ratio that's Great. up cash terms in here M&A pick the more Do EBITDA secondly, it. we in again the tuck-in just the comfortable of technology in higher as you coming on coming you anticipate half could leverage now are cash. the and the on in side? to see M&A of to with with where the some first quarters

Carrie Anderson

Yes.

think, I X.Xx and sheet a now on terms target the with of right balance got now. we're on we've in of X.X, flexibility X.X you're window that -- lot leverage our at understanding usually to is Steve,

be that We with to So can areas talk focused Glenn? support really in about our that us flexibility prominently always to let we're of M&A allocation M&A. certainly give to good part want side. that opportunistic been the I'll on, But the continue of strategy. opportunistic balance sheet. and on capital some Glenn has M&A be on to

Glenn Coleman

of It's it. flexibility. the the approach cash X team flows lot and performance great real of job. And And past X the nice months done and to does have to we balanced a Carrie provide a of to that a over take see business months the

prepared to growth And including part core business, in fuel by walked that what then, my the M&A are big I as needed So through some investments the actual is I of in is what that of a obviously, mean that well. remarks. catalyst

a the as Day, we core are acquisitions As for competency about during talked company. and integrations a Investor us

talked in neurosurgery international a opportunities at still as we're so regenerative with necessarily have And to we at love We're and how can plays M&A. China, to get along disciplined a but And leverage But year, done remarks. but tuck-in on be where of we to We've looking partnerships, places so that listen, to number during business. I'd out. large pipeline. the of looking remain end not we'll great landscape then in technologies, like got see the on our our adjacent before going to name acquisitions. right But are quite got high going about the we doing are the things couple deals M&A commercial now, flows, acquiring licensing look on expectations very valuations at our able Japan now. we're focused channels two. in that We've right as prepared around cash

that really in So from out. we're good a a But of of we'll have position balance to and plays see how flexibility sheet point some view.

Operator

next JMP Dave comes Turkaly question with Our Securities. from

Dave Turkaly

Just delta to you as highlighted that, a when start that in for, space, lot folks? going it think reps? biologics in think duplicative just can't of the well? about and on of restricted specifically? kind there's curious, is Or just that get the or you be like they Is terms is in to year with, ACell mentioned should or of you $XX of you million talking of access how but about going we fewer some I'm the there's I are should I for And know say looking it sort it that the so we -- now. headcount that think we're turnover as

Glenn Coleman

Dave, it's Glenn.

me Let take a one. at this shot

really overall So synergistic into think, is a ACell first nice a has fit I asset, it and our great business. off,

itself, In All the on ahead really functional terms of areas well. integration are activities running of the the schedule. or are integration all

well. inherited, all going that X all think of functions, organization, the really we that's office that back quality So as plants distribution,

had to profitable. So business be beginning this let force to do me a assumptions to of integration And the was to of you we get one in that the order had year. sales the take back we key

short-term you off not actually been was environment. difficult profitable just reps these are integration business. a handing a this facing in-person new face-to-face virtual relationships business, that force I is and The get has stand-alone that a it's sales our that, challenge versus as selling to well. products, As the more gone really tell selling And would we're

we Having I lived theater, momentum think really hospital access more getting access to to are the been that, being going it's as access. that's happen. the month-to-month, the into for challenge need and help we ACell But see will had improvement. growth come. get to the start more will is and seeing have sales the good said we because sales we And The news business. restricted a

around before, surgical enabled of to fact quarter. And performance quite the portfolio in existing business that I have this around confident and in conversations And like great the complex ACell wound business, us and you And nice so positives the is fit. one our new we mentioned that and feel a it's base reconstruction. current the saw it's with also our things

our U.S. sales If we PRS look in and in XX% at just U.S. the grew you reconstructive growth business, performance, mid-single-digit reconstruction or over in our plastic wound

And the base well. business so positive getting benefits some in as

So anything add want don't to to know you Carrie, if I it.

Carrie Anderson

XXXX and way the our the half. The change doesn't my a for just it ACell. the look that would hitting an start I I reflects in Yes. but perspective, year. I say guidance at accretion target. from the slower from improvement a look we at second the rest is derisk everything of guidance a outlook quarter, but slower mentioned, Glenn ramp It we for had second

really everything is the of of on fact nicely. track the And because second the we But there. half. derisk quite performing organic of really is business, the rest base So business the the that

when $XX ACell we by but bit, guidance, guidance up think million off underlying the took base came about million that business organic $XX million. embedded guidance. you little in So to was a up $XX

Dave Turkaly

there. dural out, the markets just Or accelerating is strength I or think kind as sort neuro do But Codman mean, of your access. follow-up, strong side always some and at lagging. as any it CSF, sort has these you called of some of been guess things are the the and I your thought performance, guess of I look portfolio? those you of Great. really of you thoughts instruments, a as around

Carrie Anderson

were the in those of QX, it with In weak. went we Yes. a side in in little wintertime the February. of and And was that the surgeries mainly some to business due -- certainly, neuro was the storms saw

little nice trauma and in side, And procedure-based well. second that, weaker or bit piece business, some as procedure but the a pent-up absolutely quarter our improvement the some sure see in really sure, I'm business, to deferrals instrument the that's side business. there in that surgical We Whether pieces benefited of then know the doctor the demand, but would ultimately on hard it's saw of we nice was of we half So markets. for think are lift well the it side of of neuro particularly bodes year. that indirect burn And of and well. not second the at there was capital, like which are a the saw the And side we the the expectation office quarter, recovery. the some in like still did. Dave, reconstruction the we instruments, as XXX%, second business our saw parts for that of

so And to half, it strong I I move second move bodes well and all cylinders, into getting think a the everything half. we as think -- on second for more

Peter Arduini

I then new would of keep in multiyear the mind, launched hit. have we've coming of Codman portfolio number COVID in that just ramp a and add, a to XXXX, Dave, products them out

And so we we're that see first, never now. which starting saw the benefit to year of second ramp

products portfolio, to COVID. of surgical momentum we're we our we headlamp, the now that CSF of a in rolled out, the Certas coming at gaining DuraGen out So look Japan, these all in valve number coming really these that are addition back, enhancements our procedures toolkit,

in And driver terms of stellar what in you're performance so of neurosurgery business. the seeing that's another our

Operator

Our Truist next with Krum Kaila question comes from Securities.

Kaila Krum

Great.

sense higher your is third effectively assuming that relative me, X% grow So of third XXXX. your because And guidance, QX. assuming has to goal I mean traditional makes only to of down is quarter I up step about the And or that midpoint QX than been the -- to that. business the I of a think just that you're quarter you're from guess also to at seasonality

me through walk of the about takes your quarter sort the you're and puts thinking just guidance of some third specific just you to can and there? So how

Carrie Anderson

Yes, And think that Kaila, correct. you're I'll take it one. I thinking about exactly

within vacations comprehended If at QX about historical holiday, of there's you is look summer seasonality, guidance holidays, of Because happen, to flattish. our typically, that patterns QX kind there. that's and U.S. European

responded that it think question. Dave's pent-up as quarter benefited do I from as performance, again, addition, the deferrals in to of we second relates I demand In some of to the some

kind you I guidance, say related that, The flattish down it some are within get a as our variability take normalize numbers, on we to And to continuing end the a at little growth do organic we to type -- compared would relates the which recovery the of delta time, QX that impacts variability And low so the to as implies of vaccination bit rates. potentially. comprehend of and X% number. you did same ACell variant those at business. base XXXX And

you've the -- So far set you're that. nicely QX would trends Kaila. we've thus I but think and support thinking it overall, is correct, about up that certainly, -- And got seen we think

Kaila Krum

to business guys Okay. Great. base doing you makes next XX you're much confidence sense. The it I better sort of That that recover mentioned, is ACell performing so the can is guidance lost XX in a you cutting full gives you ACell what are mean, better organic had lifting And expected But the than then expected. guys months? But is the then for contribution. year. you've business? as that than the in over you lot And revenues those

Glenn Coleman

Yes.

are in why our the to full confident board really we're year base business, and numbers seeing it our the relative in businesses. we So across disposables guidance

of business. really repair our seeing We've of has nicely. capital, side And wound tissue we're in the business, well outside both good the Instruments come some on business. Management back as seen nerve PRS strength strength we've growth, side strong as our side. really the CSF So reconstruction on good in very our seen

where quite but are those general, in areas know want anything not trends, piece both X normal So to are all the mentioned laggards capital, I which if positive actually The to you in would Carrie markets indirect just add still we'd say, well. that be are are in environment. that? spending I showing don't to Pete, a them terms like of still doing

Peter Arduini

Yes. emergents. the if I I Carrie remember elective the showed, where obviously think It's neuro about the on year scale first-in-line picture would mean, it side, charts fits bigger just the one on you emergent. versus of of last

on brain or by our those as could team traumatic because and up, businesses, necessity. the had into neuro look procedures. only of the certain far a opened of you people Then things many time pent-up increased. type reps those the And. have was procedures TBIs first injuries Obviously, procedures wait of some our these to at X hospital sales back that have in get level really OR If

to products, addition breadth portfolio, new again, with the going the our going And to product of think, we that's with so it. these then And continue. that's fuel of continue to

the So from our in least perspective cases, access over at a TT of of as quite running we're start far actually had kind a good neuro, spot. But world. some as in X-month

Glenn Coleman

too, would to have direct better the in that I U.S., outside outperformed And and expecting we're just why in which are guidance we raising is seeing we're expected than and markets confident our Yes. say, continue. our

about certain well. such markets we've Japan really and that So Asia, as talked are China performing in

Europe certain expect in are that outperforming. direct markets also We continue. And to

And had international Can that? to and would just quite a highlight the been I question repeat performance ACell. expecting continue. you you good, just also has so that we're Kaila,

Kaila Krum

Yes, sure.

ACell? sort Just guys next year? confidence months recover going of can those what you you in over Again, that lost XX, gives revenues XX next the into

Glenn Coleman

do and think being great The able this see being start we'll work. a the not better I the few that to moving then think will No. to start challenging terms year, you'll performance the we're And done term integration business. in next at over we next access of has again, real is selling. Yes. just Listen, short the and that expect. to job And is in-person moment that we rep see subside The nice a asset. the issue in the of months, face-to-face into because growth facing team sequentially

that great through COVID asset and challenges this short-term confident And really the moment. work at that caused that a so very we'll by the are is we're

Operator

Miksic Matt comes question Suisse. Crédit next from with Our

Matt Miksic

in the good look should to but Pete out opportunity say team And into I succession, the come seeing congrats on sorting luck play. all and forward that to

of haven't other of comments that those folks just lot -- of you heard the the made. -- I'm and on types we since the type ACell But space. that So to a ask access changes a rep after from in follow-ups sorry couple of challenges

emergent rep difference first reps is cardio also on, point that your it, products sort support in ortho understand that's and clarify, Just don't cranial the thing. in surgery I'm lot between about cases between and to of reps and of acute but some for being being to words call put the facing? bringing cases But care priorities mouth, one difference a has point what this We for is you're is and products surgeries came I back. you the But just critical a maybe spine difference. given around this access ICU a -- hear access. of and so to different to just to and want the new new set selling or new trying out

Glenn Coleman

Matt, question. it's a good very Yes,

of be first often definitely a need a our rest of nature more ask neuro invited the neurosurgery emerging surgeon rep for has than So in to of in all, to in the the for come portfolio. and

particularly an you some a So to item. it. here carried-in buy, been point time there with your new wasn't one on important doctor. the NPI get we rep you're product, needs There a a clearly stocked it account item, if created if really other to either that's time and is it some of you or that's in -- discussing a inherit one that But it for be a if a needs some to was shelf, is, have an the be that we

and the time. And from January ACell, transitioned those time And legacy rep. the It's of knew that so case look, needs significantly. using the doctors really that product territories ACell this most it. a of at up that we of we with most to second. in the access takes those rep a and it, reasonably And midst in of into rep the now opening certain that's handed for COVID. period, the to really off We little core an to in doctors Integra were bit and Integra in that In get see the was more limited first quarter

a equalized I that increase our kind guidance it's come that Carrie to And think wildly had into our why won't no and fixed to head now. way of longer be portfolio. a reason but but in the expect half, there's successful here get such It also in be said, be back do. we product slow make I a we the reflects want we we out for But think it second positioning in And up back product, 'XX. it we we'll term as where sure everything it complements this we're we as appropriately. start,

Matt Miksic

if And on follow-up, I then could, X That's great. margins.

of mix expanding from reduction appreciate Feels little on the it margin the better, about I a progress slightly the in sort on great opportunity Carrie, sounds about clear gross like to bit line. Can sort of So see EBITDA. expectations? And you and in were -- the talk color the maybe ACell gross like you that's or slowness worse else this contribution, you anything to as the happening process comment ACell. of anything different, a the that related or terms there access or better margins. in on EBITDA of to else specifically of the sort Is headwind in in can coming or integration the pace it's whether

Carrie Anderson

it our high gross meaning very in portfolio. perspective, a Yes. additive, from it margin Matt, comes gross healthy, margin a actually was I would in say

as does support it So a it continues mix favorable to grow.

bigger move from and we a drive track get the see favorable quarter to continue in back on ramp to second start as It and mix. XXXX. will So we obviously

just mean on accelerated well second from it's -- on perspective, we've So we're of We've what margin. track the that that. benefit I some call of seen to quarter. SG&A I some overall, that synergies, contributing gross would then on And the in type we're that. --

those do is what needed we it it, piece on tracking that our when of realization So of was we've achieved was to the terms obviously, acquired business And of we was synergies. schedule definitely of in business. Remember rightsize sales And big synergies. to that breakeven. it ahead A channel. of that part

our track, quarter well on we're benefit mentioned, Glenn second in As I've seen numbers. and the

mean, the I the hit dollar is perspective, you when favorable. from little certainly, yes, bit don't But So margin a revenue. overall, mix a you lose

Operator

Jefferies. from Our comes Petrone next Anthony with question

Anthony Petrone

been level as But from a Peter, that as on remain look want remarks, like sounds Board to congratulations the I'll it to Maybe the transition. one, It is largely prepared in thinking from And that relates good has mindset Board on it years, the of couple you the this to transition been as down? sort which your broader of does anything Peter, has strategy underway. luck team where last I And the And has second, transition reshuffle place Maybe as ahead, to Does a just over several the intact. the going about strategy the follow-ups. to also the portfolio a slow strategy. really they're accelerate? move. have gets

Peter Arduini

a from we've integrated think Anthony, Yes, have I've I kind a Board, been standpoint, heavily a way player. in leadership keep to come. assets position, a a Board hospitals big areas is From bottom where strong only was to been that. for assets think we of be last can able demonstrate they're standpoint. much top years pretty do the can our I strategy. consolidate, the that to relative going over growth, involved that part again, is what future trying as with we or everything having And continue bring know we active consolidates, we can And And because we've of very competition communicated obviously, where I to have reason and the both you to is that think x

have obviously So aligned. from adjacency think neurosurgery. standpoint, On that the obviously standpoint, we Board areas I is very future much to a

at argue that neck some level. from up, can we expertise have the You

about Investor as a interesting so We've we And TT We've breast. on there. about areas than talked talked nerve. there's moving And other talked opportunity. we plastics. hernia. mentioned We now, wound the -- of about scenarios big talked at is Day, lots about broader within care We

and All rates. margins have growth accretive of those

grow expand plenty And whoever think to but base continue the very the I much point pallet think Board, business and of to think time. role, that's Board the so out to kind areas. of it. how a with laid I what opportunities for I the into this is And can't nice in think aligned they'll And have I other think at see I I speak pretty I we've into faster-growing with comes

Anthony Petrone

follow-up to congratulations on on transition. team good The the again, And margins. luck the you would and and be

LRP XX% the the to going back to for XXXX. Just margin target, XX% EBITDA adjusted

does margin the sit be on trying seem as But the get that LRP offset, the Aurora, term categories, revision new in just handle to near Perhaps product breast, a SurgiMend, the that a given CereLink, certainly, ACell as all headwind. course, the Just to profile mentioned you here. ACell of target? in set margin Pete, those Where tailwinds.

approach complexion in So contribute as where that new does Where mix XX%. ACell the just XX% products the and maybe to equation you equation? and now sit that in that

Carrie Anderson

one. an we And in that that terms SG&A target will our as the been margin as EPS favorably that we that XXXX. nothing able margin to would not as track take expectation that in X. That's I'll suggest of in year to accretion from on back hit Anthony, mentioned, Yes, savings well in cost There's we profile, both perspective. additive achieve. be gross our it ACell, is And for will contributes we've expectation our additive our that being

think I XX% intact. EBITDA gross those of margin, all XX% long-term about still levers the margins, are As

gross with so margins, And a to that refresh in as just reminder, are. a on margins. Starting continue just be gross us there's for tailwinds things number levers of those what

of the with mix pieces. those start Let's piece

XXXX a next opportunity revenue well you as that in very have as about CereLink, our about all, mentioned, of at recovery, terms positive of lift them. for yet think all us not as And opportunity for direct mentioned, growth we First margin be think we revenue of us. XXX% in capital Glenn portfolio for as still is year should as nice

higher overall, the which the side TT has than CSS. margins business, have, You of

integration that. big that efficiency, some at TSA initiatives end gross bringing products all that down then wind the the favorable again is Productivity strong X that lever will manufacturing. of side X the out we on the the recover, including year around to provide is last continues carry of margin with margin we've lower is got ACell to Codman so agreement exiting lift. gross as those One as there. business And margins, discontinued And that And helping. mix of

which as overall, by just help our -- should in improvement. well. we're we've revenue France a the recovers then just As facility leverage got well as closing end as help And productivity of SG&A XXXX,

of that So allows on XX% EBITDA of stay the us a path all margin. type would of to

Glenn Coleman

would fact just through prepared highlight catalysts that that Yes. remarks I in And the key are I all the some walked average. these product the to and of company new these accretive introductions

so And for at margins. are look those our all you drivers to growth short midterm, to tailwinds nice us when to going those relative in be the

Operator

Zimmerman with BTIG. Our next question comes from Ryan

Ryan Zimmerman

team. the and Pete, Congrats,

you those costs. some pressures you just you where you're I adding bit kind want inflationary along, potential side absorb inflationary the about just of category to specify product you pressures? freight little for just the And you of Carrie, higher some margin talked mentioned where seeing that on little a other and within a where So versus price. the to ask of Wondering areas that can maybe intend specifically could pass bit.

Carrie Anderson

Yes.

I'd Certainly, now, the biggest market. around say impact a of right So is different labor tight couple the things.

We have open factories. positions in our

our it's because We happening ramp have a full fact to idle don't you open creates the trying team positions cost capacity where in some have factories, in that SG&A you're areas that as production. up our of

up. don't select some your However, it have wage we're are to side seeing second the on pressure you we And positions side on at is because the all where certain area the filled. labor ramp sites SG&A trying helps

wage example, ramp an Boston, side think some important pressure that's and as we seeing there. As to we're about trying there as up an

sourced really that point, most long-term think I got that contracts. successful. some right lead dealing In limited amount freight But terms the costs for we've it materials of just expedited We've the we're as relates creates to to side, it's with. now supply been of longer select times

have We internally opportunities initiatives. to of some with that offset

It's a seen the material something watching we're what very, to call, We haven't carefully. yet. price. we opportunity inflation do have very So I'd lot of,

little side I'll price. as have We have there look there, maybe side say a CSS TT Glenn successful But at approach through of on to we pass the bit have in well to to Glenn? our both pricing. the the terms opportunity been would opportunities talk and I as

Glenn Coleman

these teams. obviously, pressures. savings headwinds cost to our as are But to on yes, over the only the want thing add the XX last No, cost real initiatives nice I to and cost relates pressures. global a we procurement cost operations of some, of identify months offset side, to first, it recognize number some seeing Yes. They've is, done job I'd a

team the seeing. I impact want been what to And of minimize that's the hard so recognize you're working to

price to fortunate As limited our opportunity where relates this. it pricing, we headwinds on mentioned, that portfolio. given the can the the some materials I sides offset some contracts seeing to some we've some in again, both we're certain coming in mitigate we're of the that increase increases got the effect short-term of for have into anticipate around increases cases, select -- Carrie And But price sites. we'll longer-term also would there's

Ryan Zimmerman

to state get to kind us it. covered a need you're strategy PriMatrix how a follow-up. the as think where then, the of and to you I that Got -- and And Can of mean, give Glenn, following study? and reimbursement for you, given terms you kind state lives on of just study? at where about with PriMatrix in of your

Glenn Coleman

Yes.

we in prior reimbursement keep mind, So good the study. pretty had to

of of think covered that commercial really lot but I payers. we So million XXX have lives, lives with didn't the as a covered over

care is increase and us over of for this And enables go in in the and this amount the months are us DFU improvement data showing commercial with next what standard XX XX so does to reimbursement. to significant to the the differentiated X and that clinically of statistically now closure significant versus weeks payers results

rough amount covered it think what magnitude. as from So you of could of lives of a the as said doubling I order just

that's up it's And that's so very opportunities to and sales outpatient. And for PriMatrix. more a obviously growth more and inpatient going well received, both product been open revenue been

going again, us real get move for payers nice we of covered and opportunity this all so getting commercial doubling these lives should to amount as And reimbursement. be the of we But forward. think a it as through once

Ryan Zimmerman

just your doubling on what mean the And mind? in put a to that last, over I as point period finer Glenn.

Glenn Coleman

so going call So number XXX million. covered over base million, over it, XXX is lives months. XX Over, of the today

to from have -- in XX we're whatever place. have going fair to perspective in I think it's we'll months, a reimbursement say

Operator

Our JPMorgan. Robbie with comes next from question Marcus

Robbie Marcus

quarter particularly here. we've fourth on dig bit, the first, Maybe it what's guidance but And capturing for The at I beat just now into beat, for quarter that it a end. relates Two guidance a nice was Carrie, we're also the but and the street third as looking quarter further, me. touched fourth but at very high captures raise a high implied the for wanted little to and it to third the street, end. implied at is what's

a impact is I it, sense And thoughts is better was So going conservatism of to get on just what's into decision into the FX else versus how How much lower exactly played much of trying or ACell. second from lowered anything if here? half. the

Carrie Anderson

not did there. factor any FX change No, thinking in Yes. into our

math in we're million to the million. But second is I to so million, million -- half would any base $XX raise organic embedded about that it that, again, I'll $XX $XX business $XX FX down to the within business, which that assuming ACell year. that implies not look million $XX And up million is Within go base raise. said tailwinds the at significant the back equation. I of $XX taking

slower So We've we've derisked a had ACell. start.

characterize indirect I I really not to business think about really talked I derisked sure I'm the we the and I'd exit have Glenn is move that. second in would trends. in seeing say some that We Still we've the some as opportunity that into see it base we're say capital it's that year growth think and balanced. what the nice XXXX. conservative. half. would as and Pete have further

the that $XXX million look question on the some fourth to would second either But answered some the in third as a as and XXXX. million just the to quarter Kaila's the it third X% business I seasonality capture normal I in So quarter. the nice well does in at as base XXXX QX compared maybe growth XXXX or quarter more the growth is some demand in $XXX from pent-up quarter well organic to timing.

performance the pleased the very we're overall, business think I with of thus far.

Robbie Marcus

Sorry, maybe clear. been more line. a little have on should focused bottom I meant I the

Carrie Anderson

Yes.

Robbie, see line, bottom to that quarter of is the I additional -- fourth normalization the consider quarter. say we'll some the third in probably On sorry, thing, the OpEx would in

second the around some launches. CereLink. half, have on looking obviously I opportunities about We about some side. need the we investments think got at new -- Glenn to talked as do product we've We're breast

continue And so we want to invest in Aurora. to

growth to studies. clinical invest product with there that we So opportunities lots continue in of to new want

that quarter investments the in say would some want the we to does do I So third third additional comprehend quarter.

I that of I think plenty priority to but is for perspective, than in room it a terms would Robbie, higher got expect be I of half first say a modestly investment. half. second those -- we've gross make us From investments, will margin

to the I gross half. first and labor supply the in I half pressure lead into times half. second even will on long persist some think manufacturing tight of continue the margin that But compared do pressures the with we'll modest some that second the into around said, the think to improvements see some

Peter Arduini

the here view talked ramp great second spend a the position Glenn all from those what this all that to of about PMA track. half, which in of earlier, growth file big their we being significant would news opportunity means opportunities is I Aurora. the the in that for will the add discussion it is Investor begin breakthrough mentioned on kind because to at breast the profile, Robbie, X of a for and And we that on have everything just have we as are technology Day,

can this a really used if and a actually think invasively be And regularly platform remove brain you that about first minimally product to so tumor. Aurora, again, is the

added tweaks can will so the work, and we doing going institutes heard with that. other that, on player have out some that neuro in differentiated CUSA that names our on clinicians customize that, like instruments, the want we including generate and that's work the the no so this all how you've which to we marketplace in something And things, custom other case big of really create set. in And work

within to And so all of those. lot of for optimize work it here a that starts QX

Robbie Marcus

X get at guided do we Analyst Day in that really maybe How On than R&D, sales focused one. to came And in or be X% quarter. at the lower few up expected It last the projects just Great. about to on? years. to that we up? you of next when going start second least And think tick expect we to the what see that is in

Carrie Anderson

year Yes. Robbie, I to investments I of think half we, up that the advance to that some again, second the expect it's move really consistent see with that Pete's start those new in would of R&D comments opportunities. continue product you'll as

a -- in be would that that piece the be expectation be will side. with definitely will of -- spend some that So my increase consistent that is of R&D the

Operator

question next Sandler. comes Piper O'Brien Matthew with from Our

Matthew O'Brien

dead with here out sorry to But And kind question. guys of extremities for a And ACell. I'm I'll swapped of you just heart X kind ACell. on stick beat

And so on in to down that as pandemic access far But about 'XX, wanted I there's accounts back I did a million lot and get it. a in now. That's to why now we're 'XX. what as of and the a ask That XX% $XXX business attention was more. bit

-- faster just to give for sales this had So Is it as Are it Can accretion much X seem focused just you guys there. attrition, us account you on expected? what on commentary rep moving based those more I attrition metrics? about you side? versus guess anything investors is Things they're any I better said. asset really on the on what be

So cutting get about business? a sales in kind bit faster maybe can you're beyond? the Is that's do million in and you when $XXX top affecting to bit? that little little back or And of then that you line XXXX a think

Glenn Coleman

question. for Yes, thanks Matt, the

We couple year. of on Just ACell. had mind. month to about to $XXX groundwork keep million A point less in the X things the set reference this of of for some sales

obviously, you should And look it. fees that they at when accounting So then treating were GPO are Integra how versus reduction, that you for XX% in. factor certain within there's that different

force. the think around the factors. business X We've But the relative listen, to So are I those actions itself, as necessary taken sales has the expected. been attrition synergizing

half For we'll this And in start we in the the in year, to once these face-to-face us, better see the around access meetings it's pickup getting of access. business. think just second I really start

come. it we close get very we're see commit the to I'm X% overall think other XXXX. we in line to into million, have sequential improvement I that. don't will back business, we and long to range. the get to be ready than in growing expect talk which something anything So a as business, confident to term, that's $XXX in business with expect to this Tissue is we'll When in the to about X% to Tech

Matthew O'Brien

you're on sales if force clear, little but bit account there, you as know think an a as TEI or analog seeing from side Glenn. you more an here. side just how elevated can competition I I But pretty well as the to be is that on side not anything perspective attrition integration did don't the Okay, went well. use far getting

Glenn Coleman

Yes. just attrition. normal No,

we've asset. we've that the So months nothing that the abnormal in X own seen first

Carrie Anderson

I QX, ACell we would we But see run you I comparable had the to daily business. Yes, there expected deterioration QX you the ramp at kind quarter. didn't and see look we own further fast because to say quarter. didn't just deterioration quarter have look us that And from in growth rate, any didn't as full any a think I the was limited that as didn't the second mean, we just It's don't expected. of of at as on periods just to access. We just we they're not allow the it first as for kind more But to.

Operator

Our Wuensch comes next question Joanne with Citi. from

Joanne Wuensch

the question -- but secondary So person then circling was feel been how going is my same next the very think progress you've question. tenure? already all right your given And phase, of kind But I we're like I'm over CEO made what again, many for have briefly, apologize, do the to you answered. much and

the of it that lower products? total raise that momentum it raise lower you what Is ACell, of revenue, in confidence the be that's helpful. the revenue? like new sort would in recovery? giving Any it you Is If is

Carrie Anderson

to of But Joanne, on question, part. Pete in underlying the take defer I business, very Yes. I'll I'll of second broad-based. think the it's your terms first and part the

procedure-based IDRT products, that the organic the compared quarter low as at business The growth with very the business disposable, the some other has recovery, markets pieces yet even the grow isn't a of the remarks and seeing pieces exception our instruments, indirect growth. capital probably think prepared XXXX here, our in business, nicely. recovered that that's nice products rebound skin really would mentioned second parts consumable SurgiMend as to X% very, in are full when of all I of And business single the my I most of mentioned, Glenn of neurosurgery, in digits.

performance So very nice there.

hold as so back we that go about made about of products the half, launched of about comments of into of seeing Glenn comes all taking see to We lot XXXX. products that you're XXXX. them. you're I those really what going And really is second we think in -- in. had the that a the X recovery to COVID those And launched middle we back of that on some middle that that's as And in interrupted products nice the opportunity seeing ramp

growth as well. first kept well. of procedures else certainly And recovery in the second as some helping handcuffed us half NPIs half it's combination combination some international the to of and the that that demand of and anything So add? pent-up deferred some want in you the Glenn,

Glenn Coleman

I'd funnels highlight capital we and themselves confident now. feel thing but strong the more are half second other lagged, the only right year The the really as actual in has of Yes. why capital is

lot things the to and through a relative trialing selling got advancing we've of cycles. So on going capital our

up, strongest when I of But in a going very windfall in the first activity, we're see it's the lagged at the terms the half look in half really we open see seen that's And the at nice And capital start so look just progress I've I on time. I of year. second the front of in the a that long year. the the again, to to believe once funnel,

also why that's So we're confident.

Peter Arduini

shape. is Joanne, just would look, the I on here good the that company is in key the very say point,

everything and product the have. you from close to for the that speed followed access it, pipeline our systems that can to we think data we I

vision in here have be obviously And what's take for a and better, come find the about future so how but growth. that finding able to faster to someone can and make it

the is be come of ultimately the we're be leader. need obviously amount the right of fixed in internally that leader things reason, of I to opportunities is versus I would Board's I think for. term It's scale The decision And company, in And that. them the of we and the what a find that to inflection I those think can out come and think and -- on balance before Day and the company focus grow lot the hope I the so finding to this we at the think X to think and the interest about a excitement right grow. there's year take I in to do we'll tilted here and things to able over with Investor kind more faster. and that use focus point about for has bucket on tools talked to clearly have the

Operator

next Singh question with Wells Our Shagun Fargo. from comes

Shagun Chadha

I'm if pace energy expectations second million. indicated see base business it, in missed within growth you How of you us about are And the double-digit $XX that your the $XX And up what was from respect rate, benefit So sorry relative backlog you the did million, for QX? much advanced half? that had I capital, with the U.S. to to can and in QX? decline posted you give then

Carrie Anderson

take that. Yes. I'll Shagun,

$XX In the million it? question of what was million, the $XX -- terms to was regarding

Glenn Coleman

backlog. The

Carrie Anderson

really as back there or guidance second and surgical to our I the The terms quantify second to came quarter in from beat saw a But pent-up quarter. be about certainly, our of in deferrals high that nicely think demand. of the the did Yes. of the of it upside Instruments the able of It's $XX came pent-up much million business a our how we in think of recovery was some end the quarter. first was side we The down demand, reconstruction a backlog, nice the year-over-year, of that portion really -- in -- piece backlog. of range hard that.

it certainly, in there of second the that opportunity just third overall, in pipeline But was contributor, normalization tended seeing full the we as of the goes capital really nice a which the a next demand to think to revenue quarter we try guidance U.S. the single capital there. half first as benefit really your still to to about that seeing elements our quarter, expect think digits. the quarter. high more in single the sequentially, from digits -- down And is in was normalize was And of Glenn QX -- So QX in in pent-up was second down It's still quarter, be up seeing which most capital, the question, the parts and we in be second Shagun, quarter. about business. U.S. But mentioned, we're to where recovery in will some third

pipelines will into in into we CereLink full some in going full of seeing us think so And coupled following launch release clinical and half, those QX. nicely half, capital gives market the the capital and again, comfort nice the that as about, second with QX then second rebound

Operator

Bedford Raymond Our final James. comes with question Jayson from

Jayson Bedford

a questions think, couple pretty that just -- answers. just I'll Pete. Congrats, quick I of require,

restricted this Is impacting sales negatively access. base dynamic technology access business? in restricted tissue your mentioned You

Glenn Coleman

because existing No, have again, relationships. the they

with easier to sale portfolio. do much it's the So our existing

business. around seen ACell haven't from products base our relationships we really transition that of obviously, and the new It's the So impact portfolio. the

So answer the no. is

Jayson Bedford

guidance in growth also, assumption for Okay. And the the what of what's for the And year? implied in 'XX? organic level then then discontinued is FX revenue the

Carrie Anderson

Yes.

that. For to second the in a in benefit FX, in saw or the year. $XX We not start FX FX let of the me $XX million with half assuming of a million tailwind headwind first half. probably of We're

on So depending not we're FX really where on rates counting be benefit to a go, in second the half.

for products, the half as do So about some first $XX of $XX again, continue been to was time for last a the year. bit million higher, discontinued And million the there. little discontinued buys product then people FX revenue has to

of the and a million discontinued about $XX to million revenue $XX year-over-year to About million of in in million and probably change XXXX. $XX So XXXX $XX discontinued revenue. million products $XX about type in

is year-over-year $XX to that essentially, million about So million. delta probably $XX

Operator

it for back to I'd Peter question-and-answer to our closing concludes like This remarks. Arduini now session. turn

Peter Arduini

lineup accelerate just saying growth will by Thanks, an can thanks, had margins, the markets We're clearly the faster point of really pipeline. made We're and your Hopefully, changes questions. we've aligned faster market growth with to been close at the Stephanie, you there's at drop and discussions which Integra. now and a everyone, only more through. with never scale have we've but we growth that leadership. inflection to time exciting and Look, a do see that products on for not higher I'll

for But you thank an interest in our quarter. future providing So here and the Thank to continued progress the of concludes at on in Integra. you. forward many you your with and Look in next enjoy near our your summer, the speaking please call. meantime, update that

Operator

gentlemen. today's Thank you, ladies presentation. This concludes and

You may now disconnect.

Integra LifeSciences (IART) 28 Jul 212021 Q2 Earnings call transcript