Safe Harbor Statement

Transcription

1 May 2004 A leader in the research, manufacturing and marketing of medical devices used in neuro-trauma and neurosurgery, plastic and reconstructive surgery and general surgery

2 Safe Harbor Statement Certain statements made in this presentation are forward-looking within the meaning of the Private Securities Litigation Reform Act of Among others, statements concerning management s expectations of future financial results, potential business acquisitions, government agency approvals, additional indications and therapeutic applications for medical products, biologics, and medical devices, as well as their outcomes, clinical efficacy and potential markets are forward looking. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted results. For a discussion of such risks and uncertainties, please refer to the information set forth under Factors That May Affect Our Future Performance included in Integra s Annual Report on Form 10-K for the year ended December 31, 2003 and information contained in subsequent filings with the Securities and Exchange Commission. These forward looking statements are made based upon our current expectations and we undertake no duty to update information provided in this presentation. Nasdaq: IART

3 Vision Statement Integra is a market leading, innovative medical device company focused on helping the medical professional enhance the standard of care.

4 Mission Statement Integra provides customers with clinically relevant, innovative and cost-effective products that improve the quality of life. Our products are principally used in neurotrauma and neurosurgery, plastic and reconstructive surgery and general surgery. Integra is a leader in applying the principles of biotechnology to medical devices.

5 Integra Overview Integra develops, manufactures and markets medical devices, instruments, implants, and biomaterials; Approximately 1,100 employees; Headquarters in Plainsboro, NJ; Manufacturing, distribution and research facilities located throughout the world; Products sold in more than 80 countries.

6 Financial Goals and Objectives Top line organic growth of 18% Gross margins of 65%-70% (currently at 61%) Operating margin of 30% (currently at 22%) EPS growth of 25%-35%

7 Strategic Structure Product Groups Monitoring OR Products Instruments Private Label Integra NeuroSciences Integra Plastic & Reconstructive JARIT Instruments Distribution Channels JNJ Medtronic Zimmer

8 Revenue Summary 2003 $185.6 million Q $52.4 million 12% 10% 15 20% growth 24% 11% 2% 15 20% growth 21% 10 15% growth > 25% growth 31% 10 15% growth > 25% growth 25% 29% 35% Neuromonitoring product revenue Operating room product revenue Instruments product revenue Private label product revenue Other revenue

9 Products by Channel Monitoring Operating Room Instruments Integra NeuroSciences Camino/Ventrix LICOX EVD DuraGen DuraGen Plus EnDura Selector Ruggles NeuroView Cranial Access NeuraGen MAYFIELD Novus CSF Shunts BUDDE Epilepsy Electrodes Carotids Elektrotom Plastic and Reconstructive NeuraGen Integra DRT Integra BMWD Padgett Dermatomes Meshers UltraSoft JARIT General Surgery JARIT Redmond/R&B

10 Broad-based Competitor In Neurosurgery One-stop shop for neuro-trauma and critical care and neurosurgical procedures Primary sales call point: neurosurgeon / neuro-nurse Direct sales team in U.S. and Europe Worldwide distributor network Reputation for innovative products Competition: Medtronic Neurotechnologies, Codman (Johnson & Johnson), Tyco, Aesculap Growth potential in existing lines plus new products

11 Monitoring Platform Camino and Ventrix Monitoring LICOX Brain Tissue Oxygen Monitoring Novus CBF Monitoring CNS 2004 Integra EVD Systems Cranial Access Integra Epilepsy Electrodes Integra NeuroSupplies

12 Camino and Ventrix Monitoring Camino Monitors MPM/SPM Intracranial and Ventricular Bolted Monitoring Measurement of ICP, CPP, and ICT Ventrix Monitoring Ventricular Tunneling Pressure Monitoring Measurement of ICP

13 LICOX Technology Direct measurement of the partial pressure of oxygen in brain tissue Compact, Smart card calibration Clinically relevant measurement ranges O 2 and temperature User friendly

14 Operating Room Platform DuraGen, DuraGen Plus EnDura No-React NeuraGen Integra Dermal Regeneration Template CSF Management Systems Lumbar Drainage Kits Hemodynamic Shunts Cranial Fixation and Closure Devices

15 Tissue Engineering Technology Base Commercially attractive Acellular devices Operate at the device/drug interface - but still devices High volume, low cost manufacturing technologies Approved products demonstrating these principles DuraGen and DuraGen Plus Dural Graft Matrix NeuraGen TM Nerve Guide Integra Dermal Regeneration Template Integra TM Bilayer Matrix Wound Dressing BioMend Absorbable Collagen Membrane Absorbable Collagen Sponge Significant patent portfolio

16 Dural Graft Market Neurosurgeons each perform approximately 25 procedures per year that require a dural graft Current market: $110 million for dural substitute (70% cranial / 30% spinal) Market Drivers DuraGen has created a new market for sutureless closure Continue to capture share from Gore and Synovis Continue to capture autologous share DuraGen has created the secondary graft market

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19 NeuraGen PNG An absorbable implant for the repair of severed peripheral nerves Estimated $40 million market worldwide

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21 1. 2. Cross-section view of Integra Dermal Regeneration Template Dermal regeneration underway Blood vessels fully formed Approximately 2 weeks after application Healthy regenerated skin

22 Ideal for trauma wounds Ideal for chronic wounds Provides immediate wound coverage Highly conformable for various anatomical sites Room temperature storage Recent pass-through reimbursement

23 Integra Instruments Ruggles Instruments MAYFIELD, BUDDE Neuroview Endoscopy Padgett Instruments Dermatomes and Meshers JARIT Endoscopy, Bariatric, General Surgery, Ortho and ENT Instruments

24 Selector Selector/ Elektrotom Ultrasonic aspirator that selectively dissects and fragments soft tissue leaving essential structures such as nerves and blood vessels intact Range of ergonomic handpieces Choice of frequency Elektrotom Electrosurgical unit that cuts and coagulates selected tissue, automatically regulating and adapting power required for the target tissue

25 Sales Organization US Sales Organization NeuroSciences 80 sales reps 10 Clinical Educators Plastic & Reconstructive 12 sales reps 3 Clinical Educators JARIT- General Surgery 19 Regional Managers and 19 Specialty Distributors 5 Instrument Specialists International Sales Organization NeuroSciences Direct Reps in UK, France and Germany Distributors in Europe, South America, and Far East Plastic & Reconstructive Direct Reps in UK, France and Germany Distributors in Europe, South America, and Far East JARIT- General Surgery 80 distributors

26 Private Label Products Absorbable Collagen Sponges for use with BMP BioMend and BioMend Extend, Collatape Collacote Collaplug absorbable dental products Infection control products Biopatch anti-microbial wound dressing Vitacuff catheter access infection control device Spembly cryosurgery systems

27 Financial Review

28 Revenues ($ in millions) $200.0 $150.0 $100.0 $185.6 $117.8 $50.0 $93.4 Q1 04 $71.6 $42.9 $52.4 $ Growth 144% 67% 30% 26% 58% 42%

29 Growth 38% 29% 77% 88% 33% Fully Diluted Earnings Per Share $0.30 $0.25 $0.20 $0.15 $0.10 $0.18 $0.18 $0.23 $0.30 $0.24 $0.05 $0.00 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

30 Balance Sheet and Cash Flow Summaries ($ in thousands) 3/31/2004 Cash and marketable securities $ 212,081 Total assets 421,341 Debt 119,742 Total stockholders' equity 278, Q Operating cash flows $ 34,228 $ 10,850 Purchases of fixed assets (3,843) (3,025) Cash used in business acquisitions (51,305) (3,889) Financing cash flows 94,673 1,402

31 Summary Highlights Important medical therapies Multiple $1+ billion markets Strong technology and patent base Leader in neurosurgery Alliances, partnerships Strategic acquisitions to leverage the channel

32 Thank You..Questions?