Integra LifeSciences Holdings Corporation (NASDAQ:IART) Q1 2018 Earnings Conference Call - Final Transcript

So we're going to be ramping up a lot of our spending around marketing to get these new products launched, but keep in mind, it's really a 2019 bump in our revenues. And so I would be stay a little bit tempered on the expectations around new product contributions, especially those coming out of Codman portfolio late this year.

Great. And then I guess as a follow-up, you mentioned China and some approvals coming in Japan. Can you just remind us sort of what your size is there today and how many of your products are actually being sold into those regions and like how many you plan to get out to those areas, let's say, in the next couple of years?

Glenn, why don't you cover your international area.

Sure. I mean when we look at China and Japan, you can think of those as being roughly 3% to 4% of our total consolidated revenues, roughly to give you a sizing of those two. As Pete mentioned in his prepared remarks, we just got the approval for CUSA Clarity in Japan. So that's quite exciting. We're expecting DuraGen later this year. And we're planning on adding more resources in China to further expand our footprint there.

So all in all, those are the sizing of those markets. We expect them to be pretty fast-growing markets for us as we launch the new products, when I say new products, existing flagship products within our portfolio that are being launched in new markets like Japan. And so when we look at the growth rate in these markets, we think it's going to be a nice added benefit to our overall organic growth across the company

Yeah. You can say it's evident, but just to put a finer point on it, our initial plans to introduce something like CUSA Clarity in Japan through an indirect channel might have generated something in the lower single digits in millions of dollars of revenue. And with a direct channel, that automatically is doubled with its potential to go direct. And I think we're just starting to learn after really four to five months being together what the scale change is. Again, we had about seven direct people, and now we have a team of 75 to 80. China, we had about 25 and now, we're up into the 100 range.

So we're really finding even I'd say, organically, we're finding new ways to open up markets that we wouldn't have really kind of dreamed of before the deal, so quite optimistic. And again, I think culturally, the Codman team and the Integra team have been a really good fit around the world, which has reduced the amount of turnover that we would typically expect on a deal like this.

Thank you.

Sure.

Thank you. We can now take our next question from Jon Demchick from Morgan Stanley. Please go ahead, sir.

Good morning. Thanks.

Good Morning, Jon.

Good morning. Thanks for taking the questions. Wanted