Greatbatch and Lake Region Medical merged nearly two years ago to become Integer Holdings Co., a giant medical device contract manufacturer that could theoretically do almost anything for an OEM. But can this colossus of a company execute on its expanded capabilities?When Greatbatch and Lake Region Medical merged in 2015, company officials decided they would rename the combined $1.4-billion-a-year company as Integer, the Latin for “whole,” to reflect the comprehensive products and services their customers would enjoy.
With much of its integration now complete, the Frisco, Texas–based company has turned a corner and appears to be set to spread the word and truly capitalize on its expanded capabilities.
Integer’s manufacturing expertise is vast, including micro machining, laser processing, injection molding, metal stamping, small diameter and multi-lumen plastic tubing, metal stamping and grinding, precious metal manufacturing, tube fabrication, wire coiling and more. Technical capabilities include metallurgy, catheters, guidewires, implantable pulse generators, batteries, software, battery packs, wireless charging, leads and robotics.
“Sheer size isn’t what makes a company. What we think we have is we have unrivaled capability. We can do something for everybody, because we can play in the full continuum,” said CEO Joe Dziedzic, a former Integer board member who took over in March after Thomas Hook stepped down from the top spot. (Integer’s board removed the “interim” from his title in July.)
Revenue – down 4% on a comparable results basis in 2016 – was up 4% year-over-year during the first six months of 2017. As of today, Integer’s stock was up about 55% for the year, trading at more than $45 per share.
“We’re wrapping up the formal integration process of combining the companies. We’re moving now towards business optimization,” Dziedzic said. “The next couple of years our focus is on optimizing what we have, taking full advantage of the technology and the abilities to vertically integrate.”
It’s crunch time for the big kid on the block in medical device outsourcing.
“If they execute, they’ll be more successful than they have been in the past. This management team might be putting forth a good effort,” noted Mark Bonifacio, a medical device manufacturing consultant based in the Boston area.
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