Our philanthropic efforts continued to be strong. We donated products worth over $3.5 million to organizations that support medical missions, and the Integra Foundation made almost 100 grants toward research and education.
Our Strategy in 2013 and Beyond
Integra aspires to become a multi-billion dollar global medical technology company whose products enhance millions of lives. To advance that vision, we developed a three-pronged strategy to execute more effectively through improved planning and communication in our business, optimize the company so that our infrastructure and operations are cost-effective and able to support a larger business, and accelerate growth in both revenues and profit margins through new product launches, expansion of sales channels and strategic acquisitions.
We continue to invest in product development, with a focus on regenerative medicine and orthopedics, and expect to launch as many as 25 new products in 2013. Among them is a modular shoulder system with a reverse option that will enable us to build a more comprehensive distributor network for our shoulder and elbow product lines. We expect our shoulder offering to be differentiated, and by pairing it with our regenerative medicine portfolio, we believe we can become a significant player in the $650 million shoulder market.
We are also funding clinical evidence to enhance product launches and obtain favorable coverage decisions by insurance carriers. We expect to complete the clinical trial to support the effectiveness of our dermal regenerative products in diabetic foot ulcers by the end of 2013. If the trial and regulatory submissions are successful, we plan to launch the product for this indication in the United States, with reimbursement, in 2015. We believe that clinical, regulatory and reimbursement success would dramatically increase the opportunity for our dermal regenerative medicine products.
We are very excited about the opportunities to accelerate growth by increasing our international presence. Our International team is building on its success in China, registering and launching several products in new markets this year. We are also optimistic about the growth of our regenerative products in both Brazil and Europe.
Integra has made great strides towards maximizing our infrastructure through streamlining manufacturing and distribution, centralizing strategic sourcing and procurement, and optimizing inventory planning. We are well underway toward implementing a common ERP system, and in 2012, announced our commitment to implementing a common quality system. We expect these investments to make us a more efficient company, with improvements in both earnings and cash flow.
Investing in our People
Ultimately, our colleagues are our most important partners. While it is important to focus on our infrastructure and products, it is also vital to invest in our colleagues, and we have implemented new programs that will enhance execution skills and help ensure that we effectively tackle the critical issues that we face. We are building a strong bench of leaders and a return-focused culture at every level of the company.
Commitment to Quality
Over the past year, we have made substantial commitments to our Quality and Global Operations organizations. We hired new leaders with solid industry experience, spent significant sums on enhanced quality for our plants and remediation of processes and procedures, and initiated plans to implement a global quality system. We take our commitment to quality seriously, and we plan to continue to build and enhance our quality team and quality systems in the coming years. We have some significant work to do to clear outstanding FDA warning letters, but we are confident that we will emerge as a better company as a result.
Your Board of Directors
Integra’s Leadership Team is enriched by the breadth and depth of experience on our Board of Directors. We are pleased to welcome Mr. Lloyd Howell as a new director. Mr. Howell, an Executive Vice President at Booz Allen Hamilton, brings unique, valuable insights and experiences to Integra’s Board that will complement the capabilities of our current Board members.
We are also grateful to Ms. Anne VanLent for her eight years of service on our Board. Her guidance and advice has been well-regarded, and we are very thankful for her time and energy over the years.
This is an exciting, though challenging, time to be a part of the healthcare industry. Integra has the people, products and opportunity to become the industry leader it aspires to be, and we have a clear strategy with underlying plans to realize our vision and remain a high-quality investment for our stockholders.
I’d like to thank the entire Integra team, as well as our stockholders. I’m very proud to be part of an organization that helps millions of patients worldwide. With our strong foundation and committed leadership, there are huge opportunities ahead, and I look forward to the great things we will accomplish together on this journey.
1For a reconciliation of GAAP Net Income to adjusted earnings per share, please see our Current Report on Form 8-K filed February 21, 2013.
2For a reconciliation of GAAP Net Income to Adjusted EBITDA, please see our Current Report on Form 8-K filed February 21, 2013.