Integer Holdings at Bank of America Conference: Strategic Continuity

On Wednesday, 14 May 2025, Integer Holdings (NYSE:ITGR) participated in the Bank of America 2025 Healthcare Conference, focusing on its strategic direction amid a CEO transition. The company highlighted its robust financial health and ongoing commitment to growth, despite some challenges such as tariff impacts and a planned business exit.

Key Takeaways

• Integer Holdings is transitioning leadership from Joe Dizik to Peyman Kales, with no strategic changes expected.
• The company reported 6% organic growth in Q1 2025, with a sales growth forecast of 8-10% for the year.
• Integer’s cardiovascular business reached $1 billion in sales, growing at double digits organically.
• The company plans to exit the portable medical business, offset by acquisitions.
• Tariff impacts are minimal, with most sourcing from US suppliers.

Financial Results

• Q1 organic growth was 6%, with a 3% headwind from shipping and manufacturing days.
• Cardiovascular business reported a 17% growth, 11% organically.
• Integer projects 2025 sales to rise by 8-10%, with net income up 19-26%.
• Operating income increased by 14% in Q1, double the sales growth rate.
• Gross margin improved by 140 basis points last year, with a 76 basis point improvement expected in 2025.

Operational Updates

• Integer is exiting the portable medical business, leading to a $29 million sales decline, counterbalanced by $59 million from acquisitions.
• The Emerging PMA customer group grew from $10 million in 2018 to $125 million in 2024, with a future growth forecast of 15-20%.
• The company’s global manufacturing footprint is about 50% US-based.

Future Outlook

• Integer’s strategic focus remains on growth markets like PFA and electrophysiology.
• The company is under-indexed in TAVR but strong in tricuspid and mitral areas, with RDN projected as a potential $1 billion market.
• 80% of the development pipeline targets growth markets.

Tariffs and Supply Chain

• Estimated tariff impact is $1-5 million in 2025, with customers managing product transportation.
• 70% of sales are under multi-year agreements, ensuring stability and predictability.

CEO Transition

• Joe Dizik is retiring after nine years, with Peyman Kales stepping in as CEO.
• Kales, involved in strategy since 2018, plans to continue the current strategic path.

Portfolio Management

• Integer divested its Advanced Surgical and Orthopedic business in 2018 and exited the portable medical sector in 2021.
• The focus is on high-value technologies within cardiovascular and neuromodulation markets.

For a detailed account, please refer to the full transcript below.

Full transcript - Bank of America 2025 Healthcare Conference:

Operator: Morning.

Craig Bijou, Med Tech Analyst, BVAG: Good morning, everyone. My name is Craig Bijou, one of the med tech analysts, here at BVAG, and it’s a pleasure to have, Integer Holdings. And with me, from the company is Joe Dizik, CEO, and then Peyman Kales, who’s COO and CEO elect. Then Chris

Operator: and Stuart.

Craig Bijou, Med Tech Analyst, BVAG: Yeah. Christian Stewart, IR, is in the audience here as well. So thank you guys for coming. Thanks for having us.

Operator: Been a

Joe Dizik, CEO, Integer Holdings: great day so far.

Craig Bijou, Med Tech Analyst, BVAG: I’d love to start with the announcement, Joe, CEO transition, retirement payment taking over a little bit later this year. And I just wanted to first start with your decision to step away from a joke and say a PFA company, but I know it’s much broader than that. But to be be you know, seriously, you’ve done a lot of work over the last, you know, several years kind of building, focusing on finding the right markets, the next growth markets, PFA being one of them. But, you know, there’s obviously a lot of others. And then it now kind of seems to be kind of really hitting in in your numbers in in your business and really accelerating your business.

So I guess, you know, with that in mind, just kind of wanna get your sense of or your rationale for stepping away and why now was the right time for you.

Joe Dizik, CEO, Integer Holdings: Sure. So I’ve had a little practice at this. So it starts with the business is in great shape executing and delivering on our strategic objectives we set back in 2018. I believe I have a ReadyNow CEO successor in payment, and I just completed earnings call number 62 as a public company CEO, public company CFO. Those are the three macro reasons.

But to elaborate a little bit, back in 2018 when we established the strategy that we continue to evolve and iterate and execute on, we had three financial objectives growing faster than the market, expanding margins and maintaining a debt leverage that we think most investors can be comfortable with and it’s prudent for our size and the industry that we’re in. I believe we’re hitting on all those cylinders. We just had a great start to the year. I think we’ve got strong guidance for 2025 sales, reported sales up 8% to 10%, organic 6% to 8%. Net income up 19% to 26%, earnings per share 16% to 23% guidance for the year.

So I think the business is in great shape and I feel like I can reflect I’m now entering year nine as CEO that we’re executing on our strategy that we set out for ourselves. We knew it would take a little while to get the organic sales growth. It’s happening. You see that particularly the last three years. So I feel like the business is executing.

Peyman joined the company in 2018. It was the second direct report that I hired one month after I hired the HR leader. He’s been running the largest part of our business. Three of our four targeted growth markets are in the business that he’s running. All of our acquisitions have been in the business that Payment’s been running.

I lead in a very collaborative manner. The leadership team has been part of developing and executing the strategy the entire time I’ve been with the company. Think we have a very strong leadership team. I’m confident Payment is ready now to step in running the company. The thing he hasn’t done as much of is talk to investors.

I’ve tried to shield him and the rest of the team from that activity so they can focus on making the business better every day. He now gets to play that role for the rest of the leadership team. I’ve been married thirty three years, been with my wife forty years. We’ve moved eight times in our career. And so I’m looking forward to going and spending some time with her and family and friends and moving at the same pace, pursuing things that are non work related of personal interests.

Craig Bijou, Med Tech Analyst, BVAG: Great. No. I appreciate that. And then maybe just a follow-up on that. And I don’t know if it’s payment.

I don’t know if it’s Joe. But, you know, how do you guys think about what changes with payment taking over, if anything? And I don’t know if there will be any changes or big changes since you have been an integral part of what Integer has done over the last seven years, But maybe just kind of touch on that and, you know, for invest for an investor perspective and understanding kinda if anything could change. Yeah. Sure.

So let

Operator: me take a shot at that. So so as Joe talked by the way, it’s great. I look forward to interacting with all of you folks as we go forward. It’s something that I haven’t done, as Joe said, and I’m looking forward to it. So good to be here.

So look, I’ll start with maybe a continuation of what Joe said I was there in the early days working with Joe and the rest of the leadership team to develop the strategy that we have. We a structure in place in 2018, what we call the growth teams that we’ve talked about, folks that really focus on the growth markets that we have. I job is every day to come in and find winning strategies and execution plans so that we can win. You talked about PFA, I say electrophysiology is, you know, one of those markets. PFA is in EP.

We’ve always had a strong presence in EP just as part of our strategy. So the strategy is working. We’ve been generating a great pipeline of opportunities, more complex and the high value products that we’ve talked about. We’ve talked about the fact that our pipeline of opportunities has grown at 270%. And we’ve talked about the fact that within the funnel of opportunities that we have, 80% of it is focused on the growth markets.

The strategy is working and I very much intend to continue doing more of that. Obviously, as we have done in the past seven, eight years, we’ve changed our two week strategy depending on market conditions, on longer term opportunities, I plan very much to do the same thing. So as it relates to running the company and delivering on the commitments that we have, which is growing at a faster pace on market, growing profit at even faster than that, you know, two x we’ve said and staying within a reasonable two and a half to two to three and a half leverage. I very much continue to do what we will want to continue to do that because that that is what we believe will deliver a premium valuation. As to what might be different, I don’t know.

I think I like coffee a little bit more than Joe. So Joe can decide, look, obviously, we’re different people, I think our strategy is strong.

Craig Bijou, Med Tech Analyst, BVAG: Got it. Very helpful, Pin. We’ll spend a little bit on q one, just results you just reported a couple weeks ago. And not not too much time, but, you know, maybe just talk about you put up 6% organic growth that included roughly 3% of a headwind from shipping days or manufacturing days. How you guys talk about it.

Maybe just talk about kind of what you saw in the quarter. You know, was that above expectations and what was really driving

Joe Dizik, CEO, Integer Holdings: Sure. So it was at the high end of the range we had kind of guided to for sales. Cardiovascular, the business payments been running grew 17% reported 11% organic. Cardiac rhythm management neuromodulation grew 2%, which is in that low to mid single digit, especially when consider the sales headwind. So or the number of days in the quarter headwind.

So it really was very much within the range of what we expected, which is how we think about the full year with 8% to 10% reported growth. We’re seeing the growth in the end markets that we’ve targeted, the new product launches that are that have been driving the growth, continue to drive the growth and have confidence as we look forward to the rest of the year. Second quarter, we’re expecting high single digit reported growth in 2Q.

Craig Bijou, Med Tech Analyst, BVAG: Got it. Reiterated guidance despite a strong Q1. I know conservatism is a little bit of your style. So I did want to talk about maybe just that and kind of thinking about how to think about the cadence. You talked about Q2.

You know, the comps go a little kind of all over the place, you know, for on a quarterly basis. So maybe just help frame kind of what investors should be thinking about from a growth expectation throughout the year.

Operator: Sure. Sure.

Joe Dizik, CEO, Integer Holdings: Yeah. So thinking about quarter splits, know, start when we think about quarter splits, we start by looking at last year and look at what were the nominal level of sales and profitability and margin rates and that when we think about comps, we think about, well, how did last year compare to the other quarters? And so the fourth quarter, had a strong quarter, 11% organic growth in the fourth quarter driven by a number of new product launches. We talked we set expectations of that on the third quarter earnings call, and we actually last year landed, I wish we were this good, but we landed at exactly the midpoint sales dollar of our original guidance at the beginning of the year if adjust for the divestiture that we did. I wish we were that good and could be that good, But the point is we had good visibility to the year.

So we look at nominal levels last year compared to this year. So last year, the fourth quarter was the highest nominal level of sales of the year. So that’s something to consider when you’re thinking order splits. The headwind for the fewer days in the first quarter that gets partially offset in the third quarter. So second and fourth quarter don’t have that phenomenon.

Last year was a leap year. So that’s the one day that doesn’t fully recover. But for the year it ends up being naggles and bone yet you don’t notice it. The other thing I would highlight is we said in the first half, the portable medical business that we’re exiting, we said there’s $29,000,000 of sales decline year over year from that exit. That’s offset by the $59,000,000 of sales from the acquisitions.

We said two thirds of that happens in the first half. And so of the 29,000,020 ish of that is first and second quarter. So that will lower the reported growth rates a little bit. And so you’d see less of that pressure in the second half of the year. And so those are kind of maybe the big picture things to think about when you’re thinking about quarterly cadence.

Craig Bijou, Med Tech Analyst, BVAG: Got it. That’s helpful. And then maybe just talking about some of the P and L results in Q1. I think operating income grew 14%, which is about two times sales growth. You have the target of two times overall.

I think your guidance is a little bit below that. Again, you know, we’ve seen this before, but, you know, you build in some conservatism. But maybe just talk about kind of what’s driving some

Joe Dizik, CEO, Integer Holdings: of that operating income leverage that you have. Sure. Know, last year we grew operating margin rate by 140 bps. 40 bps was from gross margin. This year the midpoint of our guidance is 76 bps of margin rate improvement.

We’ve been we tried to be clear that every year we do expect some of improvement to come from gross margin and some to come from leverage on SG and A and R and D. And so when you think about full year 2025, we don’t expect to get as much leverage on SG and A in 2025 because we’ve got acquisitions that bring SG and A. And the one thing we do with acquisitions is we work to get to know the business. We don’t go in and start cutting cost and structure of the business until we’ve gotten to know the business to understand it better. And then we’re very thoughtful with the management team that has become part of Integer.

Operationally, we get into the plant and start driving efficiencies right away. But think SG and A and R and D, really don’t touch those initially. So that’s why we’re not going to get much leverage on SG and A costs this year. R and D expense, we would expect we do expect to get operating leverage in 2025. And that’s because when you think about R and D for Integer, think about it very differently than our customers.

When our customers spend R and D, it’s R and D expense. When we do R and D development, we’re getting paid to do that work. And so if we get paid more and more by our customers, we actually have less expense. So we can do more R and D work for our customers and have less expense. And so we do expect to get leverage in R and D, the R and D expense line item, and then gross margin expansion.

So that’s how we think about it on an ongoing basis. Maybe specific to first quarter to your question about operating profit at 14% growth, reported sales at 7%, so growing at 2x. Fourth quarter, we had some gross margin pressure, which we had talked about, which didn’t surprise us because of the new product launches. We were able to get some of that back in the first quarter as some of those products got to be a little bit more scaled and we worked through some of those inefficiencies. But what I’d highlight is we want people to think about the full year commitment we’ve made.

We know at any given quarter, the income statement geography is going to move around. As we have launches, some of them are going be launched really efficiently and some are going to be launched not as efficiently. We may launch with a line that’s underutilized that carries extra cost that’ll have some pressure on margin. In any given quarter, we would expect some of that volatility on a quarterly basis. We think the best way to think about our business is look at it on a rolling four quarter basis to see the sales trajectory takes a lot of the noise of quarterly movements out.

And and as we think about profitability and margin rates, think about our guidance for the full year, we have confidence in how we’re going to deliver on that. But there there can be quarterly variation.

Craig Bijou, Med Tech Analyst, BVAG: And then maybe just follow-up on that, just thinking beyond ’25. I know you don’t have guidance out there, but this the goal of two x operating income growth versus revenue growth. I mean, how should we think about the durability of that? And is there anything that would get you off that that goal?

Joe Dizik, CEO, Integer Holdings: Going to be here next year.

Operator: Let me take that because that’s ’20 ’20 Look, I’m not planning on changing that trajectory. This is something that we set ourselves as a goal and aspiration many years ago, Joe, when you became CEO in 2017, I would work to deliver that.

Craig Bijou, Med Tech Analyst, BVAG: Versus op margin going forward, the split, how should we think about where the expansion opportunity comes

Operator: from? Yeah. So I would rather not necessarily split the geography. I mean, what we said, look, as a business because at any quarter, there can be variability depending on what’s going on. But I mean, if you look at over time, I mean, we of course, that plan and intend to improve margin, gross profit as well.

But really, this is total profit of the company that we’re

Craig Bijou, Med Tech Analyst, BVAG: talking Okay. No, perfect. I want to spend a couple of minutes on tariffs. I know it’s not a big deal for you guys, but I have gotten the question from investors, why isn’t it a big deal? Or why is the number so low?

So maybe just explain kind of how you guys get to that one to 5,000,000 of impact that you expect in 2025?

Joe Dizik, CEO, Integer Holdings: So it starts with where we sit in the supply chain, and I think you’ll find with most manufacturing companies, the company purchasing the material usually takes responsibility to move it from the supplier’s plant to wherever they’re going to consume the material. And they do that because they want to control as many elements of the cost as they can and that gives then the buyer perfect visibility to what that cost is. So the supplier can’t try to mark it up. And usually the buyer has oftentimes more scale and maybe better rates and they also get to manage that part of it. So our customers, when they buy from us, they’re responsible for moving it from our plant to wherever they’re going to consume that in their manufacturing plant.

And so that means our sales, wherever they go, the customer’s managing that. So that insulates us. We then have the same dynamic on what we buy where we’re responsible for picking it up and managing the transportation from our suppliers to us. And the vast majority of what we buy are from US based suppliers. We have a very, very small amount of purchases from Asia broadly and and a negligible amount from China specifically, which is what enables us to get to that 1 to $5,000,000 estimate on tariffs.

Craig Bijou, Med Tech Analyst, BVAG: Got it. And ’26 is think I asked you on the call. The ’26 will be similar number. You don’t expect an increase there.

Joe Dizik, CEO, Integer Holdings: Correct. Okay.

Craig Bijou, Med Tech Analyst, BVAG: And actually, a follow-up on that is, I mean, you dealt with some of the supply chain issues over the last couple of years. What is your view on tariffs maybe impacting the overall supply chain and you’re driving another inflationary environment like we saw for in 2223?

Joe Dizik, CEO, Integer Holdings: Yeah. So it’s I’m reading what you’re reading about the industry describing the tariff impact. And you know, if you look at the medical device OEMs and you look at 70%, seventy five % gross margins, and then you say, well, what’s the variable cost? So look at the variable cost of goods sold, labor, material, and any direct cost consumed in manufacturing. That becomes a pretty small percent of sales when you think about that.

They’re probably operating at 80%, eighty five % variable margin. So their cost of goods sold that’s variable is probably that 10 to 15% of sales. So you multiply that by 10%, maybe you get 1.5%. I mean, I’m doing real high level math thinking about it. I think that’s largely what you and others that are kind of analyzing the industry are seeing, you know, pick your tariff rate.

Then the other dynamic I would highlight is our industry has a very global footprint, very similar. I mean, Integer’s footprint, manufacturing footprint is very global. About half our sites are in The US. We have operations in Ireland, particularly in Western Ireland, Galway, where there’s med tech hub, right? The entire industry is there.

You look at Mexico, Dominican Republic, Costa Rica, Southeast Asia, we’re in Malaysia. It’s a very global footprint. So even if you say, well, if all 10 or 15% of variable cost for the industry, you can’t really apply a 10% tariff to that because those products are being manufactured all over the world and they’re being distributed all over the world. And so the, you know, The US is not the only consumer of these products. And so from a tariff standpoint, it does matter if there retaliatory tariffs against The US, just to frame it, other countries applying tariffs of stuff coming from The US.

Maybe then you get closer to being able to apply kind of a macro tariff to the whole industry, cost of goods sold. But the way I think about it is if it’s 10% or 15% variable cost at the OEM level, it’s probably not a % of that that’s getting a tariff because at least at the moment, everybody hasn’t put a reciprocal tariff on The US. So No. But I think you’re probably smarter than me on that because you’re studying and talking to everybody.

Craig Bijou, Med Tech Analyst, BVAG: I don’t know about that, I don’t think anyone knows what’s going on. And then maybe one other follow-up on this. The pricing. Pricing is obviously something that’s important for you guys. So the risk that there could be a pricing impact on you guys specifically because of where you sit within the supply chain and working with customers, and I guess just, you know, is that a risk that you worry about or is it something that we shouldn’t really consider?

Joe Dizik, CEO, Integer Holdings: So to be sure I’m answering your question, you’re thinking of our customers saying, hey, Integer, we’ve got this cost that’s being imposed on us, we want you to share in that. Yeah. 70% of our sales are under some form of a multiyear agreement. During the pandemic, we were very clear with our customers. We weren’t going to break contracts.

We honored our contracts through the pandemic. We were very clear with our customers when the pandemic when the contracts are up for renewal, we’re going to look to pass through. We restructured a lot of our contracts to where we have very little price down. We have incentives for growth. That’s the structure going forward.

Believe we’re price neutral ish if you look at us on a go forward basis. And in the same way that we honored our contracts, I have confidence our customers will honor our agreements. We we we think we have strategic partnerships, and we will work very closely with our customers to help them mitigate the tariffs to the extent we can contribute, and there are ways we can help them do that. And and and we’re working on that, and we’ll collaborate with them to ensure that we’re keeping

Operator: the cost low for everybody. Let me just add to that. I think independent of tariffs, if you forget tariffs, at any given time, we’re working with our customers to take costs out of our business and their business. And we do this in a collaborative manner and we share those savings. So at any given time, we’re working on different activities because this is how we deliver value to our customers.

And then, we can also work to expand our margin. So we are, that collaborative nature allows us to kind of tell our customers what we can cannot do. And look, everybody understands that if there is cost as a result of this, we’ve talked about for us and negligible. Well, I mean, we have those very good close relationships with our customers and we can navigate Great.

Craig Bijou, Med Tech Analyst, BVAG: I want to shift over to let’s talk about the seed cardiovascular business. So it’s now a billion dollar business. It’s growing double digits organically, even more, like with all the acquisitions that you’re layering on. And one question that I have and I think investors have is maybe the growth algorithm for that business. And we’ve talked about EP and PFA and the growth that that represents, but that’s also a larger portion of your business than maybe say structural heart or RDN, which I know you added recently.

So when when investors are thinking about kind of what drives that growth to that level, where is that contribution coming from? You know, is it, you know, the the trade up from PFA versus RF in EP, and that’s a bigger business for you? Is it the getting into the structural heart areas, getting into RDN? I think that’s one question that investors have, like, really what’s driving it’s impressive growth. Right?

So and and the markets are growing. And how are you guys capitalizing? I know you’re not gonna get very specific, but how are you capitalizing on that very strong underlying growth?

Operator: Yeah. So let me take that. So I think that just as a context, we have a very broad range of capabilities and a broad range of participation in the different products and, you know, in the core markets that we participate. Why that matters is, now you give the example of PFA, obviously that’s a general grower in the market right now. So let me talk about that for a moment.

PFA is a tailwind for us because it is driving growth in the market. We participate in almost every aspect of a procedure, anything from access from the beginning to when you do a transseptal crossing, we have participation in that, you know, with different customers. When you do diagnostics, know, for example, when you do the actual ablation itself, we participate in all of that. So when that industry goes, and again, that’s all part of our strategy to make sure that we are very strong player in those core markets. So we’ve had these participations for a number of years.

So when there’s a tailwind, obviously that drives growth everywhere right across that market. That’s just one example of the market. In structural heart, mentioned that we are under indexed in TAVR, but we are more heavily indexed in tricuspid and mitral. Now that’s from a smaller base, but it’s going be driving growth and also neurovascular whatnot. RDN, we recently started talking about it is because we think that the technology is at a place that it can gain some momentum and the capabilities that are needed to bring that product into market and for us working with our customers is actually not that dissimilar from what’s in EP.

So we think we have the capabilities to be able to be a participant of that. We believe and our customers believe those who participate in it, that this could have the potential to be a 1,000,000,000 market. And we see this as a potential future growth.

Craig Bijou, Med Tech Analyst, BVAG: Any kind of directional color on those markets versus maybe some more mature markets within CMV? Like some of the growth areas versus

Operator: just to Well, so I’ll give you an answer without being specific, because I don’t know what you’re not asking. If you really think about it, if we are more heavily focused on the growth markets and if 80% of our development pipeline is in the growth markets, well by definition, obviously that’s going to change. These things take time. These things take years, right?

Because just the product life cycles and whatnot. But we believe that over time, we’re going to be more heavily indexed on this.

Craig Bijou, Med Tech Analyst, BVAG: Thank you for that, Peyman, and thank you for dealing with me. So it’s CRM and neuromod. Slower growth in CV aspects of it, especially the emerging PMA customers, obviously growing faster than that CRM business. Maybe just talk about a little bit, you know, the growth algorithm for that business. And kind of I know you it’s a low single digit, mid single digit growth, but maybe, you know, how does that change or can it change over time as that emerging business really ramps up?

Joe Dizik, CEO, Integer Holdings: So cardiac rhythm management is what it is. It’s a large, well established, lower growth, maybe more demographic kind of unit volumes growth, unit volume growth, but dual chamber leadless pacing, single dual chamber leadless pacing is where there is more growth as that market transitions. Implantable cardiac monitors is another area that’s growing faster in the cardiac with the management. You know, also the neuromodulation is where we’re going where we expect to get the growth. Know, we’ve gone from $10,000,000 of sales in the emerging PMA customer group that we’ve talked about to $125,000,000 from 2018 to 2024.

And now our guidance is 15% to 20% growth on a go forward basis. We bracketed it three to five years, but just we think about going forward growing in that case 15 to 20%, we would peg it probably twice the overall market. You know, there’s a number of different therapies there, whether it’s incontinence or epilepsy or, you know, we put sleep apnea and cochlear in there and then other emerging therapies that many of the startups and emerging companies are working on. We have a pipeline of now we have 39 different customers and products that we’re working with in that emerging customer bucket. If you go back to when we first started sharing that information, we had 27.

This was back in 2020. So in five years, we’ve gone from 27 to 39. So we’ve got a 44% growth. That’s really very much consistent with how we’ve grown our overall development sales. We’re taking a lot more shots on goal.

We now have 10 of those customers that are in the commercialization phase that’s driving that growth. So we would absolutely expect the emerging PMA customers in neuromodulation more broadly to drive the growth of cardiac rhythm management and neuromodulation in total.

Craig Bijou, Med Tech Analyst, BVAG: I want to touch on portfolio management. You guys have divested assets that you deem non core. I think the other markets business was 100, two hundred basis points drag on growth. So just thoughts on, you know, would you get out of continue to get out of, you know, some of the non core businesses?

Joe Dizik, CEO, Integer Holdings: Sure. So if I go all the way back to the portfolio analysis we did in 2017, that led to the divestiture of Advanced Surgical and Orthopedic business because we didn’t see the strategic differentiate. We didn’t see technology differentiation in those markets. So that was $400,000,000,000 of what was then a $1,500,000,000 business. So we went down to $1,100,000,000 and now we’ve grown back to the 1.9 ish at midpoint this year.

At that time, we reflected on the Advanced Surgical and Ortho business, we reflected on the Portable Medical that we’re exiting, and we’ve reflected on Electrochem. Those were all things that we said, hey, we should be looking and monitoring these. So we did the Advanced Surgical and Ortho in 2018. We made the decision to exit portable medical in 2021. It’s taking customers four years to move this low to no technology differentiation products away from us, which is indicative of the stickiness of what we do, because what we still do today or what we kept is the stuff that’s very sticky with real technology differentiation.

So from a stickiness perspective, gives you context. So electrochem was also something we were continuously evaluating and we saw the opportunity last year execute on that. So to answer your question, we love the markets we’re in in cardiovascular. And although cardiac rhythm management is a slower growth, we love the technology that we bring to the industry and we love the cash that it generates and predictability of it because that supports investing in the faster growing parts of the business. So when you have a portfolio, it’s nice to have stuff that’s throwing off good, strong cash because it’s deep technology that’s been embedded in the industry for decades, which is cardiac with a management.

That same technology that’s been deeply embedded in cardiac rhythm management is what we leverage in neuromodulation to do complete implantable pulse generator, same technology, which is why cardiac rhythm management is so important to the neuromodulation business and enabling us to fully vertically integrate an implantable pulse generator in neuromodulation. So we in fact love our cardiac rhythm management business for that reason. And that enables the neuromodulation growth and the holistic vertically integrated offering that we have there. So we love cardiac rhythm management, neuromodulation, the cardiovascular segments we’re in. And so the other markets, we’re done with portable medical, it’ll be about $40,000,000 And what that represents is mostly what we’re still doing for the company that bought our Advanced Surgical and Orthopedic business.

That activity was in our the plants that we kept. And so we agreed to keep doing that for them as part of a long term agreement because it didn’t make sense for them or us to disrupt our customers because moving that product would require the customers to engage. And so it’s $40,000,000 that’ll be flattish to slightly declining over time, but it’s become such a small piece of the business that it’s pretty immaterial. And so the focus is on the cardiovascular and cardiac rhythm management neuromodulation in the four targeted growth markets.

Craig Bijou, Med Tech Analyst, BVAG: Great. I think with that, out of time. So Peyman, Joe, really appreciate you guys coming.

Joe Dizik, CEO, Integer Holdings: Excellent. Thanks for having us. Everybody.

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