Why Integra LifeSciences Stock Is Tumbling

Integra LifeSciences Holdings Corp IART shares are trading lower Tuesday after the company initiated a voluntary global recall. 

What Happened: After consulting with the FDA, Integra decided to initiate a recall of all products manufactured in its Boston, Massachusetts facility that were distributed between March 1, 2018 and May 22, 2023.

"The Company identified through an internal investigation process in its Boston facility deviations with endotoxin testing that may have resulted in the release of products with higher levels of endotoxins than permitted by the product specifications. Higher levels of endotoxins can induce an immune response, leading to a post-operative fever," the company said in a regulatory filing.

The recall includes SurgiMend, PriMatrix, Revize and TissueMend products.

As a result of the voluntary recall, Integra anticipates an impairment charge of approximately $22 million to be recorded in the quarter ending June 30.

The company now expects second-quarter revenue to be between $372 million and $376 million and adjusted earnings to be between 55 cents and 59 cents per share.

See Also: No More Bloodshed: Walgreens Makes Peace with Consumers in Theranos Test-Tangle Saga

IART Price Action: Integra shares were down 12.8% at $44.25 at the time of publication, according to Benzinga Pro.

Photo: Leo from Pixabay.