Business Overview: Integer Holdings Corporation (NYSE: ITGR)

---

Executive Summary

Integer Holdings Corporation, headquartered in Plano, Texas, is one of the largest medical device contract development and manufacturing organizations (CDMOs) in the world. Operating under legacy brands including Greatbatch Medical and Lake Region Medical, Integer designs and manufactures the components and finished devices that sit inside other companies' cardiac, vascular, and neuromodulation products.

Integer matters because it sits at the center of the medtech supply chain rather than competing directly as a device brand: its three largest customers — Abbott Laboratories, Boston Scientific, and Medtronic — each individually exceeded 10% of 2025 revenue and together accounted for 49% of sales, underscoring how deeply embedded Integer is in the manufacturing of some of the most safety-critical electronic implants on the market, from pacemaker batteries to coronary stents.

---

1. Core Business Model & How They Work

Integer does not sell branded medical devices to hospitals; it sells engineering expertise and regulated manufacturing capacity to the companies that do.

Large medtech OEMs (Abbott, Boston Scientific,
Medtronic, and others) need FDA-regulated
components or finished devices
        ➡️
Integer designs, qualifies, and manufactures
components (batteries, leads, catheters, stents) or
full finished devices under FDA quality systems
        ➡️
OEM integrates / private-labels Integer's output into
its own branded device
        ➡️
Integer earns long-term, contracted manufacturing
revenue, reinforced by ~731 owned patents and deep
process know-how that is costly to requalify elsewhere

Because medical device manufacturing is FDA-regulated, once a component is designed into an OEM's device and cleared through regulatory approval, switching manufacturers requires costly, time-consuming requalification — which is the core of Integer's durability as a supplier rather than a price-competing commodity vendor.

---

2. Business Segments

Integer reports as one reportable segment but organizes its portfolio into three product lines:

Integer Holdings (one reportable segment)
├── Cardio & Vascular — stents, balloon catheters,
│     guidewires, introducers, structural heart,
│     vascular access components
├── Cardiac Rhythm Management & Neuromodulation —
│     batteries, feedthroughs, capacitors, leads,
│     implantable pulse generator (IPG) components
└── Other Markets — including Portable Medical,
      which is being wound down with final sales and
      market exit expected in 2026

---

3. Product Portfolio

---

4. Competitive Landscape

The medical device CDMO industry is fragmented, with "several hundred" competing companies, but Integer notes that few rivals match its full breadth of capabilities across both components and finished devices. Competition comes from:

• Niche component suppliers focused on a single technology (e.g., battery-only or catheter-only manufacturers).
• Broad-capability CDMOs building out similar vertically integrated offerings.
• Customers' own in-house manufacturing and deliberate dual-sourcing strategies, which large OEMs use to avoid single-supplier dependence — a structural ceiling on how much pricing leverage any one CDMO, including Integer, can exert.

Competitive positioning is driven by reputation, quality and regulatory track record, delivery reliability, breadth of capability, price, and increasingly the ability to offer complete, single-vendor supply-chain solutions.

---

5. Strategic Strengths & Risks

Strengths:

• 731 owned patents (as of year-end 2025) and decades of FDA-regulated manufacturing know-how across both the Greatbatch Medical and Lake Region Medical legacies.
• High switching costs once a component is designed into an OEM's cleared device — regulatory requalification makes supplier changes slow and expensive.
• Broad capability across both components and finished devices, which fewer competitors can match end-to-end.
• A ~$675 million firm backlog at year-end 2025 providing revenue visibility.

Risks:

• Severe customer concentration — Abbott, Boston Scientific, and Medtronic alone are 49% of sales; losing or shrinking any one relationship would be material.
• Dual-sourcing pressure from OEMs intentionally limits Integer's pricing power even where it is deeply embedded.
• Portfolio transition risk as Portable Medical winds down through 2026.
• Exposure to medtech industry cyclicality, regulatory change (FDA), and global supply-chain/manufacturing risk, with roughly 47% of 2025 shipments going outside the U.S.

---

6. Financial Overview

---

7. Summary Conclusion

Integer Holdings has built a durable position as an essential, deeply embedded supplier to the world's largest medtech OEMs by combining broad regulated-manufacturing capability with the high switching costs inherent in FDA-cleared device components. That embeddedness is real, but it cuts both ways: Integer's own customers are large enough, and intentional enough about dual-sourcing, to cap how much pricing power Integer can ever exercise — meaning its moat shows up more in customer retention and backlog visibility than in margin expansion, and its biggest forward risk is the concentration of nearly half its revenue in just three customer relationships.