<PAGE>
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1997

                         Commission file number 0-26224

                        INTEGRA LIFESCIENCES CORPORATION
             (Exact name of registrant as specified in its charter)

                    Delaware                                  51-0317849
      (State or other jurisdiction of                      (I.R.S. Employer
      incorporation or organization)                      Identification No.)

          105 Morgan Lane
      Plainsboro, New Jersey                                     08536
(Address of principal executive offices)                      (Zip code)

                                 (609) 275-0500
              (Registrant's telephone number, including area code)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                                  [x] - Yes         [ ] - No

         As of May 12, 1997 the registrant had outstanding 29,797,366 shares of
Common Stock, $.01 par value.

                                       1


<PAGE>

                        INTEGRA LIFESCIENCES CORPORATION

                                      INDEX


<TABLE>
<CAPTION>
                                                                                        Page Number
                                                                                        -----------
<S>                                                                                     <C>


PART I.           FINANCIAL INFORMATION


Item 1.  Financial Statements

                  Condensed Consolidated Balance Sheets as of March 31, 1997
                     and December 31, 1996 (Unaudited)                                           3

                  Condensed Consolidated Statements of Operations for the
                     three months ended March 31, 1997 and 1996 (Unaudited)                      4

                  Condensed Consolidated Statements of Cash Flows for the
                     three months ended March 31, 1997 and 1996 (Unaudited)                      5

                  Notes to Unaudited Condensed Consolidated Financial
                     Statements                                                                  6


Item 2.  Management's Discussion and Analysis of Financial Condition
                  and Results of Operations                                                      7


PART II. OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K                                                        9


SIGNATURES                                                                                       10

Exhibits                                                                                         11
</TABLE>


                                       2



<PAGE>


PART I.  FINANCIAL INFORMATION


Item 1.   Financial Statements

                INTEGRA LIFESCIENCES CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                   (UNAUDITED)

(Dollars in thousands)


<TABLE>
<CAPTION>
                                                         March 31, 1997     December 31, 1996
                                                         --------------     -----------------
<S>                                                       <C>                    <C>       

ASSETS
- ------
Current Assets:
     Cash and cash equivalents........................    $      8,817           $   11,762
     Short-term investments...........................          24,384               22,514
     Accounts receivable, net.........................           2,376                2,902
     Inventories......................................           2,766                2,635
     Prepaid expenses and other current assets........             412                  338
                                                          ------------           ----------
         Total current assets.........................          38,755               40,151
 Property and equipment, net..........................           8,214                8,554
 Other assets.........................................              31                   36
                                                          ------------           ----------
    Total assets......................................    $     47,000           $   48,741
                                                          ============           ==========

LIABILITIES AND STOCKHOLDERS' EQUITY 
- ------------------------------------ 
Current Liabilities:
   Accounts payable, trade............................    $        411           $      162
   Accrued expenses and other current liabilities.....           1,599                2,053
                                                          ------------           ----------
         Total current liabilities....................           2,010                2,215
 Other liabilities....................................             150                  142
                                                          ------------           ----------

         Total liabilities............................           2,160                2,357
                                                          ------------           ----------

Stockholders' Equity:

Preferred stock, $.01 par value (15,000,000
   authorized shares; no shares issued or                            
   outstanding).......................................          --                    --
Common stock, $.01 par value (60,000,000 

   authorized shares; 29,630,496 and
   28,551,315 issued and outstanding at
   March 31, 1997 and December 31, 1996, 
   respectively)......................................             296                  285
Additional paid-in capital............................         105,723              105,447
Unearned compensation related to stock options........            (297)                (328)
Notes receivable - related parties....................             (35)                 (35)
Unrealized losses on investments......................             (35)                  (4)
Accumulated deficit...................................         (60,812)             (58,981)
                                                          -------------          -----------

         Total stockholders' equity...................          44,840               46,384
                                                          ------------           ----------

 Total liabilities and stockholders' equity...........    $     47,000           $   48,741
                                                          ============           ==========
</TABLE>


                   The accompanying notes are an integral part
               of the condensed consolidated financial statements

                                        3



<PAGE>

                INTEGRA LIFESCIENCES CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

(In thousands, except per share amounts)


<TABLE>
<CAPTION>
                                                    Three Months Ended March 31,
                                                    ----------------------------
                                                          1997             1996
                                                          ----             ----
<S>                                                   <C>              <C>       

REVENUE
- -------
Product sales........................................ $    2,970       $    2,312
Research grants......................................        154              207
Product license fees.................................          -              500
Royalties............................................         64               62
Contract product development.........................          -               26
                                                      ----------       ----------
    Total revenue....................................      3,188            3,107

COSTS AND EXPENSES
- ------------------
Cost of product sales................................      1,556            1,454
Research and development.............................      1,417            1,532
Selling, general and administrative..................      2,533            2,053
                                                      ----------       ----------
    Total costs and expenses.........................      5,506            5,039
                                                      ----------       ----------

Operating loss.......................................     (2,318)          (1,932)
Other income.........................................        488              372
                                                      ----------       ----------

Net income (loss).................................... $   (1,830)      $   (1,560)
                                                      ==========       ==========

Net income (loss) per share.......................... $    (0.06)      $    (0.06)
                                                      ==========       ==========
Weighted average number of common and
    common equivalent shares outstanding.............     28,935           26,863
                                                      ==========       ==========
</TABLE>


                    The accompany notes are an integral part
               of the condensed consolidated financial statements

                                        4



<PAGE>

                INTEGRA LIFESCIENCES CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


(In thousands)


<TABLE>
<CAPTION>
                                                                                           Three Months Ended March 31,
                                                                                           ----------------------------
                                                                                            1997                 1996
                                                                                            ----                 ----
<S>                                                                                 <C>                  <C>         

OPERATING ACTIVITIES:
    Net loss...............................................................         $    (1,830)         $    (1,560)
    Adjustments to reconcile net income (loss) to net cash used in
    operating activities:

       Depreciation and amortization.......................................                 486                  515
       Gain on sale of assets..............................................                 (43)                 (23)
       Amortization of discount and interest on investments................                  22                 (126)
       Amortization of unearned compensation...............................                  31                    -
       Changes in assets and liabilities:
          Accounts receivable..............................................                 526                 (256)
          Inventories......................................................                (131)                (736)
          Prepaid expenses and other current assets........................                 (74)                  76
          Non-current assets...............................................                   -                   69
          Accounts payable, accrued expenses and other liabilities.........                (197)                 (34)
                                                                                    ------------         ------------

       Net cash used in operating activities...............................              (1,210)              (2,075)
                                                                                    ------------         ------------

INVESTING ACTIVITIES:

    Proceeds from sale of assets...........................................                  48                   69
    Payments of acquired bankruptcy claims.................................                   -                   (9)
    Purchases of available-for-sale investments............................              (9,922)             (28,682)
    Proceeds from sale/maturity of investments.............................               8,000                1,200
    Purchases of property and equipment....................................                (147)                (342)
                                                                                    ------------         ------------

       Net cash used in investing activities...............................              (2,021)             (26,764)
                                                                                    ------------         ------------

FINANCING ACTIVITIES:

    Principal payment on notes receivable - related parties................                   -                   30
    Payments of long-term debt.............................................                   -                  (10)
    Proceeds from exercised stock options..................................                 286                  578

    Proceeds from sale of common stock.....................................                   -               35,759
                                                                                    -----------          -----------

       Net cash provided by financing activities...........................                 286               36,357
                                                                                    -----------          -----------

Net (decrease) increase in cash and cash equivalents.......................              (2,945)               7,518

Cash and cash equivalents at beginning of period...........................              11,762                4,512
                                                                                    -----------          -----------

Cash and cash equivalents at end of period.................................         $     8,817          $    12,030
                                                                                    ===========          ===========
</TABLE>


                   The accompanying notes are an integral part
               of the condensed consolidated financial statements

                                        5



<PAGE>

                INTEGRA LIFESCIENCES CORPORATION AND SUBSIDIARIES
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.    In the opinion of management, the March 31 unaudited condensed
      consolidated financial statements contain all adjustments (consisting only
      of normal recurring accruals) which the Company considers necessary for a
      fair presentation of the financial position and results of operations of
      the Company. Operating results for the three month period ended March 31,
      1997 are not necessarily indicative of the results to be expected for the
      entire year. Certain information and footnote disclosures normally
      included in financial statements prepared in accordance with generally
      accepted accounting principles have been condensed or omitted. The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and
      assumptions that affect the reported amounts of assets and liabilities,
      including disclosures of contingent assets and liabilities, and the
      reported amounts of revenues and expenses during the reporting periods.
      Actual results could differ from those estimates. These unaudited
      condensed consolidated financial statements should be read in conjunction
      with the Company's consolidated financial statements for the year ended
      December 31, 1996 included in the Company's Annual Report on Form 10-K.


2.    Inventories consist of the following: 


<TABLE>
<CAPTION>
      (In thousands)                                  March 31, 1997          December 31, 1996
                                             ----------------------     -------------------
<S>                                          <C>                        <C>     
      Finished goods.......................             $  1,203                   $  1,007
      Work-in-process......................                1,256                      1,270
      Raw materials........................                  307                        358
                                             -------------------        -------------------
                                                        $  2,766                   $  2,635
                                             ===================        ===================
</TABLE>


3.    In February 1997, the Financial Accounting Standards Board issued
      Statement of Financial Accounting Standards No. 128, "Earnings Per Share"
      ("SFAS 128"). SFAS 128 establishes standards for computing and presenting
      earnings per share ("EPS") and supersedes APB Opinion No. 15, "Earnings
      Per Share" ("Opinion 15"). SFAS 128 replaces the presentation of primarily
      EPS with a presentation of basic EPS which excludes dilution and is
      computed by dividing income available to common stockholders by the
      weighted-average number of common shares outstanding during the period.
      This statement also requires dual presentation of basic EPS and diluted
      EPS on the face of the income statement for all periods represented. SFAS
      128 is effective for financial statements issued for periods ending after
      December 15, 1997, including interim periods. Early adoption is not
      permitted and the Statement requires restatement of all prior period EPS
      data presented after the effective date.


      The Company will adopt SFAS 128 effective with its 1997 year-end. If SFAS
      128 had been adopted at March 31, 1997, there would have been no change in
      the EPS as reflected in the accompanying financial statements for the
      periods ended March 31, 1997 and 1996.

                                       6


<PAGE>


Item 2.      Management's Discussion and Analysis of Financial Condition
                  and Results of Operations

     The following discussion contains trend information and other
forward-looking statements related to the future use of INTEGRA(TM) Artificial
Skin and anticipated expenditure levels and are made pursuant to the safe harbor
provisions of the Securities Litigation Reform Act of 1995. Such statements
involve risks and uncertainties which may cause results to differ materially
from those set forth in these statements. In addition, the economic,
competitive, governmental, technological and other factors identified in the
Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission could affect such results.

General

     The Company is dedicated to the acquisition, discovery and development of
synergistic technologies for creating and marketing cost-effective,
off-the-shelf, bio-absorbable products designed to regenerate specific body
tissues and organs, or treat many cell-based diseases or age-associated
conditions. The Company has developed principally by combining existing
businesses, acquiring synergistic technologies and forming strategic business
and technological alliances.

Results of Operations

Three Months Ended March 31, 1997 Compared to Three Months Ended March 31, 1996

     Total revenues increased to approximately $3.2 million for the three months
ended March 31, 1997 from $3.1 million for the three months ended March 31,1996,
as an increase in product sales was offset by decreases in licensing fees and
research grant revenue. Product sales increased to $3.0 million for the three
months ended March 31, 1997 from $2.3 million for the three months ended March
31, 1996. Sales of INTEGRA(TM) Artificial Skin ("INTEGRA") increased to $1.25
million for the three months ended March 31, 1997 compared to $180,000 in the
first quarter of 1996. INTEGRA received U.S. Food and Drug Administration
premarket approval in March 1996. In the first quarter 1997, North American
INTEGRA sales represented 83% of total INTEGRA product sales as approximately
50% of North American burn centers have ordered the product at least one time.
In addition, there is at least one physician trained on the use of INTEGRA in
approximately 70% of the North American burn centers. The Company believes that
the primary application of INTEGRA has been for patients with severe
life-threatening burns, but is aware of its application in reconstructive and
wound healing procedures. Factors the Company believes influence the use and
sale of INTEGRA include physician training prior to product use, the collection

of pharma-economic data to address initial product reimbursement issues,
additional positive clinical results and the Company's ability to obtain FDA
approvals for additional indications.

     Product sales of the Company's other medical devices were approximately
$1.7 million for the three months ended March 31, 1997 down from $2.1 million
for the three months ended March 31, 1996. The infection control product line
declined by $490,000 compared to the first quarter 1996 due to delays in orders
and shipments to two private label customers. The Company's dental product line
continued to show increases due to the BioMend product, and the Company resumed
shipments of its ophthalmic product during the first quarter of 1997. Sales of
the Company's other medical devices can vary significantly on a quarter to
quarter basis depending on the timing of shipments to private label customers
and contract distributors. Export sales for the three months ended March 31,
1997 increased to $290,000 from $270,000 for the three months ended March 31,
1996 and included an increase of $70,000 in international INTEGRA sales.

     Other revenue, which includes grant revenue, license fees, contract
development revenue and royalties, was $220,000 for the three months ended March
31, 1997 compared to $800,000 for the three months ended March 31, 1996.
Included in other revenue during the first quarter of 1996 was a $500,000
licensing fee received as part of an agreement with Cambridge Antibody
Technology Limited involving the 

                                       7


<PAGE>

Company's human antibody development program. Grant revenue also declined due to
the completion of a three-year National Institute of Standards and Technology
grant as of December 31, 1996. Grant revenue is expected to continue to be lower
in 1997 unless additional grants are awarded to the Company. The Company
continues to seek research grants, licensing arrangements and development
funding for several of its technologies, although the timing and amount of such
revenue, if any, can not be predicted.

     Cost of product sales increased to approximately $1.6 million (52% of
product sales) for the three months ended March 31, 1997 from $1.5 million (63%
of product sales) for the three months ended March 31, 1996. The decrease in
costs of product sales as a percentage of product sales is primarily
attributable to higher utilization of the Company's INTEGRA manufacturing
facility in 1997 compared to the scale-up period during the first quarter 1996.
Due to the high fixed costs of the manufacturing facility for INTEGRA, the
Company is anticipating higher unit costs until there is a requirement for
higher production volume. The Company believes its current capacity to produce
INTEGRA and its other medical products is sufficient to support significant
growth, and the utilization of this capacity will affect its gross margin on
product sales. The Company continues to seek contract manufacturing
opportunities to increase utilization of its capacity.

     Research and development expense decreased to approximately $1.4 million
for the three-month period ended March 31, 1997 from $1.5 million for the
three-month period ended March 31, 1996. The largest declines were in personnel
and facility costs associated with the Company's Telios operation. The Company

expects the level of research and development expenditures in 1997 to exceed
1996 expenditures as expenditures related to the post-approval study of INTEGRA
and pre-clinical and clinical trials for the Company's regenerative and matrix
medicine technologies expand during the year. The amount of resources and the
allocation of those resources to fund research and development will vary
depending upon a number of factors, including the progress of development of the
Company's technologies, the timing and outcome of pre-clinical and clinical
results, changing competitive conditions and determinations with respect to the
commercial potential of the Company's technologies.

     Selling, general and administrative expense increased to approximately $2.5
million for the three-month period ended March 31, 1997 from $2.1 million for
the three-month period ended March 31, 1996. Sales and marketing expenses
increased by $320,000 as a result of the domestic and international market
introduction of INTEGRA, which included costs associated with the addition of
technical personnel and consultants involved in training and promotional
activities. General and administrative expenses also increased largely due to
increased legal and professional costs. The Company is anticipating modest
increases in sales and marketing expenses over 1996 levels associated with the 
continued introduction of INTEGRA. General and administrative expenses are 
likely to increase and will depend, in part, on the progress of the Company's 
patent litigation lawsuit.

Liquidity and Capital Resources

     At March 31, 1997, the Company had cash, cash equivalents and short-term
investments of approximately $33.2 million and no long-term debt. The Company's
principal uses of funds during the three-month period ended March 31, 1997 were
$1.2 million for operations and $150,000 in purchases of property and equipment.
The Company also received $290,000 in funds from the exercise of stock options
under the Company's stock option plans. The Company anticipates that it will
continue to use its liquid assets to fund operations until sufficient revenues
can be generated through product sales and collaborative arrangements. There can
be no assurance that the Company will be able to generate sufficient revenues to
obtain positive operating cash flows or profitability.

                                       8



<PAGE>


P
ART II.  OTHER INFORMATION


Item 6.   Exhibits and Reports on Form 8-K

(a) Exhibits

         11       Statement re Computation of Per Share Amounts

         27       Financial Data Schedule

(b) Reports on Form 8-K
         None

                                       9



<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.

                                INTEGRA LIFESCIENCES CORPORATION

Date:    May 14, 1997           /s/  Richard E. Caruso
                                ----------------------
                                Richard E. Caruso, Ph.D.
                                Chairman, President and Chief Executive Officer




Date:    May 14, 1997           /s/  David B. Holtz
                                -------------------
                                David B. Holtz
                                Vice President, Treasurer

                                       10






<PAGE>

                                                                      Exhibit 11

Statement of Computation of Per Share Amounts


<TABLE>
<CAPTION>
                                                                Three Months Ended March 31,
                                                                ----------------------------
                                                                  1997                   1996
                                                                  ----                   ----
<S>                                                            <C>                  <C>        

Primary:
     Net loss for the period.............................      $ (1,830)            $   (1,560)
                                                               =========            ===========
     Weighted average number of shares of common
          stock outstanding..............................        28,935                 26,863
     Shares issuable upon exercise of outstanding
          options and warrants...........................         ----                    ----
     Shares assumed to be acquired in accordance  with
          the treasury stock method......................         ----                    ----
                                                               -------              ----------
     Shares used in computing per share income...........       28,935                  26,863
                                                               -------              ----------
     Net loss per share..................................      $ (0.06)             $    (0.06)
                                                               ========             ===========


Fully Diluted:

     Net income (loss) for the period....................      $(1,830)             $   (1,560)
                                                               ========             ===========
     Weighted average number of shares of common
          stock outstanding..............................       28,935                  26,863
     Shares issuable upon exercise of outstanding
          options and warrants...........................        1,130                   3,374
     Shares assumed to be acquired in accordance
          with the treasury stock method.................          (67)                 (1,253)
                                                               --------             -----------
     Shares used in computing per share income...........       29,998                  28,984
                                                               -------              ----------
     Net income (loss) per share.........................      $ (0.06)             $    (0.05)
                                                               ========             ===========
</TABLE>


                                       11





<TABLE> <S> <C>


<ARTICLE>      5
<MULTIPLIER>   1,000
       
<S>                                          <C>
<PERIOD-TYPE>                                3-MOS
<FISCAL-YEAR-END>                                  DEC-31-1997
<PERIOD-START>                                     JAN-01-1997
<PERIOD-END>                                       MAR-31-1997
<CASH>                                                   8,817
<SECURITIES>                                            24,384
<RECEIVABLES>                                            2,376
<ALLOWANCES>                                                 0
<INVENTORY>                                              2,766
<CURRENT-ASSETS>                                        38,755
<PP&E>                                                  12,380
<DEPRECIATION>                                           4,166
<TOTAL-ASSETS>                                          47,000
<CURRENT-LIABILITIES>                                    2,010
<BONDS>                                                      0
<PREFERRED-MANDATORY>                                        0
<PREFERRED>                                                  0
<COMMON>                                                   296
<OTHER-SE>                                             105,723
<TOTAL-LIABILITY-AND-EQUITY>                            47,000
<SALES>                                                  2,970
<TOTAL-REVENUES>                                         3,188
<CGS>                                                    1,556
<TOTAL-COSTS>                                            1,556
<OTHER-EXPENSES>                                             0
<LOSS-PROVISION>                                             0
<INTEREST-EXPENSE>                                           0
<INCOME-PRETAX>                                        (1,830)
<INCOME-TAX>                                                 0
<INCOME-CONTINUING>                                    (1,830)
<DISCONTINUED>                                               0
<EXTRAORDINARY>                                              0
<CHANGES>                                                    0
<NET-INCOME>                                           (1,830)
<EPS-PRIMARY>                                            (.06)
<EPS-DILUTED>                                            (.06)
        


</TABLE>