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Globus Medical drove double-digit spine growth in 2Q19 while acquiring StelKast to enter the joint replacement market in 2020 via new robotic applications.
- Acquired knee and hip implant manufacturer StelKast to leverage upcoming total joint applications for ExcelsiusGPS with an anticipated launch of late 2020
- Leadership added $5MM to 2019 revenue guidance to account for the acquisition
- Implant sales grew 12.2% but were offset somewhat by a corresponding double-digit decrease in sales revenue from ExcelsiusGPS placements
- Continuing momentum for spine sales in the U.S. was augmented by strong performances in Japan, Spain, Italy and the U.K.
- Leadership expects a slight deceleration in the second half due to the abatement of pent-up distributor demand
- Launched the SI-LOK SELECT and a system for SI joint fusions within the quarter
- The company is on track to launch an interbody module for ExcelsiusGPS and a spine deformity product in early 4Q
- Launched the AUTOBAHN Tibial Nail and Femoral Nail systems for the growing trauma business
“We made this acquisition to get a product with a safety profile and history from which we can build and
modify and build into the robotic platform. So, the acquisition is obviously more about the
product and the foundation of a larger platform versus anything related to sales.”
– Globus Medical CFO Dan Scavilla on the acquisition of StelKast
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement * | $1.3 | |||
| Knees | $0.8 | |||
| Hips | $0.5 | |||
| Spine | $187.5 | $168.8 | $18.6 | 11.0% |
| Trauma | $0.7 | $0.1 | $0.6 | 833.3% |
| Orthobiologics | $5.1 | $4.5 | $0.6 | 14.3% |
| Total | $194.5 | $173.4 | $21.2 | 12.2% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement * | $1.3 | |||
| Knees | $0.8 | |||
| Hips | $0.5 | |||
| Spine | $365.0 | $338.7 | $26.3 | 7.8% |
| Trauma | $1.2 | $0.1 | $1.1 | 775.9% |
| Orthobiologics | $10.0 | $9.0 | $1.0 | 11.5% |
| Total | $377.5 | $347.8 | $29.7 | 8.5% |
* Acquired StelKast in 2Q19
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $160.0 | $145.4 | $14.6 | 10.0% |
| Ex-US | $34.6 | $28.0 | $6.5 | 23.4% |
| Total | $194.5 | $173.4 | $21.2 | 12.2% |
Net Earnings Data
Net earnings, inclusive of all revenue, are as follows.
| Amt | % of Sales | |
| Sales | $194.5 | |
| Cost of Sales | -$44.0 | 22.6% |
| R & D | -$15.7 | 8.1% |
| Selling and Admin | -$88.4 | 45.4% |
| Other | -$8.3 | 4.2% |
| Net Earnings | $38.2 | 19.6% |
Sources: Globus Medical; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Globus Medical drove double-digit spine growth in 2Q19 while acquiring StelKast to enter the joint replacement market in 2020 via new robotic applications.
Acquired knee and hip implant manufacturer StelKast to leverage upcoming total joint applications for ExcelsiusGPS with an anticipated launch of late 2020
Leadership...
Globus Medical drove double-digit spine growth in 2Q19 while acquiring StelKast to enter the joint replacement market in 2020 via new robotic applications.
- Acquired knee and hip implant manufacturer StelKast to leverage upcoming total joint applications for ExcelsiusGPS with an anticipated launch of late 2020
- Leadership added $5MM to 2019 revenue guidance to account for the acquisition
- Implant sales grew 12.2% but were offset somewhat by a corresponding double-digit decrease in sales revenue from ExcelsiusGPS placements
- Continuing momentum for spine sales in the U.S. was augmented by strong performances in Japan, Spain, Italy and the U.K.
- Leadership expects a slight deceleration in the second half due to the abatement of pent-up distributor demand
- Launched the SI-LOK SELECT and a system for SI joint fusions within the quarter
- The company is on track to launch an interbody module for ExcelsiusGPS and a spine deformity product in early 4Q
- Launched the AUTOBAHN Tibial Nail and Femoral Nail systems for the growing trauma business
“We made this acquisition to get a product with a safety profile and history from which we can build and
modify and build into the robotic platform. So, the acquisition is obviously more about the
product and the foundation of a larger platform versus anything related to sales.”
– Globus Medical CFO Dan Scavilla on the acquisition of StelKast
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement * | $1.3 | |||
| Knees | $0.8 | |||
| Hips | $0.5 | |||
| Spine | $187.5 | $168.8 | $18.6 | 11.0% |
| Trauma | $0.7 | $0.1 | $0.6 | 833.3% |
| Orthobiologics | $5.1 | $4.5 | $0.6 | 14.3% |
| Total | $194.5 | $173.4 | $21.2 | 12.2% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement * | $1.3 | |||
| Knees | $0.8 | |||
| Hips | $0.5 | |||
| Spine | $365.0 | $338.7 | $26.3 | 7.8% |
| Trauma | $1.2 | $0.1 | $1.1 | 775.9% |
| Orthobiologics | $10.0 | $9.0 | $1.0 | 11.5% |
| Total | $377.5 | $347.8 | $29.7 | 8.5% |
* Acquired StelKast in 2Q19
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $160.0 | $145.4 | $14.6 | 10.0% |
| Ex-US | $34.6 | $28.0 | $6.5 | 23.4% |
| Total | $194.5 | $173.4 | $21.2 | 12.2% |
Net Earnings Data
Net earnings, inclusive of all revenue, are as follows.
| Amt | % of Sales | |
| Sales | $194.5 | |
| Cost of Sales | -$44.0 | 22.6% |
| R & D | -$15.7 | 8.1% |
| Selling and Admin | -$88.4 | 45.4% |
| Other | -$8.3 | 4.2% |
| Net Earnings | $38.2 | 19.6% |
Sources: Globus Medical; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
