The spine market saw two landscape-altering mergers in the span of a few months. Not long after the merger of Orthofix and SeaSpine, Globus Medical announced that it would acquire NuVasive in an all-stock transaction valued at $3.1 billion.
Our chart of the month shows the projected top 10 largest players in spine after the M&A dust settles. Globus Medical would become the second largest company in the segment, with annual spinal hardware sales over $1.7 billion, or a market share of 17%. The move has some observers wondering whether the company is rapidly approaching a point of diminishing returns for growth in spine.
Medtronic is the only spine company with more than 20% market share. It, too, faced questions about its ability to drive topline growth, with Evercore analyst Vijay Kumar saying, “I do feel like one of the better theses is Medtronic is too big to grow.” In recent years, Medtronic focused on simplifying its business and taking share.
The new Globus Medical still has some headroom before reaching that threshold. The company believes it can defy the industry’s recent history of troubled spine company integrations and grow above the market average going forward.
The spine market saw two landscape-altering mergers in the span of a few months. Not long after the merger of Orthofix and SeaSpine, Globus Medical announced that it would acquire NuVasive in an all-stock transaction valued at $3.1 billion.
Our chart of the month shows the projected top 10 largest players in spine after the M&A...
The spine market saw two landscape-altering mergers in the span of a few months. Not long after the merger of Orthofix and SeaSpine, Globus Medical announced that it would acquire NuVasive in an all-stock transaction valued at $3.1 billion.
Our chart of the month shows the projected top 10 largest players in spine after the M&A dust settles. Globus Medical would become the second largest company in the segment, with annual spinal hardware sales over $1.7 billion, or a market share of 17%. The move has some observers wondering whether the company is rapidly approaching a point of diminishing returns for growth in spine.
Medtronic is the only spine company with more than 20% market share. It, too, faced questions about its ability to drive topline growth, with Evercore analyst Vijay Kumar saying, “I do feel like one of the better theses is Medtronic is too big to grow.” In recent years, Medtronic focused on simplifying its business and taking share.
The new Globus Medical still has some headroom before reaching that threshold. The company believes it can defy the industry’s recent history of troubled spine company integrations and grow above the market average going forward.
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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.
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