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Globus Medical reported 4Q23 orthopedic sales of $616.5 million, +124.6% compared to the fourth quarter of 2022. For the full year, the company generated $1.57 billion in orthopedic sales and grew +53.3% compared to the prior year.
In its final quarter providing legacy sales data, the combined organization said it had legacy Globus sales growth of +11% and legacy NuVasive growth of +2%, offset by deal dissynergies and customer uncertainty with the merger.
On the commercial front, the company realigned its U.S. and international sales teams and implemented new team structures to support surgeons. Globus expects $150 million in sales dissynergies in 2024, which some analysts felt was high given the company’s minimal 3% U.S. rep overlap.
Globus’ legacy enabling technology sales grew just 2% in the fourth quarter after a long run of defying market dynamics. The company cited more volume-based deals and country mix in its technology’s lower upfront sales growth and expects quarterly ebb-and-flow instead of an inflection point.
The imminent entrance of competitive spine robots from Stryker and DePuy Synthes could further disrupt Globus’ enabling technology sales. However, the company said more competition in spinal robotics is both expected and welcomed.
“We’ve got a robot that is superior,” said Globus Medical CEO Dan Scavilla. “Part of doing this merger was to create the size and the reach, not only penetrate faster but compete in this fashion. I think we’re well poised to go head-to-head with anybody in this sense. There may be more choices over the long term for our customers. That’s why you have to focus on driving innovation and putting products out that make meaningful differences.”
Including stated revenue dissynergies and potential cross-selling opportunities, Globus Medical expects 2024 orthopedic sales between $2.45 billion and $2.475 billion, reflecting pro forma growth between 2.3% and 3.3%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $2.9 | $2.5 | $0.4 | 14% |
| Knees | $1.7 | $1.4 | $0.2 | 15.8% |
| Hips | $1.2 | $1.1 | $0.1 | 11.6% |
| Spine | $521.9 | $218.6 | $303.3 | 138.8% |
| Trauma | $18.3 | $12.9 | $5.3 | 41.4% |
| Orthobiologics | $40.9 | $11.0 | $29.8 | 270.7% |
| Enabling Technology | $32.7 | $29.5 | $3.2 | 10.9% |
| Total | $616.5 | $274.5 | $342.0 | 124.6% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $12.2 | $11.0 | $1.3 | 11.6% |
| Knees | $7.2 | $6.3 | $0.9 | 13.9% |
| Hips | $5.1 | $4.7 | $0.4 | 8.5% |
| Spine | $1,299.1 | $847.2 | $451.9 | 53.3% |
| Trauma | $42.1 | $28.2 | $13.9 | 49.2% |
| Orthobiologics | $86.3 | $40.4 | $46.0 | 114% |
| Enabling Technology | $128.7 | $96.1 | $32.6 | 33.9% |
| Total | $1,568.5 | $1,022.8 | $545.6 | 53.3% |
Orthopedic Sales by Geography
| Region | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $490.8 | $233.2 | $257.6 | 110.5% |
| OUS | $125.7 | $41.3 | $84.4 | 204.6% |
| Total | $616.5 | $274.5 | $342.0 | 124.6% |
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,279.8 | $871.9 | $407.8 | 46.8% |
| OUS | $288.7 | $150.9 | $137.8 | 91.3% |
| Total | $1,568.5 | $1,022.8 | $545.6 | 53.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $616.5 | |
| Cost of Sales | $265.5 | 43.1% |
| R & D | $52.3 | 8.5% |
| Selling and Admin | $244.7 | 39.7% |
| Other | $30.2 | 4.9% |
| Comprehensive Income | $23.9 | 3.9% |
Globus Medical reported 4Q23 orthopedic sales of $616.5 million, +124.6% compared to the fourth quarter of 2022. For the full year, the company generated $1.57 billion in orthopedic sales and grew +53.3% compared to the prior year.
In its final quarter providing legacy sales data, the combined organization said it had legacy Globus sales...
Globus Medical reported 4Q23 orthopedic sales of $616.5 million, +124.6% compared to the fourth quarter of 2022. For the full year, the company generated $1.57 billion in orthopedic sales and grew +53.3% compared to the prior year.
In its final quarter providing legacy sales data, the combined organization said it had legacy Globus sales growth of +11% and legacy NuVasive growth of +2%, offset by deal dissynergies and customer uncertainty with the merger.
On the commercial front, the company realigned its U.S. and international sales teams and implemented new team structures to support surgeons. Globus expects $150 million in sales dissynergies in 2024, which some analysts felt was high given the company’s minimal 3% U.S. rep overlap.
Globus’ legacy enabling technology sales grew just 2% in the fourth quarter after a long run of defying market dynamics. The company cited more volume-based deals and country mix in its technology’s lower upfront sales growth and expects quarterly ebb-and-flow instead of an inflection point.
The imminent entrance of competitive spine robots from Stryker and DePuy Synthes could further disrupt Globus’ enabling technology sales. However, the company said more competition in spinal robotics is both expected and welcomed.
“We’ve got a robot that is superior,” said Globus Medical CEO Dan Scavilla. “Part of doing this merger was to create the size and the reach, not only penetrate faster but compete in this fashion. I think we’re well poised to go head-to-head with anybody in this sense. There may be more choices over the long term for our customers. That’s why you have to focus on driving innovation and putting products out that make meaningful differences.”
Including stated revenue dissynergies and potential cross-selling opportunities, Globus Medical expects 2024 orthopedic sales between $2.45 billion and $2.475 billion, reflecting pro forma growth between 2.3% and 3.3%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $2.9 | $2.5 | $0.4 | 14% |
| Knees | $1.7 | $1.4 | $0.2 | 15.8% |
| Hips | $1.2 | $1.1 | $0.1 | 11.6% |
| Spine | $521.9 | $218.6 | $303.3 | 138.8% |
| Trauma | $18.3 | $12.9 | $5.3 | 41.4% |
| Orthobiologics | $40.9 | $11.0 | $29.8 | 270.7% |
| Enabling Technology | $32.7 | $29.5 | $3.2 | 10.9% |
| Total | $616.5 | $274.5 | $342.0 | 124.6% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $12.2 | $11.0 | $1.3 | 11.6% |
| Knees | $7.2 | $6.3 | $0.9 | 13.9% |
| Hips | $5.1 | $4.7 | $0.4 | 8.5% |
| Spine | $1,299.1 | $847.2 | $451.9 | 53.3% |
| Trauma | $42.1 | $28.2 | $13.9 | 49.2% |
| Orthobiologics | $86.3 | $40.4 | $46.0 | 114% |
| Enabling Technology | $128.7 | $96.1 | $32.6 | 33.9% |
| Total | $1,568.5 | $1,022.8 | $545.6 | 53.3% |
Orthopedic Sales by Geography
| Region | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $490.8 | $233.2 | $257.6 | 110.5% |
| OUS | $125.7 | $41.3 | $84.4 | 204.6% |
| Total | $616.5 | $274.5 | $342.0 | 124.6% |
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,279.8 | $871.9 | $407.8 | 46.8% |
| OUS | $288.7 | $150.9 | $137.8 | 91.3% |
| Total | $1,568.5 | $1,022.8 | $545.6 | 53.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $616.5 | |
| Cost of Sales | $265.5 | 43.1% |
| R & D | $52.3 | 8.5% |
| Selling and Admin | $244.7 | 39.7% |
| Other | $30.2 | 4.9% |
| Comprehensive Income | $23.9 | 3.9% |
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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.
