Globus Medical Reports 1Q17 Revenue

Globus Medical reported 1Q17 revenue of $155.8MM, +11.9% vs. 1Q16. (U.S. $129.7MM, +1.6%; ex-U.S. $26.1MM, +123.4%) ORTHOWORLD estimates for segment growth follow.

Geographic results: U.S. $129.7MM, +1.6%; ex-U.S. $26.1MM, +123.4%

1Q17 performance highlights:

• Growth-driving products included expandable interbody systems, COALITION MIS, INDEPENDENCE MIS, CREO MIS and biologics, as well as QUARTEX and Alphatec assets
• $15.2MM in ex-U.S. sales from Alphatec acquisition
• Japan regulatory submissions progressing well; products could launch in 2H
• Other geographies of focus include Australia, Germany, India and the U.K.
• Launched three spine products, including Rod Link Reducer instruments for complex curvatures and spinal deformity; technique increases leverage to manipulate the spine in the axial, coronal and sagittal planes simultaneously
• Toward end of 1Q, launched ViaCell allograft: average of 0.7MM cells per cc, of which 20% are mesenchymal stem cells and osteoprogenitor cells
• 2H launches include deformity correction solutions in Europe, trauma products (~2/3 of trauma products now FDA-cleared; maintaining potential $2MM in revenue in 2017)
• Excelsius GPS feedback positive at society meetings; hopeful for 2Q regulatory approval
• SECURE-C progress: ready to publish 7-year data on results in cervical arthroplasty; in Europe, have two next-gen devices already on the market
• Noted a significant increase in competitive rep recruitment

Sources: Globus Medical, Inc.; ORTHOWORLD estimates

An ORTHOWORLD Observation:

Globus Medical intends to gain a larger footprint in hospitals and institutions with its emerging technology initiatives—trauma and robotics.

The products also support Globus Medical’s drive to reach $1.0BB in sales—though NuVasive will get there first. Today, NuVasive is guiding toward 2017 revenue of $1.065BB, while Globus is expecting $625.0MM.

Of the top five companies in spine by ORTHOWORLD’s 2016 estimates (excluding orthobiologic revenue), NuVasive is at #3 and Globus at #5, with just over $260.0MM between them.

Favorite