Globus Medical Reports 1Q17 Revenue

by Julie A. Vetalice on May 04, 2017

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.

	1Q17	1Q16	$ Change	% Change
Spine	$148.2	$132.2	$16.03	12.1%
Orthobiologics	$7.6	$7.1	$0.51	7.2%
Total	$155.8	$139.3	$16.55	11.9%

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.

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.

Q17
Q16
$ Change
% Change

Spine
$148.2
$132.2 ...

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.

	1Q17	1Q16	$ Change	% Change
Spine	$148.2	$132.2	$16.03	12.1%
Orthobiologics	$7.6	$7.1	$0.51	7.2%
Total	$155.8	$139.3	$16.55	11.9%

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.

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.