Globus Medical Reports 2Q17 Revenue

by Julie A. Vetalice on August 03, 2017

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Globus Medical reported 2Q17 revenue of $152.4MM, +10.8% vs. 2Q16, and 1H17 revenue of $308.2MM, +11.4% vs. 1H16. ORTHOWORLD estimates for segment growth follow.

	2Q17	2Q16	$ Change	% Change
Spine	$144.9	$131.3	$13.6	10.4%
Orthobiologics	$7.5	$6.2	$1.3	21.2%
Total	$152.4	$137.5	$14.9	10.8%

	1H17	1H16	$ Change	% Change
Spine	$293.1	$263.5	$29.6	11.2%
Orthobiologics	$15.1	$13.3	$1.8	13.7%
Total	$308.2	$276.8	$31.4	11.4%

2Q17 Geographic growth: U.S. $126.2MM, +1.2%; ex-U.S. $26.1MM, +104.5% (reflects Alphatec acquisition)

Performance highlights:

Growth driven by expandable interbodies, CREO MIS, biologics, QUARTEX
Alphatec contributed $15.5MM to ex-U.S. sales
Significant hiring of competitive reps—through 1H, hired more than in any full year of company history
No longer seeing turnover among productive reps as experienced in 1H16
Continues to expand in-house manufacturing
After quarter’s close, announced acquisition of KB Medical, provider of AQrate robotic system; adds strength in product development and IP
Progressing with regulatory submissions and approvals in Japan; expecting full launch of systems in 2H17
In 3Q, performed the first Globus surgery in Japan (with CREO Threaded thoracolumbar stabilization)
Resubmitted FDA 510(k) for Excelsius GPS in June and still expecting 3Q clearance; capital salesforce is trained
Expecting to launch more spine products by year-end; continuing to expand IP portfolio for expandable interbody devices
Completed 50% of trauma product FDA clearances, still building out field sales; seeking to launch product at Orthopaedic Trauma Association meeting in October and gain 4Q revenue contributions
Maintains full-year guidance of $625.0MM

Sources: Globus Medical, Inc.; ORTHOWORLD estimates

Globus Medical reported 2Q17 revenue of $152.4MM, +10.8% vs. 2Q16, and 1H17 revenue of $308.2MM, +11.4% vs. 1H16. ORTHOWORLD estimates for segment growth follow.

Q17
Q16
$ Change
% Change

Spine
$144.9 ...

Globus Medical reported 2Q17 revenue of $152.4MM, +10.8% vs. 2Q16, and 1H17 revenue of $308.2MM, +11.4% vs. 1H16. ORTHOWORLD estimates for segment growth follow.

	2Q17	2Q16	$ Change	% Change
Spine	$144.9	$131.3	$13.6	10.4%
Orthobiologics	$7.5	$6.2	$1.3	21.2%
Total	$152.4	$137.5	$14.9	10.8%

	1H17	1H16	$ Change	% Change
Spine	$293.1	$263.5	$29.6	11.2%
Orthobiologics	$15.1	$13.3	$1.8	13.7%
Total	$308.2	$276.8	$31.4	11.4%

2Q17 Geographic growth: U.S. $126.2MM, +1.2%; ex-U.S. $26.1MM, +104.5% (reflects Alphatec acquisition)

Performance highlights:

Growth driven by expandable interbodies, CREO MIS, biologics, QUARTEX
Alphatec contributed $15.5MM to ex-U.S. sales
Significant hiring of competitive reps—through 1H, hired more than in any full year of company history
No longer seeing turnover among productive reps as experienced in 1H16
Continues to expand in-house manufacturing
After quarter’s close, announced acquisition of KB Medical, provider of AQrate robotic system; adds strength in product development and IP
Progressing with regulatory submissions and approvals in Japan; expecting full launch of systems in 2H17
In 3Q, performed the first Globus surgery in Japan (with CREO Threaded thoracolumbar stabilization)
Resubmitted FDA 510(k) for Excelsius GPS in June and still expecting 3Q clearance; capital salesforce is trained
Expecting to launch more spine products by year-end; continuing to expand IP portfolio for expandable interbody devices
Completed 50% of trauma product FDA clearances, still building out field sales; seeking to launch product at Orthopaedic Trauma Association meeting in October and gain 4Q revenue contributions
Maintains full-year guidance of $625.0MM

Sources: Globus Medical, Inc.; ORTHOWORLD estimates