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Globus Medical reported 1Q21 orthopedic revenue of USD $227.3 million, +19.3% vs. 1Q20. The company’s robotic sales generated nearly $15 million in the quarter, up +86% compared to last year. Spinal implant sales in the U.S. grew over +20%, assisted by robotics pull-through, new product introductions and competitive recruiting. Trauma sales doubled compared to 1Q20, but Globus reiterated its long-term, methodical strategy for building that business.
The company is awaiting FDA clearance of its imaging system and anticipates a third-quarter launch. Moving forward, Globus will increase investments in R&D and seeking acquisition targets. Leadership indicated that the company will be more aggressive in looking for larger deals with an emphasis on technology instead of scale.
Given its first-quarter momentum, Globus increased its 2021 revenue guidance to $925 million, representing growth of +17.2%.
“I would be remiss if I spoke ill of anyone in the market. But I will tell you, the fundamental driver is technology. It’s very attractive for reps stuck at other companies to come over here. They’re good reps, they have good relationships, they want to come over and sell the best technology on the market.” – Globus Medical CEO Dave Demski
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2.8 | $2.8 | $0.0 | 0.9% |
| Knees | $1.7 | $1.7 | $0.0 | 0.1% |
| Hips | $1.1 | $1.1 | $0.0 | 2.2% |
| Spine | $213.1 | $178.9 | $34.2 | 19.1% |
| Trauma | $2.5 | $1.3 | $1.3 | 100% |
| Orthobiologics | $8.9 | $7.7 | $1.3 | 16.4% |
| Total | $227.3 | $190.6 | $36.8 | 19.3% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $193.3 | $158.4 | $34.9 | 22% |
| OUS | $34.0 | $32.1 | $1.9 | 5.9% |
| Total | $227.3 | $190.6 | $36.8 | 19.3% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $227.3 | |
| Cost of Sales | $55.0 | 24.2% |
| R & D | $14.9 | 6.6% |
| Selling and Admin | $97.9 | 43.1% |
| Other | $20.0 | 8.8% |
| Net Earnings | $39.6 | 17.4% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Globus Medical reported 1Q21 orthopedic revenue of USD $227.3 million, +19.3% vs. 1Q20. The company’s robotic sales generated nearly $15 million in the quarter, up +86% compared to last year. Spinal implant sales in the U.S. grew over +20%, assisted by robotics pull-through, new product introductions and competitive recruiting. Trauma sales...
Globus Medical reported 1Q21 orthopedic revenue of USD $227.3 million, +19.3% vs. 1Q20. The company’s robotic sales generated nearly $15 million in the quarter, up +86% compared to last year. Spinal implant sales in the U.S. grew over +20%, assisted by robotics pull-through, new product introductions and competitive recruiting. Trauma sales doubled compared to 1Q20, but Globus reiterated its long-term, methodical strategy for building that business.
The company is awaiting FDA clearance of its imaging system and anticipates a third-quarter launch. Moving forward, Globus will increase investments in R&D and seeking acquisition targets. Leadership indicated that the company will be more aggressive in looking for larger deals with an emphasis on technology instead of scale.
Given its first-quarter momentum, Globus increased its 2021 revenue guidance to $925 million, representing growth of +17.2%.
“I would be remiss if I spoke ill of anyone in the market. But I will tell you, the fundamental driver is technology. It’s very attractive for reps stuck at other companies to come over here. They’re good reps, they have good relationships, they want to come over and sell the best technology on the market.” – Globus Medical CEO Dave Demski
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2.8 | $2.8 | $0.0 | 0.9% |
| Knees | $1.7 | $1.7 | $0.0 | 0.1% |
| Hips | $1.1 | $1.1 | $0.0 | 2.2% |
| Spine | $213.1 | $178.9 | $34.2 | 19.1% |
| Trauma | $2.5 | $1.3 | $1.3 | 100% |
| Orthobiologics | $8.9 | $7.7 | $1.3 | 16.4% |
| Total | $227.3 | $190.6 | $36.8 | 19.3% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $193.3 | $158.4 | $34.9 | 22% |
| OUS | $34.0 | $32.1 | $1.9 | 5.9% |
| Total | $227.3 | $190.6 | $36.8 | 19.3% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $227.3 | |
| Cost of Sales | $55.0 | 24.2% |
| R & D | $14.9 | 6.6% |
| Selling and Admin | $97.9 | 43.1% |
| Other | $20.0 | 8.8% |
| Net Earnings | $39.6 | 17.4% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
