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Globus Medical reported 2Q20 orthopedic revenue of USD $148.9 million, -23.4% vs. 2Q19. The company’s revenue steadily climbed throughout the quarter. After being down -66% in April, Globus improved to -25% in May and then hit double-digit growth in June. That growth accelerated into the mid-teens in July. Company leadership attributed the growth to new product launches, competitive rep hiring and robotics pull through. Likely, the completion of backlogged cases contributed to meaningful revenue growth.
Globus launched six new spine products thus far in 2020, including the HEDRON 3D and Sable MIS TLIF devices. Adoption rates have led the company to double its 3D manufacturing footprint, with the extra capacity coming online in the fourth quarter. The company has purchased SYNOSTE, a developmental-stage Finish company, for consideration totaling $23.5 million. Globus hopes to apply the acquired technology to adult trauma and deformity as well as pediatric spine deformity, with commercialization planned for 2022.
Revenue from enabling technology declined nearly -55% in the quarter, as Globus found it challenging to gain access to hospital administrators and focus them on capital purchases. However, the continuing delays of NuVasive’s Pulse system could swing some pending deals in Globus’s favor. ExcelsiusGPS will gain a new interbody module in 3Q and a cranial module in 4Q. Globus plans to launch its imaging system in 1Q21. However, the company described development progress on its joint replacement robot as a “casualty of COVID” and declined to provide a timetable for launch.
“Our results are a function of the market coming back, but we’re clearly taking share in this environment. Before COVID hit in the first quarter, we were on pace for 15% growth. We are continuing to take share even though we lost ground versus last year. Versus our competition, we’re growing.” – Dave Demski, Globus Medical President and CEO
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
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $0.9 | $1.3 | ($0.4) | (32%) |
| Knees | $0.5 | $0.8 | ($0.3) | (37.7%) |
| Hips | $0.4 | $0.5 | ($0.1) | (23.5%) |
| Spine | $139.9 | $184.7 | ($44.8) | (24.2%) |
| Trauma | $2.0 | $0.7 | $1.3 | 179% |
| Orthobiologics | $6.2 | $7.8 | ($1.7) | (21.4%) |
| Total | $148.9 | $194.5 | ($45.6) | (23.4%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3.6 | $1.3 | $2.4 | 188% |
| Knees | $2.1 | $0.8 | $1.4 | 182.3% |
| Hips | $1.5 | $0.5 | $1.0 | 196.5% |
| Spine | $318.9 | $359.6 | ($40.8) | (11.3%) |
| Trauma | $3.2 | $1.2 | $2.0 | 166.9% |
| Orthobiologics | $13.8 | $15.4 | ($1.6) | (10.2%) |
| Total | $339.5 | $377.5 | ($38.0) | (10.1%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $125.2 | $160.0 | ($34.8) | (21.8%) |
| OUS | $23.8 | $34.6 | ($10.8) | (31.2%) |
| Total | $148.9 | $194.5 | ($45.6) | (23.4%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $283.6 | $307.5 | ($23.9) | (7.8%) |
| OUS | $55.9 | $70.0 | ($14.1) | (20.1%) |
| Total | $339.5 | $377.5 | ($38.0) | (10.1%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $148.9 | |
| Cost of Sales | $50.6 | 34% |
| R & D | $39.5 | 26.5% |
| Selling and Admin | $80.0 | 53.7% |
| Other | ($0.4) | (0.2%) |
| Net Earnings | ($20.8) | (14%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Globus Medical reported 2Q20 orthopedic revenue of USD $148.9 million, -23.4% vs. 2Q19. The company's revenue steadily climbed throughout the quarter. After being down -66% in April, Globus improved to -25% in May and then hit double-digit growth in June. That growth accelerated into the mid-teens in July. Company leadership attributed...
Globus Medical reported 2Q20 orthopedic revenue of USD $148.9 million, -23.4% vs. 2Q19. The company’s revenue steadily climbed throughout the quarter. After being down -66% in April, Globus improved to -25% in May and then hit double-digit growth in June. That growth accelerated into the mid-teens in July. Company leadership attributed the growth to new product launches, competitive rep hiring and robotics pull through. Likely, the completion of backlogged cases contributed to meaningful revenue growth.
Globus launched six new spine products thus far in 2020, including the HEDRON 3D and Sable MIS TLIF devices. Adoption rates have led the company to double its 3D manufacturing footprint, with the extra capacity coming online in the fourth quarter. The company has purchased SYNOSTE, a developmental-stage Finish company, for consideration totaling $23.5 million. Globus hopes to apply the acquired technology to adult trauma and deformity as well as pediatric spine deformity, with commercialization planned for 2022.
Revenue from enabling technology declined nearly -55% in the quarter, as Globus found it challenging to gain access to hospital administrators and focus them on capital purchases. However, the continuing delays of NuVasive’s Pulse system could swing some pending deals in Globus’s favor. ExcelsiusGPS will gain a new interbody module in 3Q and a cranial module in 4Q. Globus plans to launch its imaging system in 1Q21. However, the company described development progress on its joint replacement robot as a “casualty of COVID” and declined to provide a timetable for launch.
“Our results are a function of the market coming back, but we’re clearly taking share in this environment. Before COVID hit in the first quarter, we were on pace for 15% growth. We are continuing to take share even though we lost ground versus last year. Versus our competition, we’re growing.” – Dave Demski, Globus Medical President and CEO
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
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $0.9 | $1.3 | ($0.4) | (32%) |
| Knees | $0.5 | $0.8 | ($0.3) | (37.7%) |
| Hips | $0.4 | $0.5 | ($0.1) | (23.5%) |
| Spine | $139.9 | $184.7 | ($44.8) | (24.2%) |
| Trauma | $2.0 | $0.7 | $1.3 | 179% |
| Orthobiologics | $6.2 | $7.8 | ($1.7) | (21.4%) |
| Total | $148.9 | $194.5 | ($45.6) | (23.4%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3.6 | $1.3 | $2.4 | 188% |
| Knees | $2.1 | $0.8 | $1.4 | 182.3% |
| Hips | $1.5 | $0.5 | $1.0 | 196.5% |
| Spine | $318.9 | $359.6 | ($40.8) | (11.3%) |
| Trauma | $3.2 | $1.2 | $2.0 | 166.9% |
| Orthobiologics | $13.8 | $15.4 | ($1.6) | (10.2%) |
| Total | $339.5 | $377.5 | ($38.0) | (10.1%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $125.2 | $160.0 | ($34.8) | (21.8%) |
| OUS | $23.8 | $34.6 | ($10.8) | (31.2%) |
| Total | $148.9 | $194.5 | ($45.6) | (23.4%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $283.6 | $307.5 | ($23.9) | (7.8%) |
| OUS | $55.9 | $70.0 | ($14.1) | (20.1%) |
| Total | $339.5 | $377.5 | ($38.0) | (10.1%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $148.9 | |
| Cost of Sales | $50.6 | 34% |
| R & D | $39.5 | 26.5% |
| Selling and Admin | $80.0 | 53.7% |
| Other | ($0.4) | (0.2%) |
| Net Earnings | ($20.8) | (14%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
