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Globus Medical reported 4Q19 orthopedic revenue of USD $211.7 million, +8% vs. 4Q18, with full-year 2019 revenue of $785.4 million, +10.2% vs. 2018. Despite supply issues in orthobiologics and flat enabling technology sales, Globus recorded record revenues in 4Q19 en route to notching its third consecutive year of double-digit growth. The company also marked its third consecutive year of record recruiting and onboarding of competitive reps.
In 2019, Globus launched 11 spine products including three in the fourth quarter: the HEDRON 3D-printed interbody spacer, the HEDRON IC integrated cervical plate and spacer system and the HEDRON IA integrated lumbar plate and spacer system. Six new trauma systems launched in 2019, but the company is taking the long view in building that segment. Globus’ orthobiologics sales were undercut by halted production of their stem cell products and lack of overall market supply for amnion. The company believes 2020 will bring gradual improvement as they rebuild customer relationships for accounts that moved to other products.
While sales of enabling technology were flat for the year, the company maintained a positive trajectory following its low point in 1Q19 when sales declined -44% vs. 1Q18. Additionally, Globus received approval to market ExcelsiusGPS in Japan and expects to begin selling units there in 2H20. An interbody module for ExcelsiusGPS will begin rolling out in 1Q20. In 2Q20, Globus will submit both a cranial module and imaging system for FDA clearance.
“We’ve always said this is a longer journey with trauma. It’s about growth year on year, quarter on quarter, not an explosion like we saw with robots. I wouldn’t call 2020 the pivotal year of significant change, but rather one step along a journey as we grow this to be something equal to the size of spine over time.” – Daniel Scavilla, Globus Medical Executive Vice President and Chief Commercial Officer
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
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2.5 | |||
| Knees | $1.5 | |||
| Hips | $1.0 | |||
| Spine | $200.5 | $186.5 | $14.0 | 7.5% |
| Trauma | $1.0 | $0.4 | $0.6 | 157.8% |
| Orthobiologics | $7.7 | $9.1 | ($1.4) | (15.1%) |
| Total | $211.7 | $195.9 | $15.7 | 8% |
| FY 19 | FY 18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $6.3 | |||
| Knees | $3.8 | |||
| Hips | $2.5 | |||
| Spine | $744.5 | $678.9 | $65.6 | 9.7% |
| Trauma | $3.9 | $0.8 | $3.1 | 406.5% |
| Orthobiologics | $30.8 | $33.3 | ($2.5) | (7.6%) |
| Total | $785.4 | $713.0 | $72.4 | 10.2% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $177.5 | $163.8 | $13.7 | 8.3% |
| Ex-US | $34.2 | $32.2 | $2.1 | 6.4% |
| Total | $211.7 | $195.9 | $15.7 | 8% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $211.7 | |
| Cost of Sales | ($48.8) | 23.1% |
| R & D | ($15.5) | 7.3% |
| Selling and Admin | ($92.1) | 43.5% |
| Other | ($9.7) | 4.6% |
| Net Earnings | $45.5 | 21.5% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Globus Medical reported 4Q19 orthopedic revenue of USD $211.7 million, +8% vs. 4Q18, with full-year 2019 revenue of $785.4 million, +10.2% vs. 2018. Despite supply issues in orthobiologics and flat enabling technology sales, Globus recorded record revenues in 4Q19 en route to notching its third consecutive year of double-digit growth. The...
Globus Medical reported 4Q19 orthopedic revenue of USD $211.7 million, +8% vs. 4Q18, with full-year 2019 revenue of $785.4 million, +10.2% vs. 2018. Despite supply issues in orthobiologics and flat enabling technology sales, Globus recorded record revenues in 4Q19 en route to notching its third consecutive year of double-digit growth. The company also marked its third consecutive year of record recruiting and onboarding of competitive reps.
In 2019, Globus launched 11 spine products including three in the fourth quarter: the HEDRON 3D-printed interbody spacer, the HEDRON IC integrated cervical plate and spacer system and the HEDRON IA integrated lumbar plate and spacer system. Six new trauma systems launched in 2019, but the company is taking the long view in building that segment. Globus’ orthobiologics sales were undercut by halted production of their stem cell products and lack of overall market supply for amnion. The company believes 2020 will bring gradual improvement as they rebuild customer relationships for accounts that moved to other products.
While sales of enabling technology were flat for the year, the company maintained a positive trajectory following its low point in 1Q19 when sales declined -44% vs. 1Q18. Additionally, Globus received approval to market ExcelsiusGPS in Japan and expects to begin selling units there in 2H20. An interbody module for ExcelsiusGPS will begin rolling out in 1Q20. In 2Q20, Globus will submit both a cranial module and imaging system for FDA clearance.
“We’ve always said this is a longer journey with trauma. It’s about growth year on year, quarter on quarter, not an explosion like we saw with robots. I wouldn’t call 2020 the pivotal year of significant change, but rather one step along a journey as we grow this to be something equal to the size of spine over time.” – Daniel Scavilla, Globus Medical Executive Vice President and Chief Commercial Officer
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
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2.5 | |||
| Knees | $1.5 | |||
| Hips | $1.0 | |||
| Spine | $200.5 | $186.5 | $14.0 | 7.5% |
| Trauma | $1.0 | $0.4 | $0.6 | 157.8% |
| Orthobiologics | $7.7 | $9.1 | ($1.4) | (15.1%) |
| Total | $211.7 | $195.9 | $15.7 | 8% |
| FY 19 | FY 18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $6.3 | |||
| Knees | $3.8 | |||
| Hips | $2.5 | |||
| Spine | $744.5 | $678.9 | $65.6 | 9.7% |
| Trauma | $3.9 | $0.8 | $3.1 | 406.5% |
| Orthobiologics | $30.8 | $33.3 | ($2.5) | (7.6%) |
| Total | $785.4 | $713.0 | $72.4 | 10.2% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $177.5 | $163.8 | $13.7 | 8.3% |
| Ex-US | $34.2 | $32.2 | $2.1 | 6.4% |
| Total | $211.7 | $195.9 | $15.7 | 8% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $211.7 | |
| Cost of Sales | ($48.8) | 23.1% |
| R & D | ($15.5) | 7.3% |
| Selling and Admin | ($92.1) | 43.5% |
| Other | ($9.7) | 4.6% |
| Net Earnings | $45.5 | 21.5% |
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.
