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Globus Medical reported 3Q20 orthopedic revenue of USD $216.1 million, +10.1% vs. 3Q19. The company’s U.S. spinal implant business grew +17%, driven by new product introductions including the HEDRON line and new 3D-printed interbody spacers as well as pull through from ExcelusisGPS. Globus left some sales on the table due to lagging 3D-printing capacity, but the company expects additional capacity to come online by the end of the third quarter. Globus turned the corner in its biologics franchise after a long stretch of product disruption issues.
Revenue from ExcelsiusGPS improved sequentially from the second quarter, but fell -35% against a strong 3Q19 comparison. Per leadership, Globus sold more robots in October than it did in all of 3Q20. Territories for the company’s capital sales team tend to be large geographies requiring significant air travel and scheduled appointments with surgeons. These aspects of the business effectively shut down in the second quarter, and Globus found virtual events not as effective in building the pipeline.
The company expects its enabling technology segment to achieve positive growth in 4Q20 while also submitting its imaging system to FDA in November. The imaging system is expected to launch in 1Q21.
“Shutdowns are there in pockets. We’re not seeing that massive, across the board, shutdown of electives. They’re coming back much quicker as well. Our business grew in October. We had the best week of U.S. sales in our company history last week. In spite of these rolling shutdowns, the volumes out there are very strong. Those volumes, coupled with the fact that we’re growing as a company, produced results we continued to see into this week.” – 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
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2.7 | $2.5 | $0.2 | 6% |
| Knees | $1.5 | $1.5 | $0.0 | 2.5% |
| Hips | $1.1 | $1.0 | $0.1 | 11.3% |
| Spine | $202.5 | $184.9 | $17.6 | 9.5% |
| Trauma | $2.3 | $1.1 | $1.1 | 98% |
| Orthobiologics | $8.7 | $7.7 | $1.0 | 13.6% |
| Total | $216.1 | $196.2 | $19.9 | 10.1% |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $6.3 | $3.8 | $2.5 | 66.7% |
| Knees | $3.7 | $2.3 | $1.4 | 62.4% |
| Hips | $2.6 | $1.5 | $1.1 | 73% |
| Spine | $521.3 | $544.5 | ($23.2) | (4.3%) |
| Trauma | $5.5 | $2.3 | $3.1 | 133.3% |
| Orthobiologics | $22.5 | $23.1 | ($0.5) | (2.3%) |
| Total | $555.6 | $573.7 | ($18.1) | (3.2%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $182.1 | $162.7 | $19.4 | 11.9% |
| OUS | $34.0 | $33.5 | $0.5 | 1.4% |
| Total | $216.1 | $196.2 | $19.9 | 10.1% |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $465.7 | $470.2 | ($4.5) | (1%) |
| OUS | $89.9 | $103.5 | ($13.6) | (13.1%) |
| Total | $555.6 | $573.7 | ($18.1) | (3.2%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $216.1 | |
| Cost of Sales | $57.1 | 26.4% |
| R & D | $89.2 | 41.3% |
| Selling and Admin | $14.4 | 6.7% |
| Other | $11.2 | 5.2% |
| Net Earnings | $44.2 | 20.5% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Globus Medical reported 3Q20 orthopedic revenue of USD $216.1 million, +10.1% vs. 3Q19. The company’s U.S. spinal implant business grew +17%, driven by new product introductions including the HEDRON line and new 3D-printed interbody spacers as well as pull through from ExcelusisGPS. Globus left some sales on the table due to lagging...
Globus Medical reported 3Q20 orthopedic revenue of USD $216.1 million, +10.1% vs. 3Q19. The company’s U.S. spinal implant business grew +17%, driven by new product introductions including the HEDRON line and new 3D-printed interbody spacers as well as pull through from ExcelusisGPS. Globus left some sales on the table due to lagging 3D-printing capacity, but the company expects additional capacity to come online by the end of the third quarter. Globus turned the corner in its biologics franchise after a long stretch of product disruption issues.
Revenue from ExcelsiusGPS improved sequentially from the second quarter, but fell -35% against a strong 3Q19 comparison. Per leadership, Globus sold more robots in October than it did in all of 3Q20. Territories for the company’s capital sales team tend to be large geographies requiring significant air travel and scheduled appointments with surgeons. These aspects of the business effectively shut down in the second quarter, and Globus found virtual events not as effective in building the pipeline.
The company expects its enabling technology segment to achieve positive growth in 4Q20 while also submitting its imaging system to FDA in November. The imaging system is expected to launch in 1Q21.
“Shutdowns are there in pockets. We’re not seeing that massive, across the board, shutdown of electives. They’re coming back much quicker as well. Our business grew in October. We had the best week of U.S. sales in our company history last week. In spite of these rolling shutdowns, the volumes out there are very strong. Those volumes, coupled with the fact that we’re growing as a company, produced results we continued to see into this week.” – 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
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2.7 | $2.5 | $0.2 | 6% |
| Knees | $1.5 | $1.5 | $0.0 | 2.5% |
| Hips | $1.1 | $1.0 | $0.1 | 11.3% |
| Spine | $202.5 | $184.9 | $17.6 | 9.5% |
| Trauma | $2.3 | $1.1 | $1.1 | 98% |
| Orthobiologics | $8.7 | $7.7 | $1.0 | 13.6% |
| Total | $216.1 | $196.2 | $19.9 | 10.1% |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $6.3 | $3.8 | $2.5 | 66.7% |
| Knees | $3.7 | $2.3 | $1.4 | 62.4% |
| Hips | $2.6 | $1.5 | $1.1 | 73% |
| Spine | $521.3 | $544.5 | ($23.2) | (4.3%) |
| Trauma | $5.5 | $2.3 | $3.1 | 133.3% |
| Orthobiologics | $22.5 | $23.1 | ($0.5) | (2.3%) |
| Total | $555.6 | $573.7 | ($18.1) | (3.2%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $182.1 | $162.7 | $19.4 | 11.9% |
| OUS | $34.0 | $33.5 | $0.5 | 1.4% |
| Total | $216.1 | $196.2 | $19.9 | 10.1% |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $465.7 | $470.2 | ($4.5) | (1%) |
| OUS | $89.9 | $103.5 | ($13.6) | (13.1%) |
| Total | $555.6 | $573.7 | ($18.1) | (3.2%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $216.1 | |
| Cost of Sales | $57.1 | 26.4% |
| R & D | $89.2 | 41.3% |
| Selling and Admin | $14.4 | 6.7% |
| Other | $11.2 | 5.2% |
| Net Earnings | $44.2 | 20.5% |
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.
