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Globus Medical reported 1Q22 orthopedic sales of $230.5 million, +1.4% compared to 1Q21.
The modest growth resulted from COVID headwinds, a difficult prior-year comparison and a slow-developing capital sales pipeline. Globus leaders said hospitals shifted focus to managing COVID cases and staffing shortages. Despite the temporary sales slowdown, Globus’ robotic procedures grew +27% in the quarter and surpassed 31,000 total cases since launch.
The company’s Excelsius 3D imaging system launched in May and will help spur growth in the second half of the year. Globus expects to launch its joint reconstruction robot and expanded portfolio in 2023, with a potential hiring push for that business in late 2022.
Joint replacement and trauma are likely targets for a more acquisitive Globus Medical in 2022. Company CFO Keith Pfeil said, “We’re looking at our Ortho portfolio. From a spine perspective, we’re looking at some small companies with R&D that is not fully developed yet. Those are the places that you would think about us looking to do acquisitions.”
Despite the slow start, Globus reaffirmed its 2022 guidance of $1.025 billion in net sales.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3.3 | $2.8 | $0.5 | 17.1% |
| Knees | $1.9 | $1.7 | $0.2 | 14.2% |
| Hips | $1.4 | $1.1 | $0.2 | 21.5% |
| Spine | $214.1 | $213.1 | $1.0 | 0.5% |
| Trauma | $4.0 | $2.5 | $1.5 | 61% |
| Orthobiologics | $9.1 | $8.9 | $0.2 | 2.3% |
| Total | $230.5 | $227.3 | $3.2 | 1.4% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $196.4 | $193.3 | $3.1 | 1.6% |
| OUS | $34.1 | $34.0 | $0.1 | 0.3% |
| Total | $230.5 | $227.3 | $3.2 | 1.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $230.5 | |
| Cost of Sales | $59.2 | 25.7% |
| R & D | $17.4 | 7.6% |
| Selling and Admin | $100.7 | 43.7% |
| Other | $25.5 | 11.1% |
| Net Earnings | $27.7 | 12% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Globus Medical reported 1Q22 orthopedic sales of $230.5 million, +1.4% compared to 1Q21.
The modest growth resulted from COVID headwinds, a difficult prior-year comparison and a slow-developing capital sales pipeline. Globus leaders said hospitals shifted focus to managing COVID cases and staffing shortages. Despite the temporary sales...
Globus Medical reported 1Q22 orthopedic sales of $230.5 million, +1.4% compared to 1Q21.
The modest growth resulted from COVID headwinds, a difficult prior-year comparison and a slow-developing capital sales pipeline. Globus leaders said hospitals shifted focus to managing COVID cases and staffing shortages. Despite the temporary sales slowdown, Globus’ robotic procedures grew +27% in the quarter and surpassed 31,000 total cases since launch.
The company’s Excelsius 3D imaging system launched in May and will help spur growth in the second half of the year. Globus expects to launch its joint reconstruction robot and expanded portfolio in 2023, with a potential hiring push for that business in late 2022.
Joint replacement and trauma are likely targets for a more acquisitive Globus Medical in 2022. Company CFO Keith Pfeil said, “We’re looking at our Ortho portfolio. From a spine perspective, we’re looking at some small companies with R&D that is not fully developed yet. Those are the places that you would think about us looking to do acquisitions.”
Despite the slow start, Globus reaffirmed its 2022 guidance of $1.025 billion in net sales.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3.3 | $2.8 | $0.5 | 17.1% |
| Knees | $1.9 | $1.7 | $0.2 | 14.2% |
| Hips | $1.4 | $1.1 | $0.2 | 21.5% |
| Spine | $214.1 | $213.1 | $1.0 | 0.5% |
| Trauma | $4.0 | $2.5 | $1.5 | 61% |
| Orthobiologics | $9.1 | $8.9 | $0.2 | 2.3% |
| Total | $230.5 | $227.3 | $3.2 | 1.4% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $196.4 | $193.3 | $3.1 | 1.6% |
| OUS | $34.1 | $34.0 | $0.1 | 0.3% |
| Total | $230.5 | $227.3 | $3.2 | 1.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $230.5 | |
| Cost of Sales | $59.2 | 25.7% |
| R & D | $17.4 | 7.6% |
| Selling and Admin | $100.7 | 43.7% |
| Other | $25.5 | 11.1% |
| Net Earnings | $27.7 | 12% |
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.
