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Product / Company Performance

Globus Medical Posts 1Q18 Revenue -

Globus Medical (GMED) reported 1Q18 revenue of US $174.4MM, +11.9% vs. 1Q17.

ORTHOWORLD estimates for segment growth follow.

  1Q18  1Q17  $ Change  % Change 
 Spine $166.5  $148.2  $18.3  12.3% 
 Orthobiologics $7.9  $7.6  $0.3  3.9% 
Total  $174.4  $155.8  $18.6  11.9% 

Growth drivers in the U.S. included CREO, CREO MIS, biologics and expandable interbodies. The company is starting to see pull-through in devices by surgeons who have converted to GMED implants upon using the ExcelsiusGPS robotics/navigation system.

Ex-U.S., investments in sets and people in Japan continue to pay off, and significant improvements were mentioned in Australia, German, Italy and Spain.

GMED now reports two categories: Spine and Emerging Technologies. The former comprises traditional interbody fusion, MIS, motion preservation, biologics and interventional pain management, while the latter consists of imaging, navigational and robotic technologies and, once they launch, orthopaedic trauma products.

$12.8MM in 1Q Emerging Tech revenue was primarily attributed to ExcelsiusGPS; trauma products are slated for limited launch in 2Q. (GMED is building out sets and hiring sales reps, and is about 50% of the way to completion, which is expected in 4Q.) Analysts believe that GMED sold about 12 robotic systems in the quarter (While GMED does market the system ex-U.S., it has not yet placed any units there.)

New indications and FDA approvals are expected for Excelsius in 2H18—possibly at least one by NASS. The company is exploring approvals for discectomy, decompression and rod placement, outside of current pedicle screw placement.

Finally, GMED has raised its full-year guidance by $5MM to $695MM, based on increased uptake of the robotic system, which has attracted strong interest. In a management meeting hosted by Wells Fargo following the earnings call, analysts learned that GMED’s #1 and #2 largest users previously used NuVasive implants. Also, the company is seeing demand from outpatient and ASCs, which was not initially planned. Per analyst notes, GMED management things 250 annual placements isn’t unreasonable. Competition among spinal robotic and navigation systems is sure to rule the week, at NASS 2018.

Sources: Globus Medical, Inc.; ORTHOWORLD estimates

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