Globus Medical Posts 2Q16 Revenue
Globus Medical (GMED) posted 2Q16 revenue of US $137MM, +3.1% vs. 2Q15. (U.S. $124.7MM, +2.7%, ex-U.S. $12.8MM, +5.7%) All growth is as reported.
ORTHOWORLD estimates 2Q16 segment revenue and as reported growth as follows.
- Spine $131.3MM, +3.0%
- Orthobiologics $6.2MM, +3.5%
GMED announced its intent to acquire the ex-U.S. operations and distribution channels of Alphatec Spine for $80MM in cash, plus a $30MM 5-year secured loan to ATEC. The transaction brings GMED access to the Japan market and doubles its international sales, citing a 3% share in the ex-U.S. market—a position that it states is unchanged after the acquisition.
For 2Q16, the company reported its Disruptive Technology segment growing at 10% on strong expandable technology, CREO MIS and biologics sales. Salesforce expansion challenges continued from 1Q into 2Q16, contributing to a -3% decline in Innovative Fusion sales. Leadership expects to regain salesforce growth momentum in 2H16.
The company remains on track to grow in-house manufacturing capacity to 50% by 2018.
In light of the anticipated ATEC acquisition, GMED revised 2016 guidance to $575MM. ATEC ex-U.S. is expected to contribute $10MM to 2016 sales.
Sources: Globus Medical, Inc.; ORTHOWORLD Inc.