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Product / Company Performance

Globus Medical Reports 1Q19 Revenue of $182.9MM, +4.9% vs. 1Q18 -

By Mike Evers, ORTHOWORLD

Globus Medical posts 1Q19 revenue of USD $182.9MM, +4.9% vs. 1Q18.

  • Spine sales driven by new products, implant pull through from ExcelsiusGPS and competitive reps coming off non-competes
  • Ex-U.S. sales driven by penetration into Japan, Spain, Italy and the U.K.
  • Trauma expected to contribute $5MM to $7M in revenue for 2019, with “meaningful” contributions coming in 2020
  • Launched Tibial Nail System for trauma within the quarter
  • Received an FDA warning letter for Texas-based tissue facility in late 2018, creating $3MMimpact for biologics in 1Q (expected to be resolved in 2H19)
  • ExcelsiusGPS placements generated $7.2MM for the quarter, down 43% from last year due to artificially high 1Q18 sales from pent-up demand and normal seasonal fluctuations for capital equipment
  • An interbody module for ExcelsiusGPS has been submitted to FDA for 510(k) clearance, and the company expects to soon unveil three additional modular platforms that will comprise the Smarter OR suite
  • Leadership has noticed that the selling cycle for robotics has elongated due to competitive entries; physicians are being asked to do comprehensive evaluations of all options before hospital executives commit to purchasing a technology

 

ORTHOWORLD estimates segment sales and growth on an as-reported basis as follows ($MM).

  1Q19 1Q18 $ Chg % Chg
Spine $176.9 $166.2 $10.7 6.4%
Trauma $1.2 $0.3 $0.9 287.1%
Orthobiologics $4.9 $7.9 -$3.0 -38.3%
Total $182.9 $174.4 $8.5 4.9%

Globus Medical’s revenue by geographic region is as follows ($MM).

Geographic Region 1Q19 1Q18 $ Chg % Chg
US $147.5 $145.6 $1.9 1.3%
Ex-US $35.4 $28.8 $6.6 23.0%
Total $182.9 $174.4 $8.5 4.9%

Net earnings are as follows.

1Q19 Amount ($MM) % of Sales
Sales $182.9  
   Cost of Sales -$41.8 22.9%
   R & D -$14.3 7.8%
   Selling and Admin -$85.8 46.9%
   Other -$7.8 4.3%
Net Earnings $33.2 18.2%

 

Sources: Globus Medical; ORTHOWORLD estimates.

Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.

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