30 Day Trial
BARE BONES logo

BARE BONES content is posted to these pages in real time.

Monthly compilations are available in PDF form.

Product / Company Performance

Globus Up +12.2% in 2Q19 on Spine Implant Sales -

By Mike Evers, ORTHOWORLD

 

Globus Medical drove double-digit spine growth in 2Q19 while acquiring StelKast to enter the joint replacement market in 2020 via new robotic applications.

  • Acquired knee and hip implant manufacturer StelKast to leverage upcoming total joint applications for ExcelsiusGPS with an anticipated launch of late 2020
  • Leadership added $5MM to 2019 revenue guidance to account for the acquisition
  • Implant sales grew 12.2% but were offset somewhat by a corresponding double-digit decrease in sales revenue from ExcelsiusGPS placements
  • Continuing momentum for spine sales in the U.S. was augmented by strong performances in Japan, Spain, Italy and the U.K.
  • Leadership expects a slight deceleration in the second half due to the abatement of pent-up distributor demand
  • Launched the SI-LOK SELECT and a system for SI joint fusions within the quarter
  • The company is on track to launch an interbody module for ExcelsiusGPS and a spine deformity product in early 4Q
  • Launched the AUTOBAHN Tibial Nail and Femoral Nail systems for the growing trauma business


"We made this acquisition to get a product with a safety profile and history from which we can build and modify and
build into the robotic platform. So, the acquisition is obviously more about the product and the foundation
of a larger platform versus anything related to sales." 

– Globus Medical CFO Dan Scavilla on the acquisition of StelKast

 

Performance by Segment

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

  2Q19 2Q18 $ Chg % Chg
Joint Replacement * $1.3      
   Knees $0.8      
   Hips $0.5      
Spine $187.5 $168.8 $18.6 11.0%
Trauma $0.7 $0.1 $0.6 833.3%
Orthobiologics $5.1 $4.5 $0.6 14.3%
Total $194.5 $173.4 $21.2 12.2%
  1H19 1H18 $ Chg % Chg
Joint Replacement * $1.3      
   Knees $0.8      
   Hips $0.5      
Spine $365.0 $338.7 $26.3 7.8%
Trauma $1.2 $0.1 $1.1 775.9%
Orthobiologics $10.0 $9.0 $1.0 11.5%
Total $377.5 $347.8 $29.7 8.5%

* Acquired StelKast in 2Q19

 

Sales by Geographic Region

ORTHOWORLD estimates geographic sales and growth as follows ($MM):

  2Q19 2Q18 $ Chg % Chg
US $160.0 $145.4 $14.6 10.0%
Ex-US $34.6 $28.0 $6.5 23.4%
Total $194.5 $173.4 $21.2 12.2%

 

Net Earnings Data

Net earnings, inclusive of all revenue, are as follows.

  Amt % of Sales
Sales $194.5  
   Cost of Sales -$44.0 22.6%
   R & D -$15.7 8.1%
   Selling and Admin -$88.4 45.4%
   Other -$8.3 4.2%
Net Earnings $38.2 19.6%

 

Sources: Globus Medical; ORTHOWORLD estimates.

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

This article is a Member-only item of content. Members, please log in to read the complete post.
If you are not yet a Member, click here to learn more about purchasing ORTHOWORLD Membership.