At this rate, Globus Medical, Inc. will likely reach $2.5 billion in total revenue for the 12 months ending December 31, 2024…and earn around $250 million in operating profits.
Of course, these numbers include the results of the September 1, 2023, acquisition of NuVasive, Inc.
Here’s the tale of the tape:
Six Months Combined
The Globus and NuVasive field teams have now been combined for six months and, so far, so good. The profit rate is not as high as CEO Dan Scavilla or CFO Keith Pfeil would like: “Free cash flow was $26 million for the quarter, and adjusted EBITDA decreased 30% as we build our way back to the mid-30s range,” said Scavilla on his call with analysts.
But, the teams have been able to move four new products through channels in the June 2024 quarter and deliver essentially $630 million in sales. So far in 2024, Globus has rolled out nine new products. If management keeps the pace up, total new launches in 2024 could hit a record.
Top performing product categories were expendables, biologics, MIS screws, and the Simplify Cervical Disc.
What to Expect at NASS’s September 25th Annual Meeting
Globus’s key launches this year, which will almost certainly be featured at their booth at NASS are:
- The Revel-S is an expandable stand-alone ACDF spacer system
- HILINE is a versatile posterior band fixation system for the cervical and thoracolumbar spine
- The XLIF prone system
- AUTOBAHN Pro instruments and Digital Targeting System
Finally, Globus reported that their total joint arthroplasty product line received five new FDA 10-k clearances in the first six months of 2024. Most notably, is the clearance for the Excelsius Flex robotic navigation platform which is intended to pair with Globus’s ExcelsiusFlex TKA, a total knee arthroplasty system.
Wall Street’s Take
Wall Street summarized Globus’s June performance in four words; “Not Missing a Beat.” Wells Fargo’s analyst, Vic Chopra, upgraded his opinion to “Overweight.”
