08.12.22
Rank: #8 (Last year: #8)
$958 Million
Prior Fiscal: $789 Million
Percentage Change: +21.4%
R&D Expenditure: $97.3M
Best FY21 Quarter: Q2 $251M
Latest Quarter: Q1 $231M
No. of Employees: 2,400
Global Headquarters: Audubon, Pa.
KEY EXECUTIVES:
David C. Paul, Executive Chairman
Daniel Scavilla, President and CEO
Keith Pfeil, Sr. VP, CFO
Kelly G. Huller, Esq., Sr. VP, General Counsel, and Corporate Secretary
In October, Globus Medical filed a lawsuit in Delaware against Life Spine, alleging the company infringed on seven different Globus expandable interbody spacer technology patents. The action involved a number of products manufactured by Life Spine, as well as marketed by them and other companies.
“We’ve invested tremendous effort and millions of dollars in research and development to create innovative technology to improve the lives of patients, generating over 256 patents related to expandable interbody implants alone,” then-CEO Dave Demski told the press. “Our intellectual property is a critical component in making such advancements possible, and we are committed to protecting our proprietary technology against companies that benefit from making and distributing infringing devices.”
Life Spine responded to the allegations a few days later, with CEO Michael Butler claiming they would “vigorously fight” the allegations. Life Spine called the suit a “meritless patent lawsuit” and an effort to slow Life Spine’s growth. Nothing new has come to light since the announcement in October.
Globus was one of the few ortho-focused companies that grew its revenue in 2020—though minimally—and the company posted substantial gains to keep growing in its 2021 fiscal. The company captured $958.1 million of revenue last year, rising 21.4% over the year prior.
Domestic revenue grew 23.3% to reach $819.5 million last year. The company noted increased spine product sales here resulting from penetration in existing territories, as well as a higher sales volume of enabling technologies. U.S. sales make up most of Globus’ income—international sales, however, also grew. International revenue rose 11.2%, coming to rest at $138.5 million. The same market trends affecting the U.S. were at play here last year.
Musculoskeletal Solutions proceeds rose 17.1% to accrue $876.7 million in the company’s 2021 fiscal.
The CREO ONE robotic screw hit the market last April. Designed for spine surgery with ExcelsiusGPS robotic navigation, it simplifies pedicle preparation and touts increased pullout strength of 86% compared to traditional pedicle screws, according to Globus.
“The screw completely eliminates the need to tap and simply requires a starting, pilot hole to break the cortex prior to placing the vertebral pedicle screw, further streamlining the operative workflow while increasing screw pullout strength,” said Dr. Frank La Marca, neurosurgeon in Jackson, Mich. “The awl-style tip helps the screw follow a pre-planned trajectory and gives me the confidence of maintained navigational accuracy without performing traditional pedicle preparation.”
October’s Orthopaedic Trauma Association meeting saw the premiere of the ANTHEM mini fragment fracture system. Designed for fixation of small bones and non-load-bearing stabilization of long bones, it features both titanium and stainless steel implants with eight plate styles, including K-plates and mesh plates in many sizes. The plates accommodate a variety of anatomies and fracture patterns, and have 30o polyaxial locking. They’re also compatible with locking, non-locking, and self-drilling speed screws for quick unicortical fixation.
Enabling Technologies contributed $81.3 million to the company’s wallet. Revenue from this segment almost exactly doubled from 2020 to 2021, growing an impressive 100.1%.
The company’s Excelsius3D 3-in-1 imaging system was granted U.S. Food and Drug Administration (FDA) 510(k) clearance last August. It consolidates 360° cone-beam CT, fluoroscopy, and high-resolution digital radiography into one system. Excelsius3D does not have a separate viewing station—the standalone imaging unit has a more compact footprint than its predecessors. The system is indicated for use where a physician benefits from 2D and 3D information on anatomic structures and high contrast objects with high x-ray attenuation such as bony anatomy and metallic objects. It was commercially released in the fourth quarter of last year.
The ExcelsiusGPS robotic navigation system achieved a couple of milestones last year. The first came in July, when Globus marked over 20,000 spine procedures performed using the robotic platform. The second came in September, when the system accomplished its first ever robot-assisted, navigated deep brain stimulation (DBS). Cranial Solutions was the latest evolution of the system, transforming it into a two-in-one application system.
“This platform has been designed by surgeons in collaboration with engineers,” Dr. Francisco Ponce of Barrow Neurological Institute, who was the surgeon to perform the procedure, said to the press. “It is very intuitive and eliminates the need for the standard arc and frame in the procedure which significantly improves OR efficiency and removes one aspect of potential human error from the procedure.”
During the company’s Q3 earnings call, then-CEO Dave Demski revealed the acquisition of Michigan-based Capstone Surgical Technologies. Capstone added to Globus, portfolio—for a price tag of $24.5 million—a patented surgical drill with oscillating technology to accomplish bone removal, disk removal, and screw insertion for minimally invasive spine surgery. Demski said Globus plans to incorporate the safe, efficient tissue removal capability into the company’s robotic platforms in the future.
In the fourth quarter of 2021, Globus also acquired an undisclosed company for $10 million that develops technology for robotic surgery platforms. This purchase wasn’t considered material to last year’s consolidated financial statements.
There was a brief hullabaloo in November when both Bloomberg and Reuters reported that Globus approached fellow spine tech maker NuVasive with an acquisition offer, according to “people familiar with the matter.” The anonymous sources said Globus made an indicative cash-and-stock offer for NuVasive in the weeks prior to the report. If the deal takes place, it would create one of the largest players in the spine market with 17% market share, according to Truist analysts Samuel Brodovsky and David Rescott.
However, the Truist analysts also though the deal unlikely at the time because Globus has a track record of bolt-on deals and growing organically. “We think that large orthopedic integrations can be messy, and a potential large integration could significantly disrupt this strategy,” Brodovsky and Rescott said.
Nearly five-year Globus CEO Dave Demski also announced he was parting ways with the firm this past April. He’s served the company in various roles since its 2003 founding, including CFO from 2003-2008, president and COO from 2008-2015, and president of emerging technologies until he began leading the company in 2017.
“It has been a privilege to be part of the executive leadership of Globus Medical since its inception, working with talented and dedicated team members for almost two decades to improve the lives of patients,” said Demski. “This departure allows me to pursue other opportunities with the confidence that I am leaving Globus in good hands and well positioned for the future.”
Daniel Scavilla, who was the company’s executive VP, chief commercial officer, and president of Trauma was elevated to the CEO position as a result.
$958 Million
Prior Fiscal: $789 Million
Percentage Change: +21.4%
R&D Expenditure: $97.3M
Best FY21 Quarter: Q2 $251M
Latest Quarter: Q1 $231M
No. of Employees: 2,400
Global Headquarters: Audubon, Pa.
KEY EXECUTIVES:
David C. Paul, Executive Chairman
Daniel Scavilla, President and CEO
Keith Pfeil, Sr. VP, CFO
Kelly G. Huller, Esq., Sr. VP, General Counsel, and Corporate Secretary
In October, Globus Medical filed a lawsuit in Delaware against Life Spine, alleging the company infringed on seven different Globus expandable interbody spacer technology patents. The action involved a number of products manufactured by Life Spine, as well as marketed by them and other companies.
“We’ve invested tremendous effort and millions of dollars in research and development to create innovative technology to improve the lives of patients, generating over 256 patents related to expandable interbody implants alone,” then-CEO Dave Demski told the press. “Our intellectual property is a critical component in making such advancements possible, and we are committed to protecting our proprietary technology against companies that benefit from making and distributing infringing devices.”
Life Spine responded to the allegations a few days later, with CEO Michael Butler claiming they would “vigorously fight” the allegations. Life Spine called the suit a “meritless patent lawsuit” and an effort to slow Life Spine’s growth. Nothing new has come to light since the announcement in October.
Globus was one of the few ortho-focused companies that grew its revenue in 2020—though minimally—and the company posted substantial gains to keep growing in its 2021 fiscal. The company captured $958.1 million of revenue last year, rising 21.4% over the year prior.
Domestic revenue grew 23.3% to reach $819.5 million last year. The company noted increased spine product sales here resulting from penetration in existing territories, as well as a higher sales volume of enabling technologies. U.S. sales make up most of Globus’ income—international sales, however, also grew. International revenue rose 11.2%, coming to rest at $138.5 million. The same market trends affecting the U.S. were at play here last year.
Musculoskeletal Solutions proceeds rose 17.1% to accrue $876.7 million in the company’s 2021 fiscal.
The CREO ONE robotic screw hit the market last April. Designed for spine surgery with ExcelsiusGPS robotic navigation, it simplifies pedicle preparation and touts increased pullout strength of 86% compared to traditional pedicle screws, according to Globus.
“The screw completely eliminates the need to tap and simply requires a starting, pilot hole to break the cortex prior to placing the vertebral pedicle screw, further streamlining the operative workflow while increasing screw pullout strength,” said Dr. Frank La Marca, neurosurgeon in Jackson, Mich. “The awl-style tip helps the screw follow a pre-planned trajectory and gives me the confidence of maintained navigational accuracy without performing traditional pedicle preparation.”
October’s Orthopaedic Trauma Association meeting saw the premiere of the ANTHEM mini fragment fracture system. Designed for fixation of small bones and non-load-bearing stabilization of long bones, it features both titanium and stainless steel implants with eight plate styles, including K-plates and mesh plates in many sizes. The plates accommodate a variety of anatomies and fracture patterns, and have 30o polyaxial locking. They’re also compatible with locking, non-locking, and self-drilling speed screws for quick unicortical fixation.
Enabling Technologies contributed $81.3 million to the company’s wallet. Revenue from this segment almost exactly doubled from 2020 to 2021, growing an impressive 100.1%.
The company’s Excelsius3D 3-in-1 imaging system was granted U.S. Food and Drug Administration (FDA) 510(k) clearance last August. It consolidates 360° cone-beam CT, fluoroscopy, and high-resolution digital radiography into one system. Excelsius3D does not have a separate viewing station—the standalone imaging unit has a more compact footprint than its predecessors. The system is indicated for use where a physician benefits from 2D and 3D information on anatomic structures and high contrast objects with high x-ray attenuation such as bony anatomy and metallic objects. It was commercially released in the fourth quarter of last year.
The ExcelsiusGPS robotic navigation system achieved a couple of milestones last year. The first came in July, when Globus marked over 20,000 spine procedures performed using the robotic platform. The second came in September, when the system accomplished its first ever robot-assisted, navigated deep brain stimulation (DBS). Cranial Solutions was the latest evolution of the system, transforming it into a two-in-one application system.
“This platform has been designed by surgeons in collaboration with engineers,” Dr. Francisco Ponce of Barrow Neurological Institute, who was the surgeon to perform the procedure, said to the press. “It is very intuitive and eliminates the need for the standard arc and frame in the procedure which significantly improves OR efficiency and removes one aspect of potential human error from the procedure.”
During the company’s Q3 earnings call, then-CEO Dave Demski revealed the acquisition of Michigan-based Capstone Surgical Technologies. Capstone added to Globus, portfolio—for a price tag of $24.5 million—a patented surgical drill with oscillating technology to accomplish bone removal, disk removal, and screw insertion for minimally invasive spine surgery. Demski said Globus plans to incorporate the safe, efficient tissue removal capability into the company’s robotic platforms in the future.
In the fourth quarter of 2021, Globus also acquired an undisclosed company for $10 million that develops technology for robotic surgery platforms. This purchase wasn’t considered material to last year’s consolidated financial statements.
There was a brief hullabaloo in November when both Bloomberg and Reuters reported that Globus approached fellow spine tech maker NuVasive with an acquisition offer, according to “people familiar with the matter.” The anonymous sources said Globus made an indicative cash-and-stock offer for NuVasive in the weeks prior to the report. If the deal takes place, it would create one of the largest players in the spine market with 17% market share, according to Truist analysts Samuel Brodovsky and David Rescott.
However, the Truist analysts also though the deal unlikely at the time because Globus has a track record of bolt-on deals and growing organically. “We think that large orthopedic integrations can be messy, and a potential large integration could significantly disrupt this strategy,” Brodovsky and Rescott said.
Nearly five-year Globus CEO Dave Demski also announced he was parting ways with the firm this past April. He’s served the company in various roles since its 2003 founding, including CFO from 2003-2008, president and COO from 2008-2015, and president of emerging technologies until he began leading the company in 2017.
“It has been a privilege to be part of the executive leadership of Globus Medical since its inception, working with talented and dedicated team members for almost two decades to improve the lives of patients,” said Demski. “This departure allows me to pursue other opportunities with the confidence that I am leaving Globus in good hands and well positioned for the future.”
Daniel Scavilla, who was the company’s executive VP, chief commercial officer, and president of Trauma was elevated to the CEO position as a result.