08.17.21
Rank: #8 (Last year: #8)
$789 Million
Prior Fiscal: $785 Million
Percentage Change: +0.5%
No. of Employees: 2,200
Global Headquarters: Audubon, Pa.
KEY EXECUTIVES:
David C. Paul, Executive Chairman
David M. Demski, President and CEO
Keith Pfeil, Sr. VP, CFO
Daniel Scavilla, Exec. VP, Chief Commercial Officer, and President, Trauma
Kelly G. Huller, Esq., Sr. VP, General Counsel
For many medical device companies, especially those that provided products used in elective surgeries, Q2 2020 was going to represent a revenue shortfall. This fact was especially true of many companies on the ODT Top Companies list, as much of their focus is on the orthopedic industry. As most orthopedic procedures are considered elective surgeries, the pause was especially damaging to the bottom line of those firms.
With this in mind, it was especially surprising to see shares of Globus Medical increasing by almost 14 percent in early August after the company provided its second-quarter results. As expected, the organization saw a loss during the three-month period (down 23.4 percent year over year for that quarter). However, in a statement put out by the company regarding its Q2 results, the CEO for Globus Medical, Dave Demski, explained the losses as “an exceptional result when compared to our peers within the industry.”
“We are highly encouraged by the rebound in spine procedures in the U.S.,” Demski went on to explain. “The spine business in the U.S. bottomed in mid-April, but rebounded to produce double digit growth in June, which has accelerated into the mid-teens growth in July. Interest in robotic technology has remained high and we were able to close several deals in June and July. We are excited about the second half of 2020: Globus is poised for robust growth if the recent trends continue; and, if we do experience further disruption, our lean organization structure and strong liquidity will position us to weather the storm effectively.”
By the time Globus put out its 2020 annual report, which provided insights on the overall impact the pandemic had on the firm, Demski’s words rang true. The organization finished with a modest 0.5 percent increase year over year compared to its 2019 fiscal. That was reflected in growth from $785 million in 2019 to $789 million in 2020.
Globus Medical reports on two product segments—Musculoskeletal Solutions and Enabling Technologies. Musculoskeletal Solutions, which consist primarily of implantable devices, biologics, accessories, and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures, is the primary source for Globus Medical’s revenue. It reported $748 million in 2020, which was up from 2019’s $738 million.
The Enabling Technologies segment is comprised of imaging, navigation, and robotics solutions for assisted surgery. The division is substantially smaller as a source of revenue for Globus Medical. In 2020, the segment contributed $40.6 million, which was a decrease from the previous year’s tally of $47 million.
Sales region had a similar disparity, but not as dramatic. The majority of Globus Medical sales occur within the U.S., which represented $664 million of the firm’s revenue in 2020. That was a 2.6 percent gain over the 2019 fiscal, which saw the figure at $648 million. Internationally, sales followed the overall industry trend for orthopedics, posting sales of $125 million in 2020, which represented 9.5 percent shrinkage when compared to 2019’s $138 million.
In addition to its promises kept regarding the recovery from pandemic losses, Globus Medical also moved forward with efforts to spur future growth. This was accomplished in a number of ways. One method saw the organization awarded a group purchasing agreement with Premier—one of the largest group purchasing organizations in the U.S.—for a number of its trauma products. The agreement specifically included the company’s ANTHEM Plating, AUTOBAHN Nailing, ARBOR External Fixation, and CAPTIVATE Screw Platforms.
The firm also announced continued advancements with its ExcelsiusGPS robotic surgical solution in November 2020.
Dr. Sheeraz Qureshi (Hospital for Special Surgery, New York, N.Y.) and Dr. Paul Park (University of Michigan, Ann Arbor, Mich.) were the first surgeons to utilize the ExcelsiusGPS Interbody Solutions module. Dr. Qureshi performed a robotic navigated transforaminal lumbar interbody (TLIF) fusion and Dr. Park executed a robotic navigated single position lateral interbody fusion procedure, both using the ExcelsiusGPS robotic navigation system.
Dr. Park remarked, “The advanced planning and ability of the robot to impact surgery beyond screw placement makes Interbody Solutions the next step forward in the evolution of robotic spinal surgery.”
“I am very excited for the newest evolution of the ExcelsiusGPS platform,” said Dr. Qureshi. “This update provides advanced solutions for interbody placement using a robotic navigation platform that do not currently exist.”
In other clinical news, Globus Medical announced Dr. Joshua S. Rovner became the first spine surgeon to implant.
HEDRON IA, a 3D printed integrated ALIF spacer that leverages anchors or screws for vertebral body fixation. The minimally invasive outpatient procedure was performed at Englewood Health, one of New Jersey’s leading hospitals and healthcare networks.
“Offering my patients the benefits of smaller incisions and less exposure to potential complications is why I specialize in minimally invasive surgery,” said Dr. Rovner. “For the ALIF procedure, I require an implant that’s easy to insert yet provides a sturdy construct. HEDRON delivered with the additional benefit of endplate-to-endplate porosity to promote fusion.”
HEDRON spacers feature a biomimetic porous scaffold designed to promote bone formation onto and through the implant. Unlike first generation 3D printed implants, HEDRON strikes the optimal balance of strength and porosity through a sturdy frame and a pore size distribution similar to trabecular bone.
To support its future growth for innovative products similar to the two first used in 2020, the company announced an expansion of its manufacturing operations to Montgomery County in Pennsylvania. Gov. Tom Wolf made the announcement in September 2020 when he explained the expansion would result in more than 240 jobs.
“Globus Medical has an established presence in our state and has worked with the commonwealth for years in their growth and expansion—starting with only four employees in 2003,” said Gov. Wolf. “With this manufacturing operation expansion, their workforce will grow substantially, and will build upon their continued commitment to bringing new jobs and opportunities to southeast Pennsylvania.”
Globus Medical also acquired Synoste, a company that produced implants for minimally invasive bone lengthening treatments. Leg length discrepancy can lead to chronic back pain and osteoarthritis in the long term. Using Synoste’s technology, the bone of the shorter leg is lengthened in a gentle way over a period of several months. The deal was for $23.5 million and completed through the firm’s subsidiary, Globus Medical Ireland Ltd.
$789 Million
Prior Fiscal: $785 Million
Percentage Change: +0.5%
No. of Employees: 2,200
Global Headquarters: Audubon, Pa.
KEY EXECUTIVES:
David C. Paul, Executive Chairman
David M. Demski, President and CEO
Keith Pfeil, Sr. VP, CFO
Daniel Scavilla, Exec. VP, Chief Commercial Officer, and President, Trauma
Kelly G. Huller, Esq., Sr. VP, General Counsel
For many medical device companies, especially those that provided products used in elective surgeries, Q2 2020 was going to represent a revenue shortfall. This fact was especially true of many companies on the ODT Top Companies list, as much of their focus is on the orthopedic industry. As most orthopedic procedures are considered elective surgeries, the pause was especially damaging to the bottom line of those firms.
With this in mind, it was especially surprising to see shares of Globus Medical increasing by almost 14 percent in early August after the company provided its second-quarter results. As expected, the organization saw a loss during the three-month period (down 23.4 percent year over year for that quarter). However, in a statement put out by the company regarding its Q2 results, the CEO for Globus Medical, Dave Demski, explained the losses as “an exceptional result when compared to our peers within the industry.”
“We are highly encouraged by the rebound in spine procedures in the U.S.,” Demski went on to explain. “The spine business in the U.S. bottomed in mid-April, but rebounded to produce double digit growth in June, which has accelerated into the mid-teens growth in July. Interest in robotic technology has remained high and we were able to close several deals in June and July. We are excited about the second half of 2020: Globus is poised for robust growth if the recent trends continue; and, if we do experience further disruption, our lean organization structure and strong liquidity will position us to weather the storm effectively.”
By the time Globus put out its 2020 annual report, which provided insights on the overall impact the pandemic had on the firm, Demski’s words rang true. The organization finished with a modest 0.5 percent increase year over year compared to its 2019 fiscal. That was reflected in growth from $785 million in 2019 to $789 million in 2020.
Globus Medical reports on two product segments—Musculoskeletal Solutions and Enabling Technologies. Musculoskeletal Solutions, which consist primarily of implantable devices, biologics, accessories, and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures, is the primary source for Globus Medical’s revenue. It reported $748 million in 2020, which was up from 2019’s $738 million.
The Enabling Technologies segment is comprised of imaging, navigation, and robotics solutions for assisted surgery. The division is substantially smaller as a source of revenue for Globus Medical. In 2020, the segment contributed $40.6 million, which was a decrease from the previous year’s tally of $47 million.
Sales region had a similar disparity, but not as dramatic. The majority of Globus Medical sales occur within the U.S., which represented $664 million of the firm’s revenue in 2020. That was a 2.6 percent gain over the 2019 fiscal, which saw the figure at $648 million. Internationally, sales followed the overall industry trend for orthopedics, posting sales of $125 million in 2020, which represented 9.5 percent shrinkage when compared to 2019’s $138 million.
In addition to its promises kept regarding the recovery from pandemic losses, Globus Medical also moved forward with efforts to spur future growth. This was accomplished in a number of ways. One method saw the organization awarded a group purchasing agreement with Premier—one of the largest group purchasing organizations in the U.S.—for a number of its trauma products. The agreement specifically included the company’s ANTHEM Plating, AUTOBAHN Nailing, ARBOR External Fixation, and CAPTIVATE Screw Platforms.
The firm also announced continued advancements with its ExcelsiusGPS robotic surgical solution in November 2020.
Dr. Sheeraz Qureshi (Hospital for Special Surgery, New York, N.Y.) and Dr. Paul Park (University of Michigan, Ann Arbor, Mich.) were the first surgeons to utilize the ExcelsiusGPS Interbody Solutions module. Dr. Qureshi performed a robotic navigated transforaminal lumbar interbody (TLIF) fusion and Dr. Park executed a robotic navigated single position lateral interbody fusion procedure, both using the ExcelsiusGPS robotic navigation system.
Dr. Park remarked, “The advanced planning and ability of the robot to impact surgery beyond screw placement makes Interbody Solutions the next step forward in the evolution of robotic spinal surgery.”
“I am very excited for the newest evolution of the ExcelsiusGPS platform,” said Dr. Qureshi. “This update provides advanced solutions for interbody placement using a robotic navigation platform that do not currently exist.”
In other clinical news, Globus Medical announced Dr. Joshua S. Rovner became the first spine surgeon to implant.
HEDRON IA, a 3D printed integrated ALIF spacer that leverages anchors or screws for vertebral body fixation. The minimally invasive outpatient procedure was performed at Englewood Health, one of New Jersey’s leading hospitals and healthcare networks.
“Offering my patients the benefits of smaller incisions and less exposure to potential complications is why I specialize in minimally invasive surgery,” said Dr. Rovner. “For the ALIF procedure, I require an implant that’s easy to insert yet provides a sturdy construct. HEDRON delivered with the additional benefit of endplate-to-endplate porosity to promote fusion.”
HEDRON spacers feature a biomimetic porous scaffold designed to promote bone formation onto and through the implant. Unlike first generation 3D printed implants, HEDRON strikes the optimal balance of strength and porosity through a sturdy frame and a pore size distribution similar to trabecular bone.
To support its future growth for innovative products similar to the two first used in 2020, the company announced an expansion of its manufacturing operations to Montgomery County in Pennsylvania. Gov. Tom Wolf made the announcement in September 2020 when he explained the expansion would result in more than 240 jobs.
“Globus Medical has an established presence in our state and has worked with the commonwealth for years in their growth and expansion—starting with only four employees in 2003,” said Gov. Wolf. “With this manufacturing operation expansion, their workforce will grow substantially, and will build upon their continued commitment to bringing new jobs and opportunities to southeast Pennsylvania.”
Globus Medical also acquired Synoste, a company that produced implants for minimally invasive bone lengthening treatments. Leg length discrepancy can lead to chronic back pain and osteoarthritis in the long term. Using Synoste’s technology, the bone of the shorter leg is lengthened in a gentle way over a period of several months. The deal was for $23.5 million and completed through the firm’s subsidiary, Globus Medical Ireland Ltd.