Globus Medical Inc.

Status: Privately held, venture-backed
Location: Audubon, Pa.
Leadership: David Paul, Chairman and CEO
Sector: Minimally invasive spinal implants
Online: www.globusmedical.com

‘Largest, Fastest’ Globus is on the Move

Billing itself both as the world’s largest privately held spinal company and as the fastest-growing company in the history of orthopedics, Globus Medical Inc., certainly pushes our envelope as an emerging company, but it clearly is one to watch with its innovative suite of products for minimally invasive spinal surgery.

The company says its goal is to use its strengths in engineering and technology to help patients suffering from spinal disorders achieve pain-free and active lives, and it follows that path with a suite of more than 100 products, with another 30 or so in development. The company fits into categories including minimally invasive, motion preservation, cervical, intervertebral fusion, and thoracolumbar, along with biomaterials.

In February, Globus reported a settlement by the company and Chairman and CEO David Paul with the U.S. Food and Drug Administration (FDA) to resolve an administrative complaint alleging Food, Drug and Cosmetic Act violations regarding Globus’ former product, NuBone. The complaint involved no patient safety issues regarding the product, nor did the amended complaint allege any intentional wrongdoing by Globus Medical or Paul.

Globus had considered NuBone to be minimally manipulated tissue exempt from premarket notification, but in March 2008 the FDA’s Tissue Reference Group determined that NuBone required 510(k) clearance. Two subsequent 510(k) submissions with substantial animal data followed, but Globus decided to discontinue NuBone in 2010.

A key executive hire at the beginning of this year brought Richard Baron as senior vice president and CFO. Prior to joining Globus, Baron served as vice president of finance and CFO for Avid Radiopharmaceuticals Inc., ERT, Animas Corp., Genex Services Inc., and Marsam Pharmaceuticals Inc. Previously, he spent 10 years in various finance and accounting positions.

In January 2011, Globus acquired substantially all of the assets of Facet Solutions Inc. of Hopkinton, Mass. Facet Solutions is a developer of facet arthroplasty devices. Its cornerstone product is Acadia, an unconstrained pedicle screw-based total facet replacement system whose first indication is for symptomatic spinal stenosis. The acquisition supplements Globus’ posterior motion sparing technology platform. Facet acquired certain assets of Archus Orthopaedics in 2009, including an intellectual property portfolio of more than 100 patents and patent applications concentrated on posterior motion preservation technology. “Combined, this creates the strongest intellectual property portfolio in this segment and a platform product that will allow Globus to address a multitude of clinical indications and treatment scenarios in the future,” Paul said at the time of the Facet Solutions deal.

Among new products showcased by Globus at last fall’s North American Spine Society annual meeting in Chicago, Ill., were the minimally invasive Caliber vertically expandable lumbar fusion device, InterContinental Plate-Spacer for minimally invasive lateral fixation, SP-Fix spinous process fixation device, and Revere Corrective Osteotomy Set.

Another well-known and highly used Globus product is the Transition Stabilization System, a semi-rigid system for lumbar fusion incorporating the company’s SoftStop Technology and providing advanced lumbar stabilization. The Transition System includes hydroxyapatite-coated, multi-axial pedicle screws, PET (polyethylene terephthalate) cords, and PCU (polycarbonate urethane) spacers.
Globus may not be waving the “largest privately-held spinal company” flag much longer. The company, which raised $110 million in a Series E financing round led by Clarus Ventures, has filed for an initial public offering of $150 million, but as of late July had not set a date for the IPO.