The company will need to rebound in the second quarter to earn back investor confidence.

Amanda Pedersen

May 12, 2022

2 Min Read
In this image, the Globus Medical is shown on a smartphone screen with a larger version of the logo in the background out of
Image courtesy of SOPA Images Limited / Alamy Stock Photo

Investors and analysts are watching Globus Medical closely after the company's unexpected CEO change in April.

Ryan Zimmerman, a medtech analyst at BTIG, noted in a report this week that Globus had a weaker first quarter within the spine market than investors have seen in the past.

"For shares to recover, investors need to be confident that [the company] can rebound in 2Q," Zimmerman wrote.

And while Globus executives said one quarter does not make a trend, Zimmerman noted that spine is a competitive segment. Still, the analyst said BTIG holds its view that the company can rebound effectively in the second quarter.

To its credit, Globus is ramping up its hiring of competitive sales reps and rolling out 10 new spine products this year. The company also has about $1 billion in cash on the balance sheet that gives it flexibility to be acquisitive or reinvest organically, Zimmerman said.

David Saxon, a medtech analyst at Needham & Co., also expressed optimism for a quick rebound. He noted that Globus hadĀ a record month in March for its U.S. spine business and that the momentum continued into April.

The company threw investors and analysts a curveball a few weeks ago with the news that Dave Demski was stepping down from his post as president and CEO. The board promptly promoted Dan Scavilla to take Demski's place.

Scavilla said during the call that the company began shipping its Excelsius 3D imaging system in May and has successfully completed the first surgeries at several sites.

"SurgeonsĀ have said this is a game changer," Scavilla said.

Excelsius 3D is a three-in-one imaging platform offering three image modalities in the single cart with high maneuverability, a large field of view, and seamless integration with the company's ExcelsiusGPS Robotic Navigation System.

"It is a key component to realizing the Globus ecosystem in the operating room," Scavilla said. "Market interest is high on the state-of-the-art technology and customer orders continue to grow. Excelsius 3D is positioned to be a major growth driver for us as we continue to penetrate the market."

About the Author(s)

Amanda Pedersen

Amanda Pedersen is a veteran journalist and award-winning columnist with a passion for helping medical device professionals connect the dots between the medtech news of the day and the bigger picture. She has been covering the medtech industry since 2006.

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