In 2Q17, the leadership of Globus Medical (GMED) expressed a desire to diversify outside of spine, affirming plans for production of trauma products.
Fast-forward to the 2018 American Academy of Orthopedic Surgeons (AAOS) Annual Meeting this month, where GMED displayed its growing portfolio of FDA 510(k)-cleared trauma products in four families, including fracture plates, compression screws, cannulated screws, intramedullary nails and external fixation. Full launch of all systems will commence in 2Q18 (profit contributions of significance are expected in 2019).
These eleven FDA-cleared products, which address upper and lower extremities and hip and long bones, are:
- Proximal Humerus Plating System for shoulder fractures, with variable angle calcar screws and radiolucent instruments
- Clavicle Plating System with plate contours optimized for clinically-based fracture zones
- Comprehensive Distal Radius Fracture System for wrist fractures with volar, dorsal and lateral plates as well as a robust bridge plate
- Proximal Tibia Plating System with triple kick-stand screw fixation, integrated polyaxial rafting screws and a radiolucent aiming arm for percutaneous fixation
- Comprehensive Ankle Fracture System including distal Fibula plates, Cannulated Screws and Small Fragment Plating components
- Small Fragment Plating System for general fractures with locking and non-locking implants and radiolucent instruments
- External Fixator System enabling fracture stabilization using one style clamp and one instrument
- Tibial Nailing System offering infra- and supra-patellar approaches and locking options
- Trochanteric Nailing System for geriatric hip fracture reduction and fixation
- Comprehensive Femoral Nailing System with Recon screw options in Piriformis and Troch-entry style nails
- Comprehensive Compression Screw System for general fracture care, including headless screws and a variable-length family of screws to address tough-to-reduce fractures or limited bone purchase scenarios
The company considers these 11 to be their core trauma systems. “We feel we can capitalize on our strengths of innovation and speed to market to bring game-changing technology in the trauma market,” stated Barclay Davis, Vice President for Orthopedic Trauma.
In the company’s 4Q17 earnings call, CEO David Demski pointed to recent talent acquisitions on the sales front – in addition to more planned hires—as a reason for optimism in the trauma space, going forward.
GMED reported 4Q17 revenue of US $176.0MM, +16.1% vs. 4Q16, and 2017 revenue of $636.0MM, +12.8% vs. 2016. GMED ended 2017 strong overall, with growth in all parts of the business.
Overall 2018 revenue guidance of ~$690MM has been reaffirmed by company leadership.
It’s clear that GMED is intent on moving beyond the pure-play spine company label and further investing in the trauma space.
Trauma was referred to as “a 2019 story onward” in the earnings call and as a “multi-year tailwind” and “growth driver for the company” by analysts from Canaccord Genuity. “We continue to think Globus is capable of delivering innovation in trauma, but note success is likely to be measured over the course of several years rather than quarters,” Canaccord Genuity wrote in its analysis of GMED at AAOS 2018.
*Images courtesy of Globus Medical