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Globus Medical, Inc. GMED recently completed its previously disclosed acquisition of Nevro Corp., a global medical device company that delivers comprehensive, life-changing solutions for the treatment of chronic pain.
The latest acquisition of Nevro expands Globus Medical's presence in the musculoskeletal market.
Potential Trend of GMED Stock Following the News
Since the announcement on April 03, shares of Globus Medical have dropped 4.6%, closing at $72.02 last Thursday. On a positive note, the company is gaining market share in the musculoskeletal solutions space, fueled by the strong performance of its implantable devices, biologics, accessories and unique surgical instruments used in spinal, orthopedic and neurosurgical procedures. Reflecting on the robust synergies from the NuVasive merger, we anticipate that the latest acquisition should positively impact the market sentiment toward GMED stock.
Globus Medical has a market capitalization of $9.47 billion. Going by the Zacks Consensus Estimate, the company’s 2025 revenues are expected to surge 6.5% year over year. In the trailing four quarters, it delivered an average earnings surprise of 19.86%.
Importance of GMED’s New Acquisition
The transaction advances Globus Medical’s goal of becoming the premier musculoskeletal technology company globally, unlocking a $2.50 billion market opportunity. Nevro’s comprehensive HFX spinal cord stimulation (SCS) platform includes the Senza SCS system and support services for the treatment of chronic pain of the trunk and limb and painful diabetic neuropathy. The company also provides minimally invasive treatment options for patients suffering from chronic sacroiliac joint pain.
According to GMED administration, the deal allows them to expand into new markets for future growth while gaining access to Nevro’s world-class, differentiated technologies that can provide significant benefits in neuromodulation, enabling technologies and future implant solutions. Furthermore, the company’s scale and operational discipline will help optimize Nevro’s financial performance, driving enhanced profitability and creating long-term value.
Following the acquisition of Nevro, Globus Medical projects net sales to be in the range of $2.80-$2.90 billion (up from $2.66-$2.69 billion) for 2025.
Industry Prospects Favoring GMED Stock
Per a report by Future Business Insights, the global orthopedic devices market was valued at $59.4 billion in 2023 and is expected to witness a compound annual growth rate of 5.3% through 2032. The market’s growth is driven by the rising prevalence of osteoporosis and musculoskeletal diseases, technological advancements, the increasing incidence of sports and traumatic injuries, and the growing aging population.