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Globus Medical GMED continues to gain from surging demand for its Musculoskeletal Solutions products. However, the challenging macroeconomic scenario continues to plague Globus Medical. The stock currently carries a Zacks Rank #3 (Hold).
Factors Driving GMED's Shares
Globus Medical is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures. The company is particularly seeing notable gains across its product portfolio in expandables, biologics, MIS screws, 3D printed implants and cervical offerings.
In the fourth quarter, Globus Medical's musculoskeletal sales improved 4.5% year over year. The growth was driven primarily by strong contributions from the company’s international spine business and a 43.5% increase in global Enabling Technologies revenues. GMED is also optimistic about the recently-inked deal to acquire Nevro Corporation. The acquisition of Nevro is expected to expand Globus Medical’s reach into the musculoskeletal market, adding an additional $2 billion market space in this niche.
During the fourth quarter of 2024, the company launched five new products. Among the launches, we should mention the QUARTEX MIS system, which offers a percutaneous solution designed to minimize disruption in the posterior cervical and upper thoracic spine. There is also the ALLEGIANCE Retractor System, a ringless interior exposure system designed for quick setup, precise tissue retraction and maximum rigidity. In addition, the company launched the ExcelsiusFlex robotic navigation platform and the ACTIFY Unicondylar Knee System in the fourth quarter.
GMED currently awaits a strong cadence of product launches throughout the Musculoskeletal portfolio in the coming months of 2025. The company's high R&D spending trend is indicative of a healthy pipeline. We estimate the company's R&D expense to increase 11.2% in 2025.
Globus Medical, Inc. Price
Globus Medical, Inc. price | Globus Medical, Inc. Quote
Globus Medical merged its business with NuVasive. The combined company has formed a global musculoskeletal company focused on rapid innovation, addressing unmet clinical needs, and improving offerings to surgeons and patients. The combination capitalizes on GMED’s complementary commercial organization and should allow the company to accelerate its globalization strategies to increase customer reach and strengthen surgeon relationships.
At the end of the fourth quarter, Globus Medical noted that NuVasive Integration is progressing well. The combined company exceeded its 2024 collaboration targets and was able to accelerate value creation and shareholder return as a result. For the second year’s synergies, the company is successfully implementing common systems in the international markets, expanding its in-house production for NuVasive implants, consolidating the external vendors and utilizing its existing product offerings to drive cross-selling.