Globus Medical (GMED) CG 2025 Musculoskeletal Conference summary

Strategic overview and recent mergers

• Merged with NuVasive in September 2023, combining innovative technologies and expanding reach to more surgeons domestically and internationally.

• Integration doubled market access and enabled cross-selling of best-in-class products from both companies.

• Focus on enabling technologies, including a leading surgical robotic system, imaging, and navigation, now accessible to a broader surgeon base.

• Cost-saving synergies from the merger are expected to significantly boost cash flow, supporting future acquisitions and R&D.

• Announced intent to acquire Nevro, expanding into spinal cord stimulation and opening a $2 billion market.

Financial performance and guidance

• Achieved 5% pro forma growth in 2024 despite sales integration risks.

• Realized $94 million in synergies in the first year post-NuVasive merger, out of a $170 million three-year target.

• 2025 guidance (including Nevro): $2.8–$2.9 billion in sales, $3.10–$3.40 non-GAAP EPS, and gross profit margin of 67.5%–68.5%.

• R&D investment to remain at 6%–7% of sales, CapEx at 5%–6% annually.

• Seasonality: Q4 is the strongest quarter, with Q1 typically accounting for 23%–23.5% of annual sales.

Product innovation and launches

• Launched 18 new products globally in 2024, including the DuraPro oscillating drill for safer bone surgery.

• E-Flex surgical knee robotic system and NuVasive’s Reline pedicle screw system (now FDA-cleared for navigation) highlighted as key launches.

• Precice limb lengthening nail and other trauma technologies showcased at AAOS.

• Enabling tech strategy focuses on building a competitive hip and knee replacement portfolio, with further enhancements expected by late 2024.