Gains for Globus in Q3

Spine implant manufacturer Globus Medical Inc. posted solid third-quarter performance. Management for the Audubon, Pa.-based company expressed its satisfaction with the results.

“We are very pleased with our industry leading top line growth and profitability this quarter. Our growth this quarter is again attributable to the increased adoption and success of newer, more disruptive products, which are designed to provide better treatment for the patient, and are safer and easier to use for the surgeon,” said David Paul, chairman and CEO. “During the quarter we launched Creo, our next-generation pedicle screw platform, one of the most significant projects in our history. Creo offers surgeons significant intraoperative adaptability to tailor the construct to best meet individual patients’ needs in treating complex spinal pathologies.”

Net sales for the third quarter (ended Sept. 30) were $107.2 million, compared to $94.8 million last year, representing a 13.1 percent increase. U.S. and international sales grew by 12.6 percent and 19.1 percent, respectively, in the same quarter in 2012. International sales represented 8.5 percent of worldwide third-quarter sales.

Net income for the quarter was $20.3 million, or 22 cents per diluted share, as compared to $16.5 million, or 18 cents per diluted share, for the third quarter of 2012.

Richard Newitter, an industry analyst for Boston, Mass.-based Leerink Swann, was bullish on the company’s performance for the quarter, year to date and prospects for next year.

The company’s “innovation engine,” as Newitter characterized it has been the company’s “lifeblood” and “remains very much alive with 15 new products launched in 2013 year to date and three new ones rolled out in the third quarter.

Newitter also noted that Globus aggressively has been hiring sales reps, which is “another important initiative to drive growth in future periods as [Globus] expands into new territories and penetrates deeper into existing ones.”

The new rep hires will see productivity increase in the coming quarters as it usually takes 18-24 months, according to Newitter, for a reps to be fully up and running.

“All of this in our view should position the company to sustain above-average sales growth and profitability in 4Q:13 and into 2014,” he wrote.