Reuters is reporting that Audubon, Pennsylvania based Globus Medical, Inc. is in preliminary discussions to acquire Carlsbad, California based NuVasive, Inc. NuVasive, which is expected to overtake JNJ’s Synthes as the #2 spinal implant supplier in the world by the end of 2022, has a market value of $3 billion, annual sales of about $1.1 billion and operating income of about $200 million.
Globus Medical in Discussions to Acquire NuVasive
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Globus Medical, with a market value of $7.5 billion, sales of $941 million and operating income of $300 million, reportedly initiated the preliminary discussions.
NuVasive has declined to comment but, according to Reuters, people familiar with the matter said that Globus Medical had approached NuVasive with an acquisition offer.
David Saxon, research analyst with Needham, wrote to clients: “This afternoon, it was reported that GMED is in early discussions to acquire NUVA. While spine and orthopedics deals are typically associated with revenue dis-synergies, a GMED/NUVA combination could offer potential cross-selling opportunities.”
“Specifically, we believe GMED could cross-sell its Enabling Technologies platform, which could offset some or all of any spine implant dis-synergies. GMED would leap-frog to the #2 spine company (from #5 currently), with an estimated ~21% market share.”
“Recall in 2019, SNN was reportedly in talks to acquire NUVA (see here), so SNN could be another potential buyer.”
Stay tuned, for sure.
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This is a fascinating development. In my practice we've seen similar outcomes with the revised protocol. The key differentiator seems to be patient selection criteria. Has anyone else noticed the correlation with BMI thresholds?
Great point. I'd push back slightly on the conclusion, the sample size in the cited study is too small to draw population-level inferences. That said, the directional signal is compelling and worth a larger RCT.
We implemented a similar approach last year. Early results are promising but we're still gathering 12-month follow-up data. Happy to share our protocol if anyone is interested.
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