Latest news with #Nevro
Yahoo
10-06-2025
- Business
- Yahoo
GMED Q1 Earnings Call: Integration Challenges, New Acquisition, and Market Uncertainties Shape Outlook
Medical device company Globus Medical (NYSE:GMED) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 1.4% year on year to $598.1 million. On the other hand, the company's full-year revenue guidance of $2.85 billion at the midpoint came in 4.2% above analysts' estimates. Its non-GAAP profit of $0.68 per share was 8.6% below analysts' consensus estimates. Is now the time to buy GMED? Find out in our full research report (it's free). Revenue: $598.1 million vs analyst estimates of $627.6 million (1.4% year-on-year decline, 4.7% miss) Adjusted EPS: $0.68 vs analyst expectations of $0.74 (8.6% miss) Adjusted EBITDA: $177.8 million vs analyst estimates of $195.4 million (29.7% margin, 9% miss) The company lifted its revenue guidance for the full year to $2.85 billion at the midpoint from $2.68 billion, a 6.5% increase Management lowered its full-year Adjusted EPS guidance to $3.15 at the midpoint, a 8.7% decrease Operating Margin: 16.2%, up from 1.3% in the same quarter last year Market Capitalization: $8.17 billion Globus Medical's first quarter results highlighted several operational challenges, with CEO Dan Scavilla attributing flat sales to 'softer enabling tech sales against difficult comp, temporary integration related supply chain disruption and timing of international distributor orders.' The U.S. Spine segment posted modest growth, supported by high retention among sales teams and increased cross-selling, but this was offset by supply chain issues and reduced third-party biologics sales tied to changes in reimbursement for wound care. Management acknowledged the impact of these headwinds, emphasizing that issues such as back orders and delayed distributor activity have already begun to improve in the second quarter. Despite these setbacks, new product launches like the Cohere ALIF spacer and Reline eGPS fixation system were introduced, aiming to strengthen the company's portfolio and drive future growth. Looking ahead, management's updated full-year guidance reflects optimism about resolving operational disruptions and integrating recent acquisitions. Scavilla highlighted, 'We're already seeing stronger results in Q2 throughout the business as we remediate supply chain disruptions, fill open distributor orders and close robot deals.' The Nevro acquisition, completed in April, is expected to expand Globus Medical's reach in the musculoskeletal market, with management focused on driving profitable growth through operational efficiencies and leveraging the combined sales force. CFO Keith Pfeil cautioned that near-term profitability will be influenced by integration costs, stating, 'The key focus is going to be figuring out their operational expenses and working to reduce those.' Management remains focused on achieving synergy savings and restoring momentum across core business areas. Management identified temporary supply chain disruptions, delayed enabling technology sales, and integration complexities as the primary drivers of first quarter performance. The leadership team also pointed to positive early signs in Q2 business activity and the strategic potential of the Nevro acquisition. Supply chain disruptions impact: Temporary manufacturing integration issues and back orders, especially from legacy NuVasive products, constrained product availability across spine and trauma segments. Management stated these disruptions were largely resolved late in the quarter, with production resuming to normal rates. Enabling technology sales decline: Enabling technology, including robotic systems, saw a notable year-over-year decline due to elongated selling cycles and delayed deal closures amid market uncertainty. Management stressed that the underlying demand remains robust, with the pipeline described as 'robust' and several deals closing early in Q2. U.S. Spine steady, biologics pressured: While U.S. Spine posted modest growth driven by product strength and salesforce retention, the biologics business faced headwinds from anticipated changes in reimbursement for wound care products. This led to a planned reduction in third-party biologics sales. Integration of NuVasive and Nevro: Leadership emphasized ongoing efforts to realize cost synergies from the NuVasive merger and the recently closed Nevro acquisition. Expense reduction, especially in SG&A (selling, general, and administrative expenses), is a priority for improving profitability and offsetting dilution from these deals. New product launches and innovation: Two new products—the Cohere ALIF spacer and Reline eGPS fixation system—were launched, aiming to expand market penetration and address unmet clinical needs. Management cited these as evidence of a strong R&D pipeline. Globus Medical's outlook is shaped by the pace of supply chain recovery, integration of acquisitions, and shifts in reimbursement for certain product lines. Nevro integration and cost control: Management expects the Nevro acquisition to expand addressable markets and drive long-term growth, but near-term profitability will depend on reducing operational expenses and integrating the business efficiently. The company aims to streamline SG&A to align costs with expected revenue. Reimbursement landscape changes: Reductions in reimbursement for wound care and neuromonitoring have impacted revenue streams. Management is pivoting the biologics strategy toward more stable, direct business opportunities to mitigate volatility from external reimbursement shifts. Enabling technology sales cycles: While enabling technology sales were delayed in Q1 due to elongated customer purchasing decisions, management expects a recovery in subsequent quarters as backlogs clear and hospital decision-making stabilizes. Risks remain if broader market uncertainty persists or if competitive dynamics intensify. In the coming quarters, the StockStory team will be monitoring (1) the pace at which supply chain issues and distributor back orders are resolved, (2) progress in integrating the Nevro business and realizing cost synergies, and (3) the recovery of enabling technology sales as hospital purchasing cycles normalize. Additionally, we'll track any further changes in reimbursement policies affecting core business lines. Globus Medical currently trades at a forward P/E ratio of 17.1×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-04-2025
- Business
- Yahoo
Globus acquires US medical device company Nevro
Globus Medical has completed its acquisition of the US-based medical device company Nevro, broadening its market presence in musculoskeletal solutions. The deal, which was initially announced in February 2025, involved the companies signing a definitive agreement. Globus agreed to acquire Nevro's complete shares for $5.85 each, culminating in a total equity value of roughly $250m. Both companies' boards of directors gave unanimous approval for this transaction. Globus noted that this acquisition not only marks a significant expansion but a $2.5bn market opportunity, enhancing its product range in the neuromodulation sector. The company also noted that it intends to discuss the acquisition closure and expected benefits of the expanded product offerings in its first quarter earnings conference in May. Morgan Stanley & Co. and Wyrick Robbins Yates & Ponton provided financial and legal advisory services, respectively, to Globus. Nevro was advised by BofA Securities and Latham & Watkins in financial and legal matters, respectively. Globus focuses on addressing clinical needs in musculoskeletal care. It works across orthopaedic trauma, spine, biomaterials, joint reconstruction and enabling technologies, offering education and clinical backing. Nevro's HFX spinal cord stimulation platform (SCS) includes the Senza SCS system. It offers support services for chronic pain treatment of limbs and trunks, as well as painful diabetic neuropathy. The company's products are designed to offer 'minimally invasive' treatment alternatives for individuals with chronic sacroiliac joint pain. Globus Medical CEO and president Dan Scavilla said: 'We are excited to begin the journey of accelerating market penetration of Nevro's differentiated high-frequency technology and bringing a much-needed treatment option to patients suffering from chronic pain.' "Globus acquires US medical device company Nevro" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Associated Press
06-02-2025
- Business
- Associated Press
SHAREHOLDER ALERT: Rigrodsky Law, P.A. Is Investigating Nevro Corp. Buyout
Wilmington, Delaware--(Newsfile Corp. - February 6, 2025) - Rigrodsky Law, P.A. is investigating Nevro Corp. ('Nevro') (NYSE: NVRO) regarding possible breaches of fiduciary duties and other violations of law related to Nevro's agreement to be acquired by Globus Medical. Under the terms of the agreement, Nevro shareholders will receive $5.85 per share in cash. To learn more about this investigation and your rights, visit: To contact Seth D. Rigrodsky or Gina M. Serra cost free, call (302) 295-5310 or email [email protected]. Rigrodsky Law, P.A., with offices in Delaware and New York, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in securities fraud and corporate class actions nationwide. Attorney advertising. Prior results do not guarantee a similar outcome. Contact: Rigrodsky Law, P.A. Seth D. Rigrodsky, Esq. Gina M. Serra, Esq. Telephone: (302) 295-5310
Yahoo
06-02-2025
- Business
- Yahoo
Globus Medical to Acquire Nevro Corp. to Expand Treatment Options for Patients
AUDUBON, Pa. and REDWOOD CITY, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Globus Medical (NYSE: GMED), a leading musculoskeletal solutions company, and Nevro Corp. (NYSE: NVRO), a global medical device company that is delivering comprehensive, life-changing solutions for the treatment of chronic pain, today announced they have entered into a definitive agreement for Globus Medical to acquire all shares of Nevro in an all-cash transaction. Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, Globus Medical will acquire all shares of Nevro for $5.85 per share. The transaction represents a total equity value of approximately $250 million. 'This transaction furthers our mission to become the preeminent musculoskeletal technology company in the world by enabling us to expand into new markets for future growth, while gaining access to world-class, differentiated technologies that can provide significant benefit in neuromodulation, enabling technologies, and future implant solutions. We believe our size and operational capabilities will accelerate market penetration of Nevro's technology and bring much needed and clinically superior relief to patients suffering from chronic pain,' said Dan Scavilla, President and CEO of Globus Medical. 'In addition, our scale and operational discipline will allow us to optimize Nevro's financial performance to drive enhanced profitability and create long-term value moving ahead.' 'We are thrilled to join Globus Medical as this will allow us to reach more patients globally with clinically proven, innovative products that significantly reduce the burden of chronic pain,' said Kevin Thornal, Nevro's CEO and President. 'Through Globus Medical's capabilities, global infrastructure and other resources, we will be better positioned to achieve our full potential to become a broader and more diversified leader in the pain management space." Transaction Terms The $5.85 per share consideration represents a 27% premium to the 90-day volume-weighted average price (VWAP) of $4.61, a 38% premium to the 30-day VWAP of $4.23, and a 17% premium to Nevro's closing market price on February 5, 2025. The transaction is expected to close late in the second quarter of 2025, subject to the approval of Nevro's shareholders, regulatory approval, and other customary closing January 8, 2025, Globus Medical announced preliminary 2024 net sales of $2.52 billion, an increase of 60.6% over prior year on an as-reported basis; and On January 13, 2025, Nevro announced preliminary 2024 worldwide revenue of $408 million to $409 a stand-alone basis, Globus Medical reaffirms guidance for 2025 net sales of $2.66 billion to $2.69 billion and fully diluted non-GAAP earnings per share range between $3.40 to $3.50; and Following the consummation of the transaction and assuming the transaction closes late in the second quarter 2025, Globus Medical anticipates 2025 net sales of $2.80 billion to $2.90 billion and fully diluted non-GAAP earnings per share range between $3.10 to $3.40. Globus Medical expects the Nevro acquisition to be accretive to its earnings in the second year of Medical expects to report full financial results for 2024 and provide its updated financial outlook for 2025 during its scheduled earnings announcement on February 20, 2025. Nevro expects to report its full-year 2024 financial results on March 4, 2025. In light of the pending transaction with Globus Medical, Nevro will not hold an earnings conference call and webcast or provide 2025 financial guidance when it reports its 2024 financial results. Financial and Legal AdvisorsGlobus Medical's financial advisor is Morgan Stanley & Co. LLC and Wyrick Robbins Yates & Ponton LLP is serving as legal advisor. Nevro's financial advisor is BofA Securities, Inc. and Latham & Watkins LLP is serving as legal advisor. About Globus Medical, in Audubon, Pennsylvania, Globus Medical, Inc. is a leading global musculoskeletal company dedicated to solving unmet clinical needs and changing lives. We innovate with inspired urgency, provide world-class education and clinical support, and advance care throughout spine, orthopedic trauma, joint reconstruction, biomaterials and enabling technologies. Additional information can be accessed at About Nevro in Redwood City, California, Nevro Corp. is a global medical device company focused on delivering comprehensive, life-changing solutions that continue to set the standard for enduring patient outcomes in the treatment of chronic pain. 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. Nevro also provides minimally invasive treatment options for patients suffering from chronic sacroiliac joint pain. To learn more about Nevro, visit Additional Information and Where to Find It This communication may be deemed solicitation material in respect of the proposed transaction. A Nevro special stockholder meeting will be announced to obtain Nevro stockholder approval in connection with the proposed transaction. Nevro expects to file with the SEC a proxy statement and has filed or may file with the SEC other relevant documents in connection with the proposed transaction. Nevro stockholders are urged to read the definitive proxy statement and other relevant materials carefully and in their entirety when they become available because they will contain important information about Nevro and the proposed transaction. Investors may obtain a free copy of these materials (when they are available) and other documents filed by Nevro with the SEC at the SEC's website at and at Nevro's website at Participants in the Solicitation Nevro and its directors, executive officers and certain employees and other persons may be deemed to be participants in soliciting proxies from its stockholders in connection with the proposed transaction. Information regarding Nevro's directors and executive officers is set forth in Nevro's proxy statement on Schedule 14A for its 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 12, 2024, and in Nevro's Current Reports on Form 8-K filed with the SEC. Additional information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of Nevro's stockholders in connection with the proposed transaction and any direct or indirect interests they may have in the proposed transaction will be set forth in Nevro's definitive proxy statement for its special stockholder meeting to be filed with the SEC in connection with the proposed transaction. Safe Harbor Statements All statements included in this press release other than statements of historical fact are forward-looking statements and may be identified by their use of words such as 'believe,' 'may,' 'might,' 'could,' 'will,' 'aim,' 'estimate,' 'continue,' 'anticipate,' 'intend,' 'expect,' 'plan' and other similar terms. These forward-looking statements are based on our current assumptions, expectations and estimates of future events and trends. Forward-looking statements are only predictions and are subject to many risks, uncertainties and other factors that may affect our businesses and operations and could cause actual results to differ materially from those predicted. These risks and uncertainties include, but are not limited to, the risks and costs associated with the integration of the Nevro business, trends in the medical industry and the ability of Globus Medical and Nevro to: (i) successfully integrate and achieve anticipated synergies, (ii) manage our growth, (iii) sustain profitability, (iv) sustain demand for products, (v) compete successfully (including without limitation success in convincing surgeons to use Globus Medical or Nevro products and the ability to attract and retain sales and other personnel, (vi) rapidly develop and introduce new products, (vii) develop and execute successful business strategies, (viii) comply with changes and applicable laws and regulations that are or may become applicable to Globus Medical and/or Nevro, (ix) safeguard our intellectual property, and (x) succeed in defending against legal proceedings in addition to general economic conditions and other risks. For a discussion of these and other risks, uncertainties and other factors that could affect our results, refer to the disclosure of each Globus Medical and Nevro contained in each company's most recent annual report on Form 10-K filed with the U.S. Securities and Exchange Commission, including the sections labeled 'Risk Factors' and 'Cautionary Note Concerning Forward-Looking Statements,' and in each company's Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission. These documents are available at Moreover, each of Globus Medical and Nevro operates in an evolving environment. New risk factors and uncertainties emerge from time to time, and it is not possible for Globus Medical and Nevro to predict all risk factors and uncertainties, nor can we assess the impact of all factors on the Globus Medical business and Nevro business, respectively, or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. Globus Medical and Nevro undertake no obligation to update any forward-looking statements as a result of new information, events or circumstances or other factors arising or coming to our attention after the date hereof. Contacts: Investors:Brian KearnsSenior Vice President, Corporate Development and Investor RelationsPhone: (610) 930-1800Email: investors@ Media:Moran ChavezSenior Director, Corporate AffairsPhone: (619) 318-7681Email: media@ Nevro Investor & Media Contact:Angie McCabeVice President, Investor Relations & Corporate CommunicationsPhone: (628) 261-9432Email: in to access your portfolio
