With about $1 billion in cash on its balance sheet, Globus Medical is looking to explore strategic partnerships that could capitalize on some weaknesses in the medtech market, according to the company's first-quarter earnings call, transcribed by The Motley Fool.
"We're always out there looking at M&A," Keith Pfeil, Globus senior vice president and CFO, said on the call. "As [inflation] rates go up, I think that smaller companies out there that might be laden with debt will be opportunities for us to potentially look at and acquire."
Spine companies that offer the biggest opportunity for Globus to acquire would be smaller startups looking at research and development that are not fully developed as well as complementary technology that would benefit the company's enabling technologies business, Mr. Pfeil said.
In the first quarter, Globus experienced a slowdown in enabling technology sales as hospitals focused on COVID-19 and staffing shortages. However, robotic procedures and implant pull-through continued to accelerate, growing 27 percent year over year.
The company said more than 31,000 robotic spine surgeries have been performed with its flagship ExcelsiusGPS system, which combines a robotic arm with navigation to improve accuracy in the placement of screws during spine surgery and reduce radiation exposure for the surgical team.
"Entering Q2, our pipeline is stronger, and we're focusing on driving robotic sales throughout the rest of the year," Dan Scavilla, Globus president and CEO, said on the call. "In May, we began shipment of our Excelsius 3D imaging system and successfully completed the first surgeries in several sites."
Excelsius 3D is a three-in-one imaging platform with high maneuverability, a large field of view and seamless integration with the ExcelsiusGPS Robot, according to the company.
"Market interest is high on the state-of-the-art technology and customer orders continue to grow. Excelsius 3D is positioned to be a major growth driver for us as we continue to penetrate the market," Mr. Scavilla said.