Globus Medical beats Q2, buys AI health firm, wins EU clearance for imaging robot
Q2 beat and raised guidance Globus Medical reported Q2 revenue of $789.6 million, up 5.9% and above estimates, and beat profit expectations while raising full-year guidance. US Spine rose 7% and international spine 14%, showing the core business is still taking market share.
The latest earnings beat and guidance raise are the clearest new evidence of business strength.
AI digital health acquisition Globus Medical bought Higgs Boson Health, a Duke-incubated AI software company, to build 'surgical intelligence' that tracks patient outcomes across the whole episode of care. It adds technology and talent rather than near-term sales, so it supports the long-term growth story more than this quarter's numbers.
A new acquisition expands Globus Medical's technology and talent, a fresh strategic driver.
EU approval for Excelsius3D imaging system Globus Medical's Excelsius3D imaging system received CE marking, letting it be sold in the EU and UK. The system combines 3D CT, 2D fluoroscopy and digital X-ray and works with its ExcelsiusGPS surgical robot, so it can lift sales of the whole robotic ecosystem abroad.
New regulatory clearance opens European commercialization, a concrete new growth avenue.
Insurance worries and governance probe Intuitive Surgical warned that insurance plan changes could slow US procedure growth, dragging medical device stocks including Globus Medical down 4.4%. Separately, Kuehn Law is investigating whether Globus Medical officers and directors breached their duties through possible self-dealing, a governance cloud that can weigh on sentiment.
These are the main new negatives: a sector demand scare and a legal/governance investigation.