Globus Medical, Inc. (NYSE:GMED) Q2 2023 Earnings Call Transcript

Unidentified Analyst: Thank you.

Operator: Thank you. Our next question comes from Caitlin Cronin of Canaccord Genuity. Please go ahead.

Caitlin Cronin : Hi. This is Caitlin on for Kyle Rose. Congrats on an awesome quarter. Just to touch on this topic given what others have called out have you been experiencing any recent supply chain challenges?

Dan Scavilla: Hey Caitlin. Thanks. This is Dan. I would say no, just the opposite. We’re very pleased with the strength of our supply chain both external and internal, whether it’d be the ability to replenish post-surgery. We’re set building. I would tell you that we’re arguably one of our strongest periods, thanks to the hard work of our operations team throughout the, world but in particular here. So I would say we went through Q2 and we’re entering Q3 at a point of strength.

Keith Pfeil: Yes. And the only thing I would add to that is if you count back to last year with some of the supply chain challenges that were called out there in the market I think, we feel better positioned about where we are this year versus last year and it really ties back to the statements Dan just made.

Caitlin Cronin: Awesome. And then just a quick one on the pediatric deformity products you’ve launched recently. Any plans to launch any other products? How do you really view the attractiveness of this market? Thank you.

Dan Scavilla: I think if I heard you correctly, first, the two products that I referred to which are REFLECT and MARVEL, we’re very excited about that, because it’s going to give you a lot of options how to treat those young patients in a way that should hopefully reduce surgeries or further incisions and different items like that in a controlled fashion. So look, this is a market that needs innovation. We’re leaning into that innovation. There’s no doubt that when the right time comes and the FTC approves this, will bring together a NuVa portfolio and come out with an ever stronger offering. These two products REFLECT and MARVEL, are definitely key for us and we’re really excited to get this pushed into the hands of the surgeons in the US.

Operator: Thank you. [Operator Instructions] And our next question comes from Richard Newitter of Truist Securities. Please go ahead.

Lin Zhang: Hi. It’s actually Lin on for Rich. So first of all, congrats on the great quarter. So we heard some comments on capital slowdown in the market. Just wondering if you could — like what you are seeing there?

Keith Pfeil: This is Keith. Thanks for the question. I think just to repeat what you said, you asked if there was — if we were seeing capital slowdowns in the market. I’ll start this and Dan feel free to add. I mean I think that where we’re at today — we’re extremely happy with the uptake of our E3D system as well as our robot. If I look at where we’re at today versus last year at this time on a year-to-date basis, I would say that we’re ahead and we’re happy with where we’re at. We’re continuing to try to sell more. But I wouldn’t say that we’ve seen a slowdown in the market especially when we comp to prior year.

Dan Scavilla: Yes. And I’ll just build on that. I think COVID created some disruption in the market and I think that’s carried through the years, not quite solidified and equalized when it comes into the hospitals with what they’re struggling with. That said, we’re not seeing this year or this quarter any difference as Keith said. It’s just out there and we’d all like it to be stronger, but there’s nothing noticeable and change for us in Q2 that we would call out as a significant difference.

Lin Zhang: That’s helpful. Thank you. A follow-up. So on Japan, could you provide us some color like what really drove that strength there? Thanks.