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

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Dan Scavilla: I’d say the strength in Japan is really — the business is really starting to take hold. And as we think about what we’ve done in the last couple of years our go-to-market plan of controlling the territories with the reps that we have, that is really taking hold and really we’re starting to see growth, because we saw a period of time where we saw consecutive sales declines. We’re not going the other way and we think that our strategy is starting to take hold.

Lin Zhang:

Operator: Thank you. One moment for our next question. Our next question comes from Steven Lichtman of Oppenheimer & Company. Please go ahead.

Q – Unidentified Analyst: Hi, guys. This is Ron [ph] on for Steve. Congrats on the great quarter. Wanted to ask, if you guys see any signs of sales force concern or losses, because of the pandemic deal are there any initiatives you were putting in place for sales force retention?

Dan Scavilla: Ron, thanks for the question. No, we have not seen anything right now with our sales force in Globus and having concerns with that. Really the best approach that we have is to develop and launch products, get them in their hands, pay them as we do and look to supply them in a stronger supply chain that way. In doing that, and creating that level of innovation and support, we feel like we’re one of the best places to be. I think we have to be mindful of what can happen in the future. Certainly, there is concern with that. And so, we’re communicating and we’re making sure that we interact, with our field at a higher rate just so, they’re aware of what’s going on and where we’re going our commitment to them and how they will remain vital to us, in one of our main growth engines.

And so we’re really just kind of reminding them of how great they are, making sure that we can provide them with what they need, so that we can drive this forward while we’re waiting to get the approval and certainly need their hands on and driving, as we get through the post approval.

Keith Pfeil: And the only thing, I’d add to that is as you look ahead, you’re bringing together two companies that are committed to product development and that’s something we see going forward, as well as surgeon education and you’re bringing together two innovators. When it comes to product, I think that should continue to drive excitement across both sales forces.

Q – Unidentified Analyst: Great. Just a short follow-up. Maybe you guys can give us some commentary about pricing trends in the US, in the recent quarter.

Keith Pfeil: Pricing trends really, it’s really low single-digit decline. I wouldn’t say, that that’s really any different. As we think about Globus, what we’ve done to offset price erosion is really launched new products, bring those to the market. We’ve done that with some of the product launches Dan talked about earlier, as well as things that we have planned for the remainder of this year.

Dan Scavilla: I would just add, we’ve seen no significant change in pricing pressures or shifts with that as we look over the past multiple quarters. It’s been fairly consistent for us.

Q – Unidentified Analyst: Thanks, guys.

Operator: Thank you. With no further questions that concludes the Globus Medical Earnings Call. Thank you for participating and you may now disconnect.

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