Globus Medical, Inc. (NYSE:GMED) Q4 2022 Earnings Call Transcript

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Dan Scavilla: Thanks, Vik. So I would just get through the second part of the question. We’ve always expected — we’ve always talked about how we’re one of the first to move on this and the market will actually grow over time and become naturally competitive. So you kind of asked the question, what do you do to stay relevant. We’ve been talking continuously about our development of the ecosystem of multiple things that all fit together. We’ve talked about our procedural applications from pre-op planning through to post-op data and feedback loops. All of those items were well ahead of the curve. We’re pushing out. We’re driving. That will not only keep us relevant but actually keep us as a leader here. And so listen, competition will come as natural.

They’re coming because of our success, and we’re going to go continue to innovate spend. We’ve talked continuously about our investment in R&D and how that’s a pull down because we’re investing properly to build the strength for long-term gains here. That was the first part. And I apologize, can you bring up your first part of the question again on the deal itself?

Vik Chopra: Yes, sure. Just on the divestiture, can you talk about where some of the product overlap is and which assets or categories you think you may have to potentially divest?

Dan Scavilla: No, it’s a great question. I would tell you that given our size, we’re not anticipating any significant divestitures at this time. We’re in the middle of all of this filing. So again, we’ve got the places in the hands of the government and wait. But we’re not going in with any thought or concern that we’re seeing right now that would trigger anything of significance.

Vik Chopra: Thank you.

Operator: Thank you. Our next question comes from the line of David Saxon of Needham & Company. Please go ahead, David.

Unidentified Participant: Hi, guys. This is Joseph on for David. Maybe just looking towards the upcoming new robot launch. Could you — maybe talk about some of the strategy behind that? What are the initial accounts you’re going to be targeting. You did talk about the expansion of the sales force, but maybe could you also talk about maybe pricing and feature set maybe relative to currently available robots? And then, if possible, could you quantify those commercial investments associated with the launch.

Dan Scavilla: Thanks, Joseph. I wish I could, but we don’t have all of that data just yet. So let me break your question into those chunks and go at them. I think accounts, certainly, we would have our eyes on ASCs and certainly hospitals. So I wouldn’t say we’re going to specialize in one or the other. We’ll look to go at both with that type of approach. You are correct that our initial thought was capital reps and obviously, implant reps will require us to take steps in investments things that we’ve built into our projections. But again, if you know us, we don’t go out and have a big bang. We use concentric circles where hire a group stabilize and get it going, moving, we’ll pay for them and go on and on, just as we’ve done in the past.

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