GMED

Globus Medical Inc - Ordinary Shares - Class A

Healthcare


Presented:03/14/2023
Price:$52.68
Cap:$5.28B
Current Price:$74.05
Cap:$10.03B

Presented

Date03/14/2023
Price$52.68
Market Cap$5.28B
Ent Value$7.15B
P/E Ratio28.41x
Book Value$18.43
Div Yield0%
Shares O/S100.29M
Ave Daily Vol1,274,536
Short Int5.03%

Current

Price$74.05
Market Cap$10.03B
Globus Medical, Inc. operates as a medical device company that develops and commercializes healthcare solutions. The firm engages in developing products that promote healing in patients with musculoskeletal disorders. It classifies products into Innovative Fusion and Disruptive Technology. It operates through the United States and International geographical segments. The company was founded by David C. Paul, David D. Davidar and Andrew Iott in March 2003 and is headquartered in Audubon, PA.

Publicly traded companies mentioned herein: Globus Medical (GMED), NuVasive (NUVA), Medtronic (MDT), Johnson & Johnson (JNJ), Stryker (SYK), Zimmer Biomet (ZBH)

Highlights

The presenter is long Globus Medical Inc (GMED), a musculoskeletal medical device technology company with a focus on the spine. On February 8, 2023, GMED announced an all stock merger with NuVasive (NASDAQ: NUVA), another spine competitor. The presenter notes that there was initial surprise and a lot of general skepticism about the proposed merger, which is reflected in GMED shares that have dropped from $76.96 on the announcement date to $52 today. The transaction which was valued at $3.1B on the announcement date, is now valued at $2B. Despite the two companies’ strong positions in the same $50B musculoskeletal market there is a consensus belief that this particular combination will produce a clash of cultures leading to serious business disruptions. Additionally, there is wide opinion that past spinal acquisitions have been challenging and not value added for the acquiror.

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Idea Discussion

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