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

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So I wouldn’t signal that there’s a major drop or an anticipated investment that takes us off of our curve that way. And finally, with pricing, I would just tell you, we’ll price at the market appropriately. We recognize there’s competition out there. We feel like we’ve got a viable solution that will add value to doctors. And like I said, depending on what the market bears, we’re in a position to actually do that.

Unidentified Participant: Okay. Great. Yes, that makes sense. And then maybe could you maybe just give a quick update on the commercial team out in Japan if things have maybe stabilized there, there’s still more wood to chop?

Dan Scavilla: Yes. I would tell you that it’s in the stabilization phase, it’s probably about a quarter behind where I would have wanted it to be. But what we’re seeing right now is that is settling down into where I think it’s actually at the point where we should expect to see some building up of it in the first half of this year.

Unidentified Participant: Okay, great. Thank you for taking our questions and congrats on the quarter.

Dan Scavilla: Thank you.

Operator: Thank you. Our next question comes from the line of Steven Lichtman of Oppenheimer. Please go ahead, Steve.

Steve Lichtman: Thank you. Good evening, guys. Looking at it to the 2023 sales guidance, wondering if you can provide any color on components of growth, U.S. versus U.S. Spine, Emerging Tech, incremental Trauma. Any color there?

Keith Pfeil: Great question. Thanks for it. We typically don’t break out the parts and pieces. But when I step back and look at the year that we’re going into, I think we still feel very bullish about our U.S. Spine business and its ability to grow. I think we came off a strong quarter between that Biologics and Trauma in the U.S., Enabling Tech. I see that continuing to grow, cognizant that we’re entering into a recession. However, one of the things that we see happening is greater sales of those units internationally. So that’s something that we feel good about going into next year. But that’s about as much detail as give in terms of bringing out the guidance.

Dan Scavilla: Steve, one thing I’d add to that, which I’m pleased with is we’re not dependent upon one or two of these. It really seems like we’re projecting forward as we’ve performed in the past. And while we’ll never get each one of these exactly right, we have enough levers here that I feel strongly that we can get into this and achieve it.

Steve Lichtman: Got it. Okay. And then just secondly, as you look ahead here near term, is there anything you feel you need to do to help retain reps and prevent any coaching ahead of the deal closing? Or just overall sort of what you think the sort of the tenor of the group in the last couple of three weeks here?

Dan Scavilla: It’s a great question. And look, it’s human nature in the state of change to have some discomfort. So the best thing to do is communicate because we don’t need to beg here with this. Keep in mind that we, as Globus and what we intend to do is the bigger company, is pay strongly for our reps, and we’ve been doing that historically without change unlike other companies. So we’re going to maintain that. At the same time, we have discussed in person with the field team our portfolio to understand the strengths that we’re about to give them on the NuVasive side, and they’ve actually are in the process of doing the same for us on the Globus side with that. So we’re talking about strong compensation, arguably the strongest offering for products in the spine market with that.

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