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

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Keith Pfeil: And the only comment I would add to Dan, to what Dan stated, if you step back and look at Enabling Tech, going back to 2018, that business delivered $47 million in sales in ’18. It delivered $47 million in ’19. We went through COVID, and we delivered $41 million. And last year, we delivered 81 to finish this year at 96. So the business has really grown. Obviously, there’s always issues that we’re going to be faced with. But at the end of the day, we’re going to really work to get through them and really get our capital in the hands of our customers.

Craig Bijou: Got it. Thanks for taking the questions, guys.

Keith Pfeil: Thank you.

Operator: Thank you. Our next question comes from the line of Kyle Rose of Canaccord Genuity. Please go ahead, Kyle. Kyle Rose, your line is open.

Kyle Rose: Sorry, I didn’t hear my name there. Thank you for taking the questions. I want to talk a little bit about top line guidance. You outlined some expectations for the usual sales dis-synergies once the deal closes. I’m just wondering how you’re thinking about the first half of the year pre-deal close. Any sort of people taking the eye off the ball, maybe guidance contemplate some of that on a stand-alone basis? And then there’s potential upside there if that doesn’t play out. Any insights you can provide there would be helpful. And then secondarily, on new products, you’re still talking about the total joint application from a robotics perspective. But in the past, you’ve detailed maybe some product gaps or need to improve the underlying implant systems in total joints. Is it fair to expect that we should see some of those new product launches come along ahead of the robotics launch?

Keith Pfeil: Right. Thanks for the question. I’ll take the first part and hand the second part over to Dan. So as it relates to guidance, stand-alone guidance and looking at 2023, I don’t see or we don’t see anybody taking their eye off the ball. We’re happy with what we’ve seen thus far in the quarter. Sales are — meeting expectations. So I don’t see anyone taking their eye off the ball. It is — we are running a business, and we’re moving the business forward as we intended prior to deal announcement.

Dan Scavilla: What I would say on your second question is we will launch out our robot that will have a knee application. We’re working on other applications now. I would not think that you’re going to see them come out before the knee application would be my initial thoughts. So I think we’ll start out with the real migrate and hip as we said, and then we have the ability to move into other applications over time that way.

Kyle Rose: Thank you.

Operator: Thank you. Our next question comes from the line of Mathew Blackman of Stifel. Your question please, Mathew.

Mathew Blackman: Hi, it’s Matt Blackman from Stifel. Thank you for taking my question. Just one, just thinking about the inputs you put into your deal model revenue dissynergies, synergies do you think there’s the most flex or maybe better said, where is the most opportunity and perhaps the most risk as you think about those different inputs?

Dan Scavilla: Yes, it’s a great question, a little bit of a teasing question. We probably don’t want to answer. But what I would tell you is I feel like we were aggressive in what we think the dissynergies would be and light in what we think the synergies will be. We’re conservative group by nature, if you know us, and so I do think that we might be able to retain better than we’ve planned in dissynergies. And I think that we could probably beat if we have the right focus on our synergies within those sales areas, but not product specific, just in general.

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