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

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Mathew Blackman: Alright, appreciate it. Thank you.

Operator: Thank you. Our next question comes from the line of Richard Newitter of Truist. Please go ahead, Richard.

Richard Newitter: Hi, thanks for taking the questions. Two for me. Just on the deal, you mentioned minimal customer overlap. I was hoping you could elaborate on what the threshold was for defining minimal overlap per surgeon between the 2 companies. I’m essentially just trying to gauge whether a surgeon that you consider not to be overlapped will that necessarily translate into minimal disruption in the region, especially in the way that territories are going to be grown because you still need to split those territories. So I was just hoping you could maybe elaborate a little bit on that.

Dan Scavilla: Yes, Rich, I’ll do that in a certain way. There’s not a lot I can reveal right now with where we’re going on this, but I will give you what I think we can do along these lines. So during the diligence, of course, all of this data was blinded and it was done by bankers, not us. And we traced it down to a surgeon level as the most logical way to go. And what we found is — we had the vast majority as complementary. And what the definition of the complementary is that someone may either have 100%, 80%, 75% of a surgeon by themselves. And it was kind of after that, maybe if you’re 50-50 or less, that would be the overlap. And so what we found is kind of — I can’t really reveal this, but I would say extremely high in the 90s of the ability to match up.

Now as we unblind that, perhaps we see it differently. We adjust, we look and go. But even with a surgeon overlap, very well could be that the surgeon is using NuVasive’s pedicle screws in our interbody or vice versa. So it may not be a product conflict. The thought being that even along those lines, where that is the case, we can decide between those reps, what’s best. Does one keep the surgeon? Do they both keep it that way? Our goal is to maintain all of the reps. We have enough space, enough growth, enough opportunity to do this. So it’s not really about a rep rationalization. And what we’re signaling out to the market is we believe that this is a very favorable thing for the deal that will minimize disruption.

Richard Newitter: Got it. And then just — I think you had referenced a new augmented reality headset product launch in 2023 on your last conference call. Just curious if that’s still on track and what the timing might be there.

Dan Scavilla: I’m speaking to you through it right now, Rich. No, kidding. No, listen, it’s on track. I think that, again, you can never say for sure what’s going on with the FDA in the filings. But I would tell you that we signaled that with the thought that it would be out towards the latter part of this year. And by no means will we take our eye off that ball. It’s going to be a great player for us to get out and continue to differentiate with this type of approach. So it’s one of the top priorities.

Richard Newitter: Okay. And anything in there from a guidance standpoint baked in?

Dan Scavilla: Well, you know how we always answer that, right? So in total, we feel good. It’s one of the levers that we’ll look at, but it’s something that would not take us off our ability to achieve our numbers, whether it came to market or did not.

Richard Newitter: Great. Thanks a lot.

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