A high-profile acquisition in the orthopedic industry has the potential to significantly boost a company’s competitiveness. Globus Medical is rumored to be looking to acquire San Diego, CA-based spinal surgery company Nuvasive, according to a Reuters report, citing people familiar with the matter.
The Reuters report goes on to say that talks between the companies were preliminary and there is no certainty that a deal will be reached.
Nuvasive started 2021 with a number of mergers and acquisitions of its own. The company added a differentiated cervical disc to its product portfolio through a $150 million acquisition of Simplify Medical.
Nuvasive is now in a place that many orthopedic companies are today. The company has had to fight for stability since the outbreak of COVID-19.
The backbone company lowered its FY21 revenue forecast from $1.132 billion – $1.142 billion from $1.19 billion – $1.21 billion earlier. Ryan Zimmerman, an analyst at BTIG, said the year-over-year decline in net sales in 3Q was a combination of the impact of Delta and staff shortages on electoral processes and limited NSO product availability.
“We believe that following the COVID crisis, a return to improved outcomes in biologics and NCS could boost U.S. surgical support, and new product introductions in cervical and open spine surgery are not being considered,” Zimmerman wrote in a research paper. .