Globus Medical Rises in Debut

NEW YORK—Medical-device designer Globus Medical Inc. jumped on its first day as a publicly traded company, the second stock this week to record strong gains in its public debut.Globus’s stock opened at $13.10 a share on the New York Stock Exchange, up 9.2% from its $12 offering price, then padded gains throughout the session. Shares ended up $1.50, or 13%, at $13.50.Globus had lowered its target price to a range of $12 to $13 on Thursday, and it sold a total of 8.3 million shares, at the low end of the revised range. The deal raised $100 million. Globus Medical previously estimated an IPO of 11.8 million shares at a price of between $16 and $18.The Audubon, Pa.-based company designs devices for patients with spine disorders, and its products are used in spinal-fusion surgeries. Globus also designs products intended to be used in new types of spine surgeries, including those that are less invasive than existing procedures.In the first quarter, total sales rose 21% to $95 million, due primarily to product launches, and earnings rose 22% to $18 million from the same period a year earlier.
Globus Medical said the market it services has attracted new competitors and lured established medical-device companies, which has pressured prices. Hospitals and other health-care providers buy Globus Medical’s products and typically bill other payers, such as insurance companies. Globus said in its prospectus that reimbursement rates could also create pricing pressure.