According to a Seeking Alpha article, the Federal Trade Commission (FTC) is evaluating a possible lawsuit to challenge the agreement between Globus Medical and Nuvasive. The FTC has the deal on its radar, the traders said, and they cited a Capitol Forum story circulating Thursday that mentions the deal as part of a larger article on antitrust investigations.
Capitol Forum tweeted earlier this month commenting that according to some surgeons, this Nuvasive/Globus deal may give doctors fewer operating options. Wells Fargo said in a note Wednesday that a market concentration analysis of the deal suggested the combination is likely to come under FTC scrutiny. Analyst Vik Chopra wrote. “Our analysis of the GMED/NUVA settlement results in an HHI increase of ~250 points, suggesting potential FTC scrutiny given competitive concerns,” “For context, the greater the increase in the HHI, the greater the potential competitive concerns of the FTC.”
Globus Medical (GMED) is scheduled to report Q2 results on Aug. 3.