Globus Medical (NYSE:GMED) said profits dropped slightly during the 3rd quarter, despite a 12.5% increase in sales for the Audubon, Pa.-based orthopedic medical device company.
Globus reported net income of $16.5 million, or 18¢ per share, on $94.8 million in sales during the 3-months ended Sept. 30, off 2.2% from profits of $16.9 million, or 19¢ per share, during the same period last year.
The spinal device maker attributed the drop in profits to investments it made in its interventional pain management division, Algea Therapies, which "negatively impacted the quarterly adjusted [earnings before interest, debt, taxes & amorization] by 2.4%."
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Globus officials said the revenue growth was driven by increased sales of its minimally invasive surgical and lateral platform products.
In September, Globus received FDA approval for its Secure-C cervical artificial disc, designed to restore normal movement to the neck in patients with disc problems that produce neck and arm pain. It consists of 2 cobalt-chrome endplates and a central polyethylene core that mimics the function of a healthy spinal disc.
Globus’ cash position remains strong, with the company’s coffers increasing $29.6 million to $195.2 million. Officials said $21 million came as a result of the company’s recent IPO.