Globus Medical Strengthens Neuromodulation Position with $250m Nevro Acquisition

Globus Medical has agreed to acquire spinal cord stimulation company Nevro for $250m to strengthen its position in the neuromodulation sector. The deal represents a 27% premium to Nevro's 90-day volume-weighted average price and is expected to close in Q2 2025. Nevro's entry into Globus will enable it to expand into new markets for future growth and gain access to world-class technologies. The acquisition will strengthen Globus' position as a market leader in rechargeable spinal cord stimulation.

Globus Medical (NYSE: GMED), a leading medical device manufacturer with a market capitalization of $11.9 billion, has recently announced its intent to acquire Nevro Corporation (NYSE: NVRO), a pioneering spinal cord stimulation (SCS) company, for $250 million [1]. This strategic move aims to reinforce Globus Medical's position in the neuromodulation sector, a rapidly expanding market expected to reach $12.6 billion by 2034 [1].

The deal, which represents a 27% premium to Nevro's 90-day volume-weighted average price, will enable Globus Medical to expand into new markets and gain access to world-class, differentiated technologies [1]. This acquisition follows Globus Medical's strong financial results, indicating a confident and strategic approach to business growth.

SCS, a subsegment of neuromodulation, is the largest contributor to the overall market, accounting for approximately $4.6 billion by 2034 [1]. In the United States, where SCS holds a significant market share, the market is projected to grow at a rate of 6% annually over the next five years [1].

Globus Medical's entry into the neuromodulation sector is an interesting development, given the market's rapid growth and the dominance of established players such as Boston Scientific, Medtronic, and Abbott [1]. However, with this acquisition, Globus Medical aims to leverage Nevro's expertise and technologies to establish a strong foothold in the market and provide significant benefits to its customers.

The global neuromodulation device market is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2034 [2]. This growth can be attributed to the increasing prevalence of chronic pain conditions, the rising adoption of minimally invasive procedures, and the development of advanced technologies in neuromodulation.

In conclusion, Globus Medical's acquisition of Nevro represents a strategic move to expand its reach in the neuromodulation sector, a rapidly growing market with significant potential. By leveraging Nevro's expertise and technologies, Globus Medical aims to establish a strong foothold in the market and provide significant benefits to its customers.

References:
[1] Medical Device Network. (2023, February 28). Globus Medical strengthens SCS market position with $250m Nevro deal. Retrieved March 1, 2023, from https://www.medicaldevice-network.com/news/globus-medical-strengthens-scs-market-position-with-250m-nevro-deal/
[2] Grand View Research. (2022, October 3). Neuromodulation Devices Market Size, Share & Trends Analysis Report By Product (Transcutaneous Electrical Nerve Stimulation (TENS), Spinal Cord Stimulation (SCS), Vagus Nerve Stimulation (VNS), Others), By Application (Pain Management, Neuromodulation for Parkinson's Disease, Others), By End-Use (Hospitals, Clinics, Home Care Settings), By Region, and Segment Forecasts, 2022 - 2030. Retrieved March 1, 2023, from https://www.grandviewresearch.com/industry-analysis/neuromodulation-devices-market