Issue link: https://beckershealthcare.uberflip.com/i/1242960
29 DEVICES & IMPLANTS NuVasive to trim exec pay, maintain R&D spend during pandemic: 5 insights By Angie Stewart N uVasive is reducing executive and board member compen- sation and taking other temporary cost-cutting measures during the COVID-19 pandemic, which has significantly lowered elective procedure volumes. Five things to know: 1. e spine device company had a strong cash position at the end of the first quarter, with more than $500 million in cash on hand, accord- ing to preliminary results released April 14. 2. Its first-quarter revenue is estimated to fall in the range of $259 mil- lion to $261 million, representing a year-over-year decline of 5 to 5.7 percent. 3. NuVasive anticipates a "significant negative impact" on finances in the second quarter of 2020 due to elective procedure bans and stay-at- home orders across the U.S. It has withdrawn its 2020 financial guid- ance. 4. To control costs during the pandemic, NuVasive is controlling dis- cretionary spending and adjusting manufacturing capacity based on demand and government directives. However, NuVasive intends to maintain its current levels of investment in research and development. 5. The company is preparing its distribution and commercial teams to support spine surgeons performing essential sur- geries now, as well as those who will reintroduce elective sur- geries in the future. n AgNovos Healthcare spine device achieves FDA breakthrough designation By Alan Condon T he FDA awarded AgNovos Healthcare's AGN1 Local Osteo-enhancement Procedure small volume kit breakthrough device designation March 26. Three insights: 1. The AGN1 LOEP SV kit is an investigational device de- signed to treat stable vertebral compression fractures. 2. The kit features a tri-phasic implant material that is designed to couple the pace of resorption to bone for- mation so treated vertebrae are protected. 3. The tri-phasic implant material is approved in Eu- rope to treat bone loss in higher volume applications at other anatomical sites. n Globus Medical positioned to buy-into weak market By Eric Oliver D espite a 33 percent drop in value since the end of 2019, Globus Medical is in a position to leverage its assets and acquire companies in this depressed mar- ket, according to Benzinga. The COVID-19 pandemic has drastically slashed company val- uations and could potentially prevent a near-term rebound in shares. The coronavirus pandemic is also causing elective pro- cedures to be postponed, which will result in a low-demand for spine procedures. However, Globus Medical's operating profile is stronger than its peers, as the company holds $721 million in cash, no debt and a share buyback authorization around $200 million. Because of this excess, BTIG's Ryan Zimmernan said Globus is in a position to take advantage of the depressed market and buy complementa- ry assets at discounted levels. If Globus does this, BTIG believes the company could still report positive growth figures in 2020. n