Following strong financial results revealed last month, US-headquartered Globus Medical has agreed to acquire spinal cord stimulation (SCS) company Nevro for $250m to reinforce its position in the neuromodulation sector.
Globus Medical, which has a market cap of $11.9bn, will buy all Nevro shares for $5.85 each, amounting to a total equity value of around $250m.
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The share purchase price represents a 27% premium to the 90-day volume-weighted average price. Globus expects the deal to close in the backend of Q2 2025.
Globus CEO Dan Scavilla said the move enables the company to “expand into new markets for future growth, while gaining access to world-class, differentiated technologies that can provide significant benefit in neuromodulation, enabling technologies, and future implant solutions”.
The global neuromodulation device market was estimated to be worth $6.6bn in 2024, with it forecast to grow to $12.6bn by 2034. SCS will contribute the most significant share to that total, around $4.6bn by 2034. Boston Scientific has 55% of the current market share, followed by Medtronic and then Abbott, as per analysis by GlobalData.
GlobalData senior medical analyst Ashley Clarke said: “It’s an interesting deal, as it is Globus’ entry into neuromodulation. Neuromodulation is a fast-growing market, and spinal cord stimulation is the top segment. Right now, for the rechargeable SCS segment, the US market accounts for close to 75% of the total market, but across the US, Europe, and APAC, the market is expected to grow 6% annually over the next five years.”
“From a company standpoint, the deal could help strengthen their position as a market leader in rechargeable SCS. We currently estimate Nevro as the leader in rechargeable SCS for the US, with Medtronic as a close second, however in Europe and APAC Nevro falls behind competitors Medtronic and Boston Scientific. Globus has a strong international network and could enable faster growth outside the US for Nevro,” Clarke added.
In September 2024, Nevro gained approval from the US Food and Drug Administration (FDA) for HFX AdaptivAI, a personalised pain management platform that uses AI. The company also sells sacroiliac joint fusion systems for lower back pain, technology it acquired after buying Vyrsa Technologies in 2023.
The company has been struggling to generate strong financials over the past year. It announced plans to lay off up to 5% of its workforce in January 2024 as part of a restructuring effort, and then reiterated that it was exploring strategic options for the business in August 2024, which included a potential sale. Nevro pointed to increased competition in the SCS arena as a reason for weakening revenue. New product offerings from Medtronic and Boston Scientific have squeezed opportunity in the market, meaning Nevro’s full-year guidance for 2025 dropped from $435-445m to $400m-$405m. Boston Scientific’s Wavewriter spinal cord stimulator systems, for example, gained access to a wider market after winning FDA approval for non-surgical back pain in February 2024.
Looking ahead to the market’s future, Clarke said: “It will be important to understand more about how patients are receiving treatment for chronic pain with SCS devices. In the US, there is a significant and growing fraction of SCS pulse generator implant procedures that are performed in ambulatory surgery centres (as outpatient procedures), which lowers overall costs associated with the procedure and makes it more accessible and appealing for patients.
“This trend has yet to be realised in other countries, but if adopted, could result in accelerated SCS demand. Globus, with a history of procedure development, minimally invasive spinal surgery, and portfolio including the robotic system for neurosurgery ExcelsiusGPS, has the resources to help Nevro develop in this space and to bring SCS procedures to more patients.”
