Stryker Betting On MAKO And Anti-Stroke Devices, Planning More Acquisitions To Drive Growth
By Jof Enriquez,
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Stryker considers its MAKO robotic surgery system and its clot removal devices as growth accelerators for the company through 2016. The artificial knee and hip implants maker is also cautiously eyeing more M&A targets after it recently acquired a number of assets.
In a recent conference call with investors, Stryker reported that the company delivered 20 MAKO robots in Q4 last year and nine during the first quarter, for both existing customers and competitive accounts. A slight supply disruption is expected to be resolved by the second quarter, and will not hinder momentum.
The company also said recent clinical data on the effectiveness of device-based stroke therapy will drive demand on clot removal devices — a product segment it entered by acquiring Concentric Medical.
“And so I would see MAKO as one growth accelerator. Second, I would see the acute ischemic stroke as another area that with all the great data that’s coming out would be another engine,” said Stryker chairman and CEO Kevin Lobo on an earnings call.
Stryker acquired orthopedic robotic surgery pioneer MAKO Surgical for $1.5 billion in 2013. The company currently offers partial knee and total hip solutions using the MAKO platform. The company plans a MAKO total knee implant offering by 2016.
In 2011, Stryker purchased Concentric for $135 million in cash. Concentric helped pioneer clot retrieval devices and developed the Trevo Retriever device for ischemic stroke.
As noted in a previous Med Device Online article, Stryker had acquired more companies in the past year. It purchased healthcare equipment manufacturer Berchtold Holding AG in April 2014, Small Bone Innovations (SBI) for $375 million in July 2014, and CHG Hospital Beds in January of this year. Lobo reiterated that M&As will continue to be part of Stryker’s plans.
“We really look to strengthen our businesses and we are looking to do acquisitions,” Lobo told analysts. “We want to strengthen our market position in the areas where we are playing today and that could be big deals, small deals or medium sized deals, but we want to make sure we are strengthening our position and encouraging our divisions to continue to drive growth.”
Stryker was linked to a potential transaction to merge with fellow orthopedic manufacturer Smith & Nephew in recent months, but no deal has been announced.
According to Stryker’s first quarter 2015 financial report, consolidated net sales grew 3.2% to $2.4 billion in the first quarter
compared to the previous year. Net sales grew by 7.1% due to increased unit volume and changes in product mix and 1.9% as a result of acquisitions. Sales were driven by its Orthopaedics, MedSurg, and Neurotechnology and Spine businesses.