Recent Product Launches Expand Stryker’s Orthopedics Business – Market Realist

Strykers Recent Developments Strengthen Its Market Position PART 4 OF 7

In 1Q17, Stryker (SYK) reported YoY (year-over-year) growth of ~18.5%. One of the contributing factors to its growth is the companys innovative product portfolio. Stryker has been expanding its product portfolio through strategic acquisitions and internal research and development. Stryker invests ~6.5% of its total revenues in research and development.

Orthopedics is the second-largest contributor to the companys sales. The MedSurg segment is the largest contributor. Foot and ankle sales are one of the strong growth businesses in Strykers Orthopedics segment. It has been registering double-digit growth in sales for the last few years. Stryker has positioned itself as the leader in the foot and ankle device business in the US. Zimmer Biomet Holdings (ZBH), Smith & Nephew (SNN), and Integra LifeSciences (IART) are some of the other leading players in the foot and ankle business.

Investors seeking exposure to Stryker can invest in theVanguard Dividend Appreciation ETF (VIG), which holds ~1.5% of its total holdings in Stryker.

On June 28, 2017, Stryker announced the launch of its Hoffmann LRF Hexapod application and hardware. The product features an advanced measurement tool that provides solutions for correcting deformities and limb reconstruction by uploading the patients x-rays into the software.

The product is seen as the first of its kind. It offers top actuating struts instead of side struts, which enables easier reach and management of hardware.

According to Tom Popeck, vicepresident and general manager of Strykers foot and ankle business, Our team is excited to showcase the benefits of the Hoffmann LRF platform and its intuitive software at AOFAS. We believe this modern deformity correction platform helps streamline the surgical planning process and demonstrates our dedication to moving technology forward with our surgeons and patients best interest in mind.

In the next part of this series, well take a look at the lawsuit that the company recently won against Zimmer Biomet Holdings.

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Recent Product Launches Expand Stryker's Orthopedics Business - Market Realist