08.04.23
Rank: #1 (Last year: #1)
$18.45 Billion
Prior Fiscal: $17.11 Billion
Percentage Change: +7.8%
R&D Expenditure: $1.45B
Best FY22 Quarter: Q4 $5.20B
Latest Quarter: Q1 $4.78B
No. of Employees: 51,000
Global Headquarters: Kalamazoo, Mich.
KEY EXECUTIVES:
Kevin Lobo, Chair & CEO
Yin Becker, VP, Chief Corporate Affairs Officer
Glenn S. Boehnlein, VP, CFO
Katy Fink, VP, Chief Human Resources Officer
Rob Fletcher, VP, Chief Legal Officer
Viju Menon, Group President, Global Quality and Operations
Andy Pierce, Group President, MedSurg and Neurotechnology
Spencer Stiles, Group President, Orthopaedics and Spine
Company acquisitions in the medical device space are accomplished for a variety of reasons. They can expand clinical coverage of a specific condition with new technology innovations developed by another firm. They can expand the reach a company has by bringing an organization in house with a customer base in a new region of the world. They can also be used to rapidly establish a foothold within a medical device segment not core to the acquiring company. In most of these instances, however, the move brings a medical device portfolio into the fold.
Stryker’s transaction, which was announced just days after the start of its 2022 fiscal year, presented a slightly different scenario. Instead of bolstering its product portfolio with a new surgical instrument or innovative device, the company sought to aid nurses and hospital workers with a better communication platform. It paid approximately $3 billion for Vocera Communications to do just that.
Founded in 2000, Vocera’s focus is on digital care coordination and communication. It provides a solution to facilitate a connection between care staff and disparate data-generating medical devices in order to enhance efficiency. The company’s system, which is made up of both software and hardware technologies, also enables secure communication between patients and their families. According to the company, “the combined business will further advance Stryker’s focus on preventing adverse events throughout the continuum of care.”
“This acquisition provides significant opportunities to advance innovations and accelerate our digital aspirations,” said Kevin Lobo, chair and CEO of Stryker. “We welcome the Vocera team to Stryker and look forward to working together to enable safer patient care and help our customers improve outcomes.”
Vocera’s communication capabilities include the aforementioned family connection, as well as secure text messaging, alarm management, pager replacement, and integration with more than 150 clinical and operational systems used in hospitals. It can be used within healthcare facilities such as hospitals, long-term care centers, and veterinary care, while also being a fit for retail, hospitality, education, and energy.
ANALYST INSIGHTS: Stryker continues to crush it with its Mako Surgical Robotic platform in orthopedics. Combining their increasing robotic footprint plus the increase in elective procedures will give Stryker impressive tailwinds heading into 2024. When this happens, watch for some type of interesting M&A activity as Stryker is at its best in aggressive inorganic activity when it has tailwinds propping up its quarter-to-quarter results.
Then, less than a week after the close of the transaction, it was announced Vocera was offering its latest evolution in hands-free communication for healthcare workers. The Minibadge is a wearable, voice-driven device that enables the hands-free functionality.
According to the company, during human-centered design sessions and beta testing for the Minibadge, Major Health Partners (MHP) team members expressed their delight with the device, emphasizing its ease of use, the long life of the battery, and its small, sleek form factor. MHP enables hospital leaders and frontline workers to collaborate to find innovative ways to improve the safety and well-being of their patients, families, staff, and community.
“For more than 21 years, Vocera has led the way in hands-free communication, innovating on voice-driven solutions that simplify workflows and improve the safety and well-being of our customers and the people they serve,” said Dave Lively, senior vice president of product management at Vocera. “The Minibadge is a perfect example of that evolution. Its seamless compatibility with smartphones provides a valuable ‘and’ rather than ‘or’ option for organizations—empowering a broader spectrum of team members who need the flexibility to choose the best device for their assignment or task.”
While the announcement marked Vocera’s first product launch under the Stryker banner, it was hardly the only release made by the acquiring organization. Stryker orchestrated a number of releases during the year.
Days prior to the Vocera launch, Stryker introduced its new PROstep MICA SOLO Guide at the American College of Foot and Ankle Surgery 2022 meeting. The all-in-one procedure guide is used during PROstep MICA minimally invasive bunion procedures and is designed for use by a solo surgeon, potentially eliminating the need for additional surgical assistance during the operation.
Mid-March saw the debut of the Power-PRO 2 powered ambulance cot—the first connected offering of its kind in the industry, according to the company. The cot offers improved maneuverability, increased safety, and connectivity tools to help optimize time and budget. In addition to benefits highlighted from ergonomic and flexible design features, it also provides remote “last known cot location” tracking with the company’s Smart Equipment Management dashboard.
At the 2022 American Academy of Orthopaedic Surgeons, the Insignia Hip Stem was introduced. It was engineered to optimize patient fit and surgeon ease of implantation in muscle-sparing approaches for total hip and hemiarthroplasty procedures. Further, the Insignia is compatible with Mako SmartRobotics utilizing Total Hip 4.1 software, which allows surgeons to use data from a 3D CT-based plan to capture each patient’s unique anatomy.
Stryker also offered a solution for high-demand foot and ankle applications in the form of its EasyFuse Dynamic Compression System. Created using nitinol, this foot and ankle staple system was designed to decrease surgical complexity, provide strong dynamic-compression implants, and reduce waste in the operating room.
The first day of June marked a clearance from the FDA for the Q Guidance System for spine applications. The product, when used with the Spine Guidance Software, is an advanced planning and intraoperative guidance system designed to enable open or percutaneous computer-assisted surgery. The Spine Guidance Software is the first spine navigation software, according to Stryker, to receive clearance from the FDA for use with pediatric patients aged 13 and older. The company then launched the system at the end of September and featured it at several meetings in October.
Seemingly taking the summer off in terms of product introductions, the organization announced a new technology on the first of September with the launch of its new Gamma4 Hip Fracture Nailing System. The nail is indicated for the treatment of stable and unstable fractures as well as for stabilization of bones and correction of bone deformities in the intracapsular, trochanteric, subtrochanteric, and shaft regions of the femur (including osteoporotic and osteopenic bone).
Those attending the 2022 American Orthopaedic Foot & Ankle Society Annual Meeting bore witness to the launch of the Pulse Intelligent Delivery Platform. The technology is a full-circle product and fulfillment offering optimized for high-volume foot and ankle procedures in the ambulatory surgery center (ASC) setting.
At the same event, Stryker also featured its Prophecy Footprint Surgical Planning, which was the first surgical planning tool to provide clinical guidance on the whole foot in connection with total ankle arthroplasty, according to the organization.
A 510(k) clearance was gained from the FDA for the OptaBlate bone tumor ablation system. The September announcement explained that the addition of the OptaBlate technology to Stryker’s Interventional Spine portfolio expanded on its core competencies in vertebral augmentation and radiofrequency ablation. Further, it completed its portfolio of treatment options for metastatic vertebral body fractures. As Stryker’s first interventional oncology technology, OptaBlate optimizes all aspects of the procedure—from set-up to ablation.
Bolstering its 3D-printed interbody device portfolio, the firm presented the Monterey AL Interbody System with new pre-clinical data. The standalone device was designed for anterior lumbar interbody fusion (ALIF). It is made up of both solid and porous structures within a single implant, leveraging Stryker’s proprietary Tritanium In-Growth Technology, a material designed to mimic cancellous bone and provide an environment favorable to bone regeneration and fusion. The new data demonstrated that undifferentiated stem cells grown on Tritanium exhibited osteogenic alkaline phosphatase without requiring growth factor supplements.
Midway through December, the Citrefix Suture Anchor System was released with Citregen biomaterial to support bone regeneration and the natural healing process. Citregen is an award-winning bioresorbable material designed to mimic the chemistry and structure of native bone. Citrefix is a disposable suture anchor system that features a resorbable biomimetic anchor body. The sterile-packed set includes a cartridge with preloaded implant and eyelet, a drill bit, a drill guide, and pre-assembled inserter.
The addition of both Vocera and the array of new innovations launched, plus the continuation of a renewed demand for surgical products, resulted in another year of successful revenue growth for Stryker. While 2020 posed a small hiccup in the year-over-year growth of the company’s revenue, it has seen favorable gains since 2018 when the firm posted $13.6 billion. Compare that to 2022’s fiscal year, which was almost $18.5 billion (a 7.8% increase over the prior year), and the rise has been impressive.
Within the MedSurg and Neurotechnology unit, every business segment saw revenue headway. Instruments swelled by 8% to post $2.28 billion to the total. Endoscopy added $2.42 billion to the company’s coffers (a 13.2% rise), while Medical led all Stryker business segments in both percentage surge and 2022 revenue total (16.2% and $3.03 billion). Rounding out the tallies for the unit was Neurovascular’s modest 1.1% gain ($1.2 billion), Neuro Cranial’s 13.3% bump ($1.38 billion), and Other’s 9.2% improvement ($302 million). All-in-all, a wonderful 11.2% addition for a total of $10.61 billion.
Within sister unit Orthopaedics and Spine, total revenue expanded but not as dramatically—3.5% expansion translating to $7.84 billion. Knees was up 8% to finish at $2 billion, while the other large joint business, Hips, ballooned by 5.3% to $1.41 billion. Trauma and Extremities—the highest revenue generator for this unit—blossomed by 5.4% to land at $2.81 billion. Representing the only losses for Stryker year-over-year, Spine revenue shrunk 1.8% to $1.15 billion and Other fell 13.3% to close at $475 million.
To help ensure ongoing success with a healthy product pipeline for surgeons and other healthcare professionals, Stryker announced two new facilities during the 2022 fiscal year. It opened a research and development facility—Stryker’s Global Technology Centre (SGTC)—at the International Tech Park in Gurgaon, India. The 150,000-square-foot facility was built to help accelerate innovation in India and globally, while also further supporting the company’s mission to make healthcare better. With an intense customer focus, the center is designed to connect with healthcare professionals and develop new technologies to meet their needs. Customers can access a range of Stryker’s products and learn more about the engineering behind the company’s life-changing technologies and innovations.
Andy Pierce, group president of MedSurg and Neurotechnology, explained, “Innovation is in Stryker’s DNA. SGTC strengthens our ability to innovate and develop new products and solutions that help improve and save lives around the world. We are proud that Stryker positively impacts more than 100 million patients’ lives each year and the demand for our offerings is growing.”
Elsewhere in the world, Stryker cut the ribbon on a new, high-tech facility in Anngrove, Ireland, that will focus on additive manufacturing. The 156,000-square-foot facility will eventually house 600 jobs and is located in the same area as the company’s AMagine Institute, which is the center of excellence for additive manufacturing across Stryker. The institute develops breakthrough technologies, from early research and development to full commercial launch and scaling, and deploys these new technologies across its full portfolio of products and services.
To help showcase the innovation the company offers, Stryker opened its “OR of the Future” for customers to visit and “experience tomorrow’s OR today.” The model operating room is located within the organization’s Flower Mound, Texas, facility. According to the company, it offers a one-of-a-kind interactive experience for customers to conceptualize new OR design and technology. Constructed with patient safety and OR uptime in mind, the model is designed and integrated to help enhance protection against infection and increase cleanability, while employing intelligent technology and time-efficiency components.
“The OR of the Future transforms the traditional operating room into a modern, state-of-the-art environment. Seeing this model OR allowed us to envision a space that empowers surgical teams and allows them to focus on what matters most—delivering quality, best-in-class patient care,” said Jenny Niblock, chief clinical officer of Citizens Medical Center in Kansas.
$18.45 Billion
Prior Fiscal: $17.11 Billion
Percentage Change: +7.8%
R&D Expenditure: $1.45B
Best FY22 Quarter: Q4 $5.20B
Latest Quarter: Q1 $4.78B
No. of Employees: 51,000
Global Headquarters: Kalamazoo, Mich.
KEY EXECUTIVES:
Kevin Lobo, Chair & CEO
Yin Becker, VP, Chief Corporate Affairs Officer
Glenn S. Boehnlein, VP, CFO
Katy Fink, VP, Chief Human Resources Officer
Rob Fletcher, VP, Chief Legal Officer
Viju Menon, Group President, Global Quality and Operations
Andy Pierce, Group President, MedSurg and Neurotechnology
Spencer Stiles, Group President, Orthopaedics and Spine
Company acquisitions in the medical device space are accomplished for a variety of reasons. They can expand clinical coverage of a specific condition with new technology innovations developed by another firm. They can expand the reach a company has by bringing an organization in house with a customer base in a new region of the world. They can also be used to rapidly establish a foothold within a medical device segment not core to the acquiring company. In most of these instances, however, the move brings a medical device portfolio into the fold.
Stryker’s transaction, which was announced just days after the start of its 2022 fiscal year, presented a slightly different scenario. Instead of bolstering its product portfolio with a new surgical instrument or innovative device, the company sought to aid nurses and hospital workers with a better communication platform. It paid approximately $3 billion for Vocera Communications to do just that.
Founded in 2000, Vocera’s focus is on digital care coordination and communication. It provides a solution to facilitate a connection between care staff and disparate data-generating medical devices in order to enhance efficiency. The company’s system, which is made up of both software and hardware technologies, also enables secure communication between patients and their families. According to the company, “the combined business will further advance Stryker’s focus on preventing adverse events throughout the continuum of care.”
“This acquisition provides significant opportunities to advance innovations and accelerate our digital aspirations,” said Kevin Lobo, chair and CEO of Stryker. “We welcome the Vocera team to Stryker and look forward to working together to enable safer patient care and help our customers improve outcomes.”
Vocera’s communication capabilities include the aforementioned family connection, as well as secure text messaging, alarm management, pager replacement, and integration with more than 150 clinical and operational systems used in hospitals. It can be used within healthcare facilities such as hospitals, long-term care centers, and veterinary care, while also being a fit for retail, hospitality, education, and energy.
ANALYST INSIGHTS: Stryker continues to crush it with its Mako Surgical Robotic platform in orthopedics. Combining their increasing robotic footprint plus the increase in elective procedures will give Stryker impressive tailwinds heading into 2024. When this happens, watch for some type of interesting M&A activity as Stryker is at its best in aggressive inorganic activity when it has tailwinds propping up its quarter-to-quarter results.
—Dave Sheppard, Co-Founder and Managing Director, MedWorld Advisors
Then, less than a week after the close of the transaction, it was announced Vocera was offering its latest evolution in hands-free communication for healthcare workers. The Minibadge is a wearable, voice-driven device that enables the hands-free functionality.
According to the company, during human-centered design sessions and beta testing for the Minibadge, Major Health Partners (MHP) team members expressed their delight with the device, emphasizing its ease of use, the long life of the battery, and its small, sleek form factor. MHP enables hospital leaders and frontline workers to collaborate to find innovative ways to improve the safety and well-being of their patients, families, staff, and community.
“For more than 21 years, Vocera has led the way in hands-free communication, innovating on voice-driven solutions that simplify workflows and improve the safety and well-being of our customers and the people they serve,” said Dave Lively, senior vice president of product management at Vocera. “The Minibadge is a perfect example of that evolution. Its seamless compatibility with smartphones provides a valuable ‘and’ rather than ‘or’ option for organizations—empowering a broader spectrum of team members who need the flexibility to choose the best device for their assignment or task.”
While the announcement marked Vocera’s first product launch under the Stryker banner, it was hardly the only release made by the acquiring organization. Stryker orchestrated a number of releases during the year.
Days prior to the Vocera launch, Stryker introduced its new PROstep MICA SOLO Guide at the American College of Foot and Ankle Surgery 2022 meeting. The all-in-one procedure guide is used during PROstep MICA minimally invasive bunion procedures and is designed for use by a solo surgeon, potentially eliminating the need for additional surgical assistance during the operation.
Mid-March saw the debut of the Power-PRO 2 powered ambulance cot—the first connected offering of its kind in the industry, according to the company. The cot offers improved maneuverability, increased safety, and connectivity tools to help optimize time and budget. In addition to benefits highlighted from ergonomic and flexible design features, it also provides remote “last known cot location” tracking with the company’s Smart Equipment Management dashboard.
At the 2022 American Academy of Orthopaedic Surgeons, the Insignia Hip Stem was introduced. It was engineered to optimize patient fit and surgeon ease of implantation in muscle-sparing approaches for total hip and hemiarthroplasty procedures. Further, the Insignia is compatible with Mako SmartRobotics utilizing Total Hip 4.1 software, which allows surgeons to use data from a 3D CT-based plan to capture each patient’s unique anatomy.
Stryker also offered a solution for high-demand foot and ankle applications in the form of its EasyFuse Dynamic Compression System. Created using nitinol, this foot and ankle staple system was designed to decrease surgical complexity, provide strong dynamic-compression implants, and reduce waste in the operating room.
The first day of June marked a clearance from the FDA for the Q Guidance System for spine applications. The product, when used with the Spine Guidance Software, is an advanced planning and intraoperative guidance system designed to enable open or percutaneous computer-assisted surgery. The Spine Guidance Software is the first spine navigation software, according to Stryker, to receive clearance from the FDA for use with pediatric patients aged 13 and older. The company then launched the system at the end of September and featured it at several meetings in October.
Seemingly taking the summer off in terms of product introductions, the organization announced a new technology on the first of September with the launch of its new Gamma4 Hip Fracture Nailing System. The nail is indicated for the treatment of stable and unstable fractures as well as for stabilization of bones and correction of bone deformities in the intracapsular, trochanteric, subtrochanteric, and shaft regions of the femur (including osteoporotic and osteopenic bone).
Those attending the 2022 American Orthopaedic Foot & Ankle Society Annual Meeting bore witness to the launch of the Pulse Intelligent Delivery Platform. The technology is a full-circle product and fulfillment offering optimized for high-volume foot and ankle procedures in the ambulatory surgery center (ASC) setting.
At the same event, Stryker also featured its Prophecy Footprint Surgical Planning, which was the first surgical planning tool to provide clinical guidance on the whole foot in connection with total ankle arthroplasty, according to the organization.
A 510(k) clearance was gained from the FDA for the OptaBlate bone tumor ablation system. The September announcement explained that the addition of the OptaBlate technology to Stryker’s Interventional Spine portfolio expanded on its core competencies in vertebral augmentation and radiofrequency ablation. Further, it completed its portfolio of treatment options for metastatic vertebral body fractures. As Stryker’s first interventional oncology technology, OptaBlate optimizes all aspects of the procedure—from set-up to ablation.
Bolstering its 3D-printed interbody device portfolio, the firm presented the Monterey AL Interbody System with new pre-clinical data. The standalone device was designed for anterior lumbar interbody fusion (ALIF). It is made up of both solid and porous structures within a single implant, leveraging Stryker’s proprietary Tritanium In-Growth Technology, a material designed to mimic cancellous bone and provide an environment favorable to bone regeneration and fusion. The new data demonstrated that undifferentiated stem cells grown on Tritanium exhibited osteogenic alkaline phosphatase without requiring growth factor supplements.
Midway through December, the Citrefix Suture Anchor System was released with Citregen biomaterial to support bone regeneration and the natural healing process. Citregen is an award-winning bioresorbable material designed to mimic the chemistry and structure of native bone. Citrefix is a disposable suture anchor system that features a resorbable biomimetic anchor body. The sterile-packed set includes a cartridge with preloaded implant and eyelet, a drill bit, a drill guide, and pre-assembled inserter.
The addition of both Vocera and the array of new innovations launched, plus the continuation of a renewed demand for surgical products, resulted in another year of successful revenue growth for Stryker. While 2020 posed a small hiccup in the year-over-year growth of the company’s revenue, it has seen favorable gains since 2018 when the firm posted $13.6 billion. Compare that to 2022’s fiscal year, which was almost $18.5 billion (a 7.8% increase over the prior year), and the rise has been impressive.
Within the MedSurg and Neurotechnology unit, every business segment saw revenue headway. Instruments swelled by 8% to post $2.28 billion to the total. Endoscopy added $2.42 billion to the company’s coffers (a 13.2% rise), while Medical led all Stryker business segments in both percentage surge and 2022 revenue total (16.2% and $3.03 billion). Rounding out the tallies for the unit was Neurovascular’s modest 1.1% gain ($1.2 billion), Neuro Cranial’s 13.3% bump ($1.38 billion), and Other’s 9.2% improvement ($302 million). All-in-all, a wonderful 11.2% addition for a total of $10.61 billion.
Within sister unit Orthopaedics and Spine, total revenue expanded but not as dramatically—3.5% expansion translating to $7.84 billion. Knees was up 8% to finish at $2 billion, while the other large joint business, Hips, ballooned by 5.3% to $1.41 billion. Trauma and Extremities—the highest revenue generator for this unit—blossomed by 5.4% to land at $2.81 billion. Representing the only losses for Stryker year-over-year, Spine revenue shrunk 1.8% to $1.15 billion and Other fell 13.3% to close at $475 million.
To help ensure ongoing success with a healthy product pipeline for surgeons and other healthcare professionals, Stryker announced two new facilities during the 2022 fiscal year. It opened a research and development facility—Stryker’s Global Technology Centre (SGTC)—at the International Tech Park in Gurgaon, India. The 150,000-square-foot facility was built to help accelerate innovation in India and globally, while also further supporting the company’s mission to make healthcare better. With an intense customer focus, the center is designed to connect with healthcare professionals and develop new technologies to meet their needs. Customers can access a range of Stryker’s products and learn more about the engineering behind the company’s life-changing technologies and innovations.
Andy Pierce, group president of MedSurg and Neurotechnology, explained, “Innovation is in Stryker’s DNA. SGTC strengthens our ability to innovate and develop new products and solutions that help improve and save lives around the world. We are proud that Stryker positively impacts more than 100 million patients’ lives each year and the demand for our offerings is growing.”
Elsewhere in the world, Stryker cut the ribbon on a new, high-tech facility in Anngrove, Ireland, that will focus on additive manufacturing. The 156,000-square-foot facility will eventually house 600 jobs and is located in the same area as the company’s AMagine Institute, which is the center of excellence for additive manufacturing across Stryker. The institute develops breakthrough technologies, from early research and development to full commercial launch and scaling, and deploys these new technologies across its full portfolio of products and services.
To help showcase the innovation the company offers, Stryker opened its “OR of the Future” for customers to visit and “experience tomorrow’s OR today.” The model operating room is located within the organization’s Flower Mound, Texas, facility. According to the company, it offers a one-of-a-kind interactive experience for customers to conceptualize new OR design and technology. Constructed with patient safety and OR uptime in mind, the model is designed and integrated to help enhance protection against infection and increase cleanability, while employing intelligent technology and time-efficiency components.
“The OR of the Future transforms the traditional operating room into a modern, state-of-the-art environment. Seeing this model OR allowed us to envision a space that empowers surgical teams and allows them to focus on what matters most—delivering quality, best-in-class patient care,” said Jenny Niblock, chief clinical officer of Citizens Medical Center in Kansas.