Stryker Archives - Page 17 of 18 - Medical Design Sourcing

Stryker dips despite Street-beating Q2

Stryker (NYSE:SYK) shares dipped slightly today despite second-quarter results that came in ahead of the consensus forecast.

The Kalamazoo, Mich.-based company posted losses of -$83 million, or -22¢ per share, on sales of $2.8 billion for the three months ended June 30, 2020, for a bottom-line slide from profits of $480 million last year into the red on a sales decline of 24.3%.

Adjusted to exclude one-time items, earnings per share were 64¢, 9¢ ahead of Wall Street, where the company’s revenue numbers beat analysts’ estimates by 5.3%.

The orthopedic device maker posted noteworthy sales decreases across all three of its segments in large part due to the delays in elective procedures as a result of the COVID-19 pandemic. Stryker posted a a -29.9% drop in orthopedics, a -29.6% decrease in neurotechnology/spine and a -17.3% decline in medical/surgical.

“Our second quarter results were negatively impacted by COVID-19, but I am please…

Stryker lands government contract for endoscopy business

Stryker (NYSE:SYK) has been awarded a Defense Logistics Agency contract for up to 10 years and $225 million for patient monitoring and capital equipment systems and accessories.

Stryker’s San Jose, Calif.-based endoscopy business beat 51 other applicants for the contract, according to a U.S. Department of Defense announcement. The 5-year base contract has a 5-year option period.

Get the full story on our sister site, Medical Design & Outsourcing.

MedTech 100 roundup: Stocks tick back up to open July

After a solid start to July, the medtech industry continues to experience a stock market roller coaster amid the COVID-19 pandemic.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — sat at 84.25 points at the end of last week (July 3). That total represents a 2.9% increase from the 81.88-point total at the same time a week prior (June 26), resulting in another significant direction change, following a -3.7% dip just one week before.

Meanwhile, the S&P 500 Index saw a 4% bump from June 26 to July 2 (market close before a holiday), and the Dow Jones Index fared similarly well, posting a 3.2% increase over the same period of time. Both indexes mirrored the medtech industry’s changes, having each posted decreases the week prior.

Medtech’s lowest point during the COVID-19 pandemic remains at 62.13 on March 23. Since then, the industry’s stocks have experienced 35.6% growth in total. Stocks in the indu…

UK officials question market impact of Stryker-Wright Medical merger

The United Kingdom Competition & Markets Authority (CMA) issued a statement of concern over the impact of the purchase of Wright Medical (NSDQ:WMGI) by Stryker (NYSE:SYK).

CMA believes that, should the $4.7 billion acquisition go through, it would have a “negative impact on vulnerable patients in the U.K. who need ankle replacements,” according to a news release.

After a Phase 1 investigation, the CMA observed that the purchase would result in the merged entity obtaining a share of over 90% in the total ankle replacement prostheses market in the U.K., leading to concerns over a lack of competition from other suppliers and potentially higher prices or fewer choices for hospitals and their patients.

CMA launched a probe into the acquisition in May, saying it will decide by July 15, 2020,if it will launch the second phase of its investigation. It now says Stryker and Wright have until July 7 to address its concerns through the offer of under…

Stryker extends tender offer for all Wright Medical shares

Stryker (NYSE:SYK) announced today that it extended the offering period of its cash tender offer for all outstanding shares of Wright Medical (NSDQ:WMGI).

The company announced its acquisition of Wright Medical in November 2019. Since then, the FTC increased its scrutiny of the proposed merger in January, a Wright Medical shareholder filed a proposed class-action lawsuit to block the acquisition later that month and the U.K. began a probe into the merger last month.

Also in May, Stryker announced that it entered into an underwriting agreement in connection with a $2.3 billion offering set to finance the acquisition.

Stryker’s indirect, wholly-owned subsidiary, Stryker B.V., officially extended the offering period until an expiration date of 5 p.m. ET on Aug. 31, 2020, unless it is further extended or earlier terminated.

According to a news release, as of June 26, more than 10.4 million Wright Medical ordinary shares, representing 8.1% of the…

MedTech 100 roundup: Another rebound as markets continue to fluctuate

Medtech stocks rebounded from a significant dip earlier in June last week, continuing to highlight the topsy-turvy nature of the markets during the COVID-19 pandemic.

MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — sat at 85.00 points at the end of last week (June 19). That total represents a 3.5% increase from the 82.12-point total at the same time a week prior (June 12), demonstrating another uptick after a -6% drop-off just one week before.

Meanwhile, the S&P 500 Index experienced a 1.9% increase from June 12 to June 19, and the Dow Jones Index fared slightly worse with a 1% increase over the same period of time. Both indexes mirrored medtech’s rebound, having posted -4.8% and -5.6% decreases, respectively, the week before.

Medtech’s lowest point during the COVID-19 pandemic remains at 62.13 on March 23. Since then, the industry’s stocks have experienced 36.8% growth in total. Stocks i…

DeviceTalks Weekly: Stryker CEO Kevin Lobo says medtech can increase workforce diversity

DeviceTalks Weekly

This week’s DeviceTalks Weekly podcast episode talks with industry leaders about improving worker diversity and developing new ways to treat COVID-19 patients.

Kevin Lobo, chairman and CEO of Stryker, explains how his company — and the industry group AdvaMed that he currently leads — has been working to increase diversity of its workforce, particularly in senior and sales positions.

Lobo is serving a two-year term as chairman of AdvaMed. In this interview, he speaks specifically to how Stryker is tracking progress, where it has come up short and how it’s working to help workers identify their own biases.

Lobo also says Stryker is poised to regain momentum after the pandemic.

Next, Kevin Sayer, executive chairman, CEO and president of Dexcom, says the company’s continuous glucose monitors are finding a home in hospitals as they help monitor the health of COVID-19 patie…

CEO Kevin Lobo says Stryker ready to regain lost momentum

Stryker CEO Kevin Lobo (Image from Stryker)

Stryker (NYSE:SYK) CEO Kevin Lobo said today that the company is preparing to restart “a number” of idled production lines next month as it climbs out the crater created by COVID-19.

In an interview on the DeviceTalks Weekly Podcast, Lobo said the company is rebounding from its low point in April, when its sales fell almost 40%.

“May was better than April. And June is tracking to be better than May,” Lobo said. “As the economies open up, business is starting to return, which is very exciting.”

Just over 40% of Stryker’s $14.9 billion in revenue comes from sales of hip, knee, spine and other related procedures, according to its 2019 annual report. In the deepest days of the pandemic, these elective procedures were cancelled so hospitals could commit resources to treating coronavirus patients while also limiting the risk of exposing non-Covid-19 patient…

Moody’s lowers its medical device industry earnings forecast

Medical device industry earnings will remain flat over the next 12 to 18 months as people hold off on medical procedures amid the COVID-19 pandemic and resulting recession, according to a new report from Moody’s.

Moody’s had previously projected of 2–4% annual growth.

“While underlying positive trends remain, including ongoing innovation and favorable longterm demographics, we expect some consumers will be slow to return to the healthcare system,” the Moody’s analysts said in the report, out June 11.

“While many procedures are already being rescheduled in certain regions, some consumers will be unable to pay for their procedures due to the economic downturn, as well as their unwillingness to engage with the healthcare system while the coronavirus outbreak persists.”

The predictions from Moody’s come at the same time that medtech industry stocks are taking a hit, along with the overall markets, amid i…

FDA restricts re-use of certain respirators for COVID-19

Certain respirators made in China and respirators with exhalation valves should not be decontaminated for re-use by healthcare workers, the FDA announced today.

The agency revised these respirators’ emergency use authorizations (EUAs) to reflect the changes. The particular respirators from China “may vary in their design and performance,” the FDA said, basing its decision on test results from the National Institute for Occupational Safety and Health (NIOSH).

The agency also revised the EUAs for certain decontamination systems so they are are no longer authorized to decontaminate non-NIOSH-approved respirators manufactured in China. These systems now may only decontaminate NIOSH-approved, non-cellulose respirators that do not have an exhalation valve as well as certain imported, non-NIOSH-approved respirators with exhalation valves.

Manufacturers with revised EUAs include Stryker, Duke, Advanced Sterilization Products, Sterilucent, Steri…

Stryker announces $2.3b offering to finance Wright Medical purchase

Stryker (NYSE:SYK) announced that it entered into an underwriting agreement in connection with a $2.3 billion offering set to finance its purchase of Wright Medical (NSDQ:WMGI).

The underwriting agreement is with BofA Securities, Citigroup Global Markets and Wells Fargo Securities. The offering, which Stryker expects to be completed on June 4, will result in the company issuing $640 million in 1.15% notes due 2025, $1 billion in 1.95% notes due 2030 and $650 million in 2.9% notes due 2050, according to a news release.

Stryker expects to collect nearly $2.3 billion from the offering. Combined with the proceeds from the company’s $2.6 billion (€2.4 billion) notes offering completed in December 2019, the funds are earmarked for consummating the acquisition of Wright Medical and for related fees and expenses. Any remainder is set to be used for general corporate purposes.

The company announced its acquisition of Wright Medical in November 2019. Since t…

U.K. probing Stryker-Wright Medical merger

The U.K. Competition and Markets Authority has begun an investigation into the proposed $4.7 billion merger of Stryker (NYSE:SYK) and Wright Medical (NSDQ:WMGI).

Announced in November 2019, the merger would have Stryker pay $30.75 per share to acquire all of the issues and outstanding ordinary shares of Wright Medical. With outstanding convertible notes, total enterprise value is set at $5.4 billion. At the time of the announcement, the companies expected the acquisition to close in the second half of 2020.

The U.K. antitrust body’s investigation follows one opened in December 2019 by the U.S. Federal Trade Commission. The Competition and Markets Authority said it will decide by July 15, 2020, whether it will launch a second phase of its investigation.

Kalamazoo, Mich.-based Stryker is the world’s largest orthopedic device company, with sales of $14.89 billion in 2019. Wright Medical, based in Amsterdam, posted net sales of $920.9 million for…