Assets
Structure
By early 2019, Stryker's operations are divided between three main divisions:
- Orthopaedics (endoprostheses and other orthopedic instruments);
- MedSurg (surgical products);
- Neurotechnology and Spine (technologies for neurosurgery and spine treatment).
Performance indicators
2018: Revenue growth of 9.3% to $13.6 billion
In 2018, Stryker's revenue reached $13.6 billion against $12.44 billion a year earlier. Thus, sales from the company increased by 9.3%.
In the orthopedic division (artificial hip and knee joints), revenue in 2018 increased by 5.9% to $4.99 billion.
The turnover in the surgical solutions division increased by 8.8%, reaching $6.05 billion in 2018. Sales of endoscopic equipment jumped 11.7% to $1.85 billion, and the sale of surgical instruments - by 8.6% to $1.82 billion.
The turnover from the sale of devices for neurovascular and neurosurgical operations in 2018 turned out to be $1.74 billion, which is 22.1% higher than a year ago. Technologies used in the treatment of spinal diseases brought Stryker annual revenue of $828 million. This is 10.3% more than in 2017.
The lion's share of Stryker's sales is still in the American market. There, the company's revenues in 2018 amounted to $9.85 billion against $9.06 billion a year earlier. Revenue in the rest of the countries combined increased on an annualized basis by 10.9% and exceeded $3.75 billion.
Stryker Corporation's net profit more than tripled - from $1.02 billion in 2017 to $3.55 billion a year later. The divisions' earnings are not listed in the financial statement, which the company made public on its website on January 29, 2019.
On the day the company's statements were made public, its shares rose by 5% during electronic trading after the exchange closed. The rise in quotations occurred due to the fact that the income of the manufacturer of medical equipment exceeded market expectations. From January 1 to January 29, 2019, the company's securities rose in price by 14%.[1]
The head of Stryker , Kevin Lobo, noted that in 2018 the company showed the highest organic sales growth in 10 years.
History
2023: Recognition of bribery of officials for the supply of medical equipment
The U.S. Department of Justice and the Securities and Exchange Commission (SEC) have initiated an investigation into Stryker on suspicion of violating anti-bribery law. This is stated in the SEC documentation released on May 2, 2023.
According to Stryker, the investigation concerns "certain commercial activities" in an unnamed foreign country. We are talking about possible non-compliance with the US Federal Law on Corruption Abroad (FCPA). It regulates "the facts of offering, promising, providing tangible and intangible benefits to any foreign official." In other words, the law prohibits companies from bribing foreign government officials in the interests of their business.
Stryker notes that it has sought the help of outside lawyers to conduct the investigation. Details of the case were not disclosed. The company says only that it cannot predict the outcome of the proceedings or its potential impact on business operations.
This is the third investigation into Stryker over the FCPA breach. In 2013, the company paid $13.2 million for bribing officials in Argentina, Greece, Mexico, Poland and Romania. According to the SEC, this led to an illegal profit of $7.5 million. Then, in 2018, Stryker agreed to pay $7.8 million to settle additional SEC charges. If the new suspicions of the department are confirmed, the company may face another multi-million fine.
At the same time, Stryker talks about improving the situation in the supply chains of components and equipment. According to Kevin Lobo, CEO of the company, demand for Stryker products remains strong, and restrictions related to the shortage of electronics are weakening.[2]
2022
Florida plant closure and employee layoffs
In mid-April 2022, Stryker announced it was closing a medical device plant in Florida and cutting 495 jobs in Lakeland. According to Fierce Biotech, more than two-thirds of those fired are in manufacturing assistant positions, with the rest being cleaners, manufacturing specialists and several group leaders.
The closures and layoffs are part of a multi-year initiative launched in 2021 to restructure Stryker to deliver growth. The company notified the state in October 2021 of its intention to close the facility by the end of 2023. At the same time, the company said that it would liquidate 523 jobs. At the end of December 2021, Stryker cut 22 jobs, and on March 31, 2022, confirmed its decision on further cuts. According to the notice, the total number of cuts decreased slightly from 523 to 495. None of the reduced positions fall under the relocation rights, which allow laid-off senior staff to remain in place of lower positions.
{{quote 'After careful and detailed analysis, we decided to close our Lakeland, Florida plant and relocate these operations to other Stryker units! People are one of our most important values and we will support exposed employees throughout the closure process. We hope to implement this layoff program with the least harm to our employees and society, the company said in a statement. }} The March 31, 2022 letter was sent to the rapid response coordination unit for displaced Florida workers under the federal Employee Adaptation and Retraining Act (WARN). The law requires companies to give two months "notice before a business is finally closed or 50 or more workers are laid off.[3]
Purchase of software developer Vocera Communications for $3.09 billion
In early January 2022, Stryker agreed to acquire Vocera Communications, which makes smart wearables for healthcare professionals as well as smartphone apps. The deal should be closed in the first quarter of 2022, and its total cost will be $3.09 billion. Read more here.
2021
Purchase of Gauss Surgical
In early September 2021, Stryker closed the acquisition of Gauss Surgical at a price that the companies did not disclose. Read more here.
Stryker uses 3D printing in orthopedics
In mid-August 2021, Stryker Executive Director Naomi Murray told how Stryker uses 3D printing to create unique porous materials that would otherwise be impossible. For 20 years, Stryker has used additive manufacturing specifically to produce complex orthopedic implants.
1. 3D printing drives game-changing innovation
Stryker highlights two main factors behind the use of 3D printing: freedom of design and rapid concept development. The freedom of design allows for new designs with complex, hard-to-process shapes, including hybrid structures and implants with functional porous zones. 3D printing also allows the rapid development of concepts, prototypes and implants, as the data collected during the tests match the characteristics expected during real production.
2. When using 3D printing for orthopedics, Stryker pays great attention to porous design
Porous implants are extremely important in orthopedics because they provide biological fixation and a place for normal bone healing. Stryker has become a world leader in metal 3D printing of porous implants. One of the most important solutions of the company was to maintain complete control over 3D printing technology, which made it possible to achieve the necessary functions.
3. SOMA extends orthopedic implant design boundaries
SOMA - Stryker Orthopaedics Modeling & Analytics - provides an evidence-based design approach. At the heart of SOMA is an extensive base of CT images. This database and software tools provide data for the modeling and design of individual implants, and the software package included in SOMA facilitates their measurement, installation and optimization.
4. Using Multiple Tools
In the future, the company intends to share several tools, such as the SOMA database combined with 3D printing and robotic surgery tools, which will allow surgeons to more accurately plan the operation and install implants.[4]
Selling T/Pump Patient Heating Systems Business to C2Dx
In mid-February 2021, C2Dx acquired Stryker's thermotherapy systems business called T/Pump for an undisclosed amount. The T/Pump system will be the second line of products distributed by C2Dx. Read more here.
Purchase of intraoperative sensor technology developer for robotic surgeons OrthoSensor
In early January 2021, Stryker announced the purchase of OrthoSensor and its Verasense intraoperative sensor technology, which are expected to improve the performance of Mako surgical robots. The financial terms of the deal were not disclosed. Read more here.
2020: DJO bought ankle and finger arthroplasty systems business from Stryker
In mid-November 2020, DJO acquired the total ankle and finger replacement systems business from Stryker. The acquisition includes the STAR Total Ankle Arthroplasty System as well as the TACTYS Total Finger Arthroplasty System.
The number of ankle arthroplasty surgeries in the U.S. more than doubled in 2019, thanks in part to better implants that displace fusional surgeries. In particular, the STAR system provides a complete replacement of the ankle joint with the preservation of movable support, which makes it an option for surgeons and patients. It is intended to replace the ankle joint in patients with severe osteoarthritis, post-traumatic or rheumatoid arthritis. At the same time, the modular STAR structure and a special positioning system make it possible to create 225 different joint configurations depending on the anatomical and physiological characteristics of the patient.
Stryker's portfolio of finger joint arthroplasty tools also holds a leading position in the global market. The silicone elastomer arthroplasty devices are designed to replace the affected surface of the proximal interphalangeal and metacarpophalangeal joints of the arms. Arthroplasty devices have a palmar hinge axis that creates an anatomically calibrated balance between flexor and extensor muscle systems. Semi-free SR implants mimic interphalangeal joint surfaces, promoting bone preservation and preventing joint destruction. And the TACTYS implant is a sliding modular prosthesis for total arthroplasty in deforming arthritis.[5]
2019
Purchase of orthopedic device developer Wright Medical for $4.7 billion
In mid-November 2019, Stryker announced the acquisition of Wright Medical for $4.7 billion to strengthen its position in the orthopedic device market. Read more here.
How Stryker bribed officials to sell medical equipment
In late October 2019, the Federal Ministry health care Mexico sued Stryker, accusing the company of bribing officials from the Mexican Social Security Institute to make illegal profits.
The lawsuit, filed Oct. 18 in U.S. District Court for Western Michigan, alleges Stryker violated Mexican laws governing trade with public sector businesses. Stryker used a Mexican subsidiary to pay tens of thousands of dollars in bribes "to illegally sign contracts bypassing the usual competitive system." This scheme allowed the parent company to receive more than $2.1 million in illegal profits.
Many officials who were supposed to monitor such fraudulent activities also received bribes from the company, so the lawsuit was filed only after the change of administration. The lawsuit alleges that many bribes were conducted through a specially created Mexican law firm that supplemented its invoices to cover up the fraudulent scheme. The Mexican government is demanding a fine on the campaign, reimbursement of all funds spent by public hospitals during alleged fraudulent activities, as well as termination of contracts signed in a fraudulent scheme.
 | Stryker violated public procurement procedures and, in accordance with Mexican and US law, thereby canceled all contracts concluded with the Mexican government. Therefore, Stryker must return all illegally received income, while maintaining the actual cost of the supplied equipment, the lawsuit says. |  |
In October 2013, Stryker already paid a fine of $13.2 million due to corruption abroad, and in 2018 it paid another $7.5 million.[6]
Purchase of the developer of intraoperative imaging systems Mobius Imaging
In early September 2019, Stryker announced the purchase of Mobius Imaging and its subsidiary GYS Tech/Cardan Robotics for $370 million in cash (without raising shares), which could add up to $130 million if certain market indicators are achieved. Read more here.
China imposed duties on medical equipment
On September 1, 2019, China introduced the first part of additional duties of 10% on American products worth $75 billion. And on December 15, new 5 percent fees will come into force. The duties affected some types of medical equipment, including dialysis devices, orthopedic products and hospital supplies. Read more here.
Purchase of OrthoSpace shoulder implant developer for $220 million
On March 14, 2019, Stryker Corporation announced the acquisition of OrthoSpace for $220 million. OrthoSpace's core product is an InSpace shoulder implant. It is intended for inoperable patients with rotator cuff damage to the shoulder joint, who are contraindicated by other treatments.
Purchase of the developer of the device for the treatment of chronic runny nose Arrinex
In late February 2019, Stryker Corporation announced the acquisition of the developer of the chronic runny nose device Arrinex and its Clarifix technology for the treatment of vasomotor rhinitis. Clarifix cryoablation allows removal of tissue that has been targeted by allergic triggers or stopped responding to normal regulation after excessive use of nasal vasoconstrictor drops. Read more here.
2018
Purchase of neurosurgical sealant developer
On October 1, 2018, Stryker Corporation announced the acquisition of neurosurgical sealant developer HyperBranch Medical Technology for $220 million. Read more here.
Fine of $7.8 million for giving bribes
At the end of September 2018, the US Securities and Exchange Commission (SEC) fined Stryker $7.8 million for another participation in corruption schemes.
The company violated the Foreign Corrupt Practices Act (FCPA). According to this document, any American company, as well as any non-American company, if it operates in the United States, can be prosecuted for bribing an official in any country of the world.
In the case of Stryker, she, as the SEC investigation showed, resorted to bribery in India, China and Kuwait. Moreover, employees of the Indian "daughter" erased or changed records that would indicate a violation.
The company did not admit, but did not deny, the charges against her. She will have to pay a fine, as well as leave a legal compliance consultant on staff, who will study and evaluate the work of management in terms of internal control, documentation and anti-corruption procedures.
The SEC concluded that there are not enough internal audits of financial statements at Stryker to identify improper payments when selling products in some markets.
| | Stryker's failure to apply sufficient accounting controls internally and keep the books and records correct is completely unacceptable, especially since this is not the first time the company has been accused of such violations. The imposed fine and the involvement of a controlling consultant are expedient and necessary, "said Mark Berger, director of the SEC's New York office. | |
In October 2013, Stryker was accused of bribing officials and doctors in Romania, Poland, Mexico, Greece and Argentina. Bribes were disguised as transfers for consulting expenses, charitable donations, travel costs and all kinds of commissions. Then the company was fined $13.2 million.[7]
Purchase of the manufacturer of lighting devices for mini-invasive interventions Invuity for $190 million
On September 12, 2018, Stryker announced the acquisition of all issued shares in Invuity for approximately $190 million. Read more here.
2017: $700 million Novadaq Technologies purchase
On June 19, 2017, Stryker announced the purchase of imaging technology developer for surgeons Novadaq Technologies for $701 million. The deal was closed in early September. Read more here.
2013: Mako Surgical Purchase
In 2013, Roni Abovitz sold the company to Mako Surgical (creating medical equipment) Stryker Corporation. Roni later became the founder of Magic Leap.
1979: Public Offering
In 1979 Stryker , she placed shares on the stock exchange.
1964: Renamed Stryker Corporation
In 1964, the company was renamed Stryker Corporation.
1946: Founding of The Orthopedic Frame Company
On February 20, 1946, Homer Stryker, an orthopedic surgeon from Kalamazoo, Michigan, United States, founded The Orthopedic Frame Company. The doctor's first development was the Turning Frame bed, which made it possible to ensure immobility for patients when moving without harming them.
Stock price dynamics
| Ticker company on the exchange: | NYSE:SYK |
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