This week Stryker held an analyst day where the company discussed past performance and future growth opportunities. We have some highlights below:
- Stryker is focusing heavily on the significant unmet needs in the neurovascular segment. The company reported that there are more than 800,000 strokes each year, only 13% of which are treated – making this condition a leading cause of disability and a major opportunity to improve clinical outcomes. Since the company acquired its neurovascular business from Boston Scientific in 2011, they have launched 22 devices, which includes the Trevo stent retriever. Trevo has supported worldwide development of the acute ischemic stroke market, and Stryker has announced plans to further expand their portfolio of stroke offerings. New devices include the Surpass Streamline Flow Diverter and novel aspiration solutions. Clinical and research leadership is also key to Stryker’s strategy, with multiple trials and registries ongoing in brain aneurysm, stroke and intracranial atherosclerotic disease.
- In orthopedics, Stryker highlighted extremities, which is growing at a rate just above 8% per year. The company said that opportunities for growth will come from specialized sales forces, surgeon education programs, next-generation implants and the shift in care to the outpatient setting. They also provided insight into the current state of the foot & ankle market (Stryker holds 22% of the market and is growing at 23%) and shoulder market (Stryker holds 6% of the market and is growing at 44%).
- The third product segment Stryker discussed was endoscopy, which featured the SPY imaging technology obtained from the Novadaq acquisition. This section covered the significant unmet need for better understanding of tissue vascularization for patients undergoing breast cancer surgery; Stryker says that up to 25% of mastectomy flaps may experience some degree of necrosis, which may lead to additional or longer hospitalization, additional surgeries, greater cost, loss of reconstruction options and pain.
- Stryker also described their capital deployment history and plans. The primary use of capital has been M&A, to which $8.6 billion was dedicated between 2013 and 2017. Year to date in 2018, $0.8 billion has gone into M&A, including the K2M, Entellus and and Invuity transactions.
For more information, the slides are available on Stryker’s investor page.