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Stryker Corporation (SYK)

  • Tue, Jan. 27, 4:23 PM
    • Stryker (NYSE:SYK) Q4 results ($M): Revenues: 2,618 (+6.1%), U.S.: 1,818 (+11.1%), Intl: 800 (-3.8%); COGS: 892 (+4.7%); R&D Expense: 153 (+10.1%); SG&A Expense: 1,059 (+4.7%); Net Income: 260 (-32.6%); EPS: 0.67 (-33.7%); CF Ops: 675 (+0.4%); Quick Assets: 5,000 (+25.6%).
    • Gross Profit: 1,726 (+6.8%); COGS: 34.1% (-1.3%); Gross Margin: 65.9% (+0.7%); Operating Earnings: 514 (+10.3%); Operating Earnings Yield: 19.6% (+4.0%); Net Earnings Yield: 9.9% (-36.5%).
    • Sales by segment: Orthopedics: 1,110 (+1.7%), Knees: 363 (-2.2%), Hips: 331 (-2.9%), Trauma & Extremities: 335 (+9.1%); Medsurg: 1,054 (+12.1%), Instruments: 393 (+12.3%), Endoscopy: 390 (+10.8%), Medical: 218 (+16.0%); Neurotech & Spine: 454 (+3.9%), Neurotechnology: 262 (+9.2%), Spine: 192 (-2.5%).
    • Q1 Guidance: Non-GAAP EPS: $1.05 - 1.10.
    • 2015 Guidance: Organic sales growth: 4.5 - 6.0%; Non-GAAP EPS: $4.90 - 5.00.
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  • Mon, Jan. 26, 5:35 PM
  • Tue, Jan. 13, 6:57 PM
    • Stryker (NYSE:SYK) expects to report Q4 EPS of $1.43-$1.45, below a $1.46 consensus. Net sales growth rose 6.1% (8.6% at constant currency) to $2.6B, below a $2.63B consensus.
    • Orthopaedics sales rose 1.7%, MedSurg 12.1%, and Neurotechnology & Spine 3.9%. Organic sales growth was 5.5%. U.S. sales +11.1% to $1.8B; international -3.8% to $800M (+3.8% in constant currency).
    • The medical device maker also says it now expects forex to have a $0.20 impact on 2015 EPS, worse than prior guidance of $0.10-$0.12.
    • SYK -1.3% AH. Full Q4 results arrive after the close on Jan. 27.
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  • Mon, Jan. 5, 9:35 AM
    • Stryker (SYK -1%) acquires privately-held CHG Hospital Beds in an all-cash transaction for an undisclosed sum. CHG makes low-height hospital beds and accessories that reduce the risk of patient falls.
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  • Dec. 24, 2014, 1:19 PM
    • Osiris Therapeutics (NASDAQ:OSIR) establishes a partnership with Stryker (NYSE:SYK) to develop and commercialize Osiris' BIO4 bone matrix tissue form. Under the terms of the collaboration agreement, Stryker has an exclusive worldwide license to BIO4 and is responsible for all commercialization activities. Osiris is responsible for the manufacturing and continued research and product improvement efforts. Both firms will collaborate on the design and conduct of future clinical trials.
    • BIO4 is a bone allograft that contains both viable cells and growth factors.
    • Specific financial terms of the partnership are undisclosed.
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  • Dec. 23, 2014, 2:23 PM
    • Smith & Nephew (SNN +11.2%) jumps on a 5x surge in volume in response to anonymous reports that Stryker (SYK +1.7%) is preparing a bid. Sources close to the matter say Stryker is willing to pay as much as a 30% premium to SNN's current price.
  • Dec. 8, 2014, 5:53 PM
    • Former OtisMed Corp. (NYSE:SYK) CEO Charlie Chi admitted to intentionally distributing knee replacement surgery cutting guides after the company's application for marketing clearance had been rejected by the FDA. Mr. Chi and OtisMed entered their guilty pleas in Newark federal court.
    • To settle the criminal charges, OtisMed was fined $34.4M plus $5.16M in criminal forfeiture. In a separate civil settlement, the company agreed to pay $40M plus interest.
    • The cutting guides were used by surgeons during total knee arthroplasty or knee replacement surgery. OtisMed marketing the guide as a tool to help surgeons in making accurate bone cuts specific to the patient's anatomy based on magnetic resonance imaging performed prior to surgery. None of the claims regarding the OtisKnee device were evaluated by the FDA before the company included them in advertisements and promotional material.
    • On each of three counts, Mr. Chi faces a maximum penalty of one year in prison and a $100K fine, or twice the gain or loss from the offense.
    • Previously: Stryker settles with DOJ on OtisKnee promotion (Dec. 8, 2014)
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  • Dec. 8, 2014, 3:08 PM
    • Stryker Corp. (SYK) enters into a settlement with the U.S. Department of Justice in connection with the DOJ's civil and criminal investigations into the sales and marketing of the OtisKnee device prior to Stryker's acquisition of OtisMed in November 2009. The companies have agreed to pay the government $79,560,400 plus interest.
    • The DOJ acknowledged that OtisMed's criminal conduct occurred prior to Stryker's transaction and without Styker's knowledge or acquiescence.
    • The DOJ's allegations pertained to the promotion of a medical device that was not approved by the FDA.
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  • Nov. 24, 2014, 5:19 PM
    • Stryker (NYSE:SYK) is considering making a bid for medical device manufacturer Smith & Nephew (NYSE:SNN) as a standstill period that prevents it from making an offer nears its end, according to reports out earlier.
    • SYK is examining structuring the deal as a tax inversion, allowing it to move its legal address to the lower-tax U.K., but SYK is said to see strong strategic reasons to pursue a combination aside from tax advantages, and an inversion would not be essential to make the deal work.
    • J.P. Morgan analysts think an acquisition could be at least 7%-8% accretive to SYK's 2016 EPS, rising to 11% in 2017 and 13% in 2018, assuming a 30%-35% premium relative to the unaffected price and that the acquisition is not an inversion; however, the firm thinks SNN is not looking to sell, and a combination would not gain easy U.S. or EU anti-trust approval.
    • SNN gained 4.3% and SYK rose 1.4% in today's trading.
  • Nov. 4, 2014, 4:10 AM
    • Stryker (NYSE:SYK) has settled a lawsuit over thousands of hip implants it recalled in 2012 after patients complained of adverse reactions, including pain and swelling.
    • Stryker will pay a base amount of $300K per case to patients who had the devices surgically removed, resulting in more than $1B in costs to resolve the 4,000 suits.
    • The orthopedics company does not expect the settlement to hurt its profit.
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  • Oct. 16, 2014, 4:35 PM
    • Stryker (NYSE:SYK): Q3 EPS of $1.15 beats by $0.01.
    • Revenue of $2.39B (+11.2% Y/Y) beats by $70M.
    • Shares +.32%.
    • Press Release
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  • Oct. 16, 2014, 4:15 PM
    • Stryker (SYK -0.4%) Q3 results ($M): Total Revenues: 2,389 (+11.1%); Gross Profit: 1,567 (+6.7%); Operating Expenses: 1,063 (-16.4%); Operating Income: 450 (+300.0%); Net Income: 57 (-44.7%); EPS: 0.16 (-40.7%); Quick Assets: 4,677 (+17.5%); CF Ops: 535 (-14.0%).
    • Revenue by geography: U.S.: 1,628 (+12.4%); International: 761 (+8.4%).
    • Revenue by business: Reconstructive: 1,016 (+8.5%); MedSurg: 936 (+16.3%); Neurotech and Spine: 437 (+6.7%).
    • 2014 Guidance: Organic sales growth: 5 - 6% (unch); non-GAAP EPS: at the low end of $4.75 - 4.80.
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  • Oct. 16, 2014, 10:52 AM
    • Stryker (SYK -0.1%) reports Q3 results today after the close. The conference call will begin at 4:30 pm ET.
    • Consensus view is EPS of $1.14 on revenues of $2.32B.
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  • Oct. 15, 2014, 5:35 PM
  • Sep. 23, 2014, 7:45 AM
    • U.S. Treasury Secretary Jack Lew says that the Obama Administration is prepared to institute rules to stop tax inversion deals. If so, it will do so without a sliver of Republican support. Barclays analyst Michael Leuchten says, "Washington is playing for time. It makes them look good and it allows Congress to maybe get its act together and maybe do something on the legislative side."
    • Mr. Lew's comments have spooked the market a bit. European companies already involved in deals or rumored to be targets are all under pressure due to the perception that some of the deals already announced may be at risk.
    • The U.S. firm in the best position is Horizon Pharma (NASDAQ:HZNP). It completed its tax inversion transaction with Ireland-based Vidara Therapeutics last week.
    • Related tickers: (MDT -0.4%)(COV -0.5%)(ABBV -0.6%)(SHPG -0.7%)(OTCQB:SHPGF -1.5%)(PFE -0.7%)(AZN -0.1%)(SNN +0.1%)(SYK -0.8%)
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  • Jul. 21, 2014, 7:15 AM
    • Bloomberg reports that, according to analysts, there are three ex-U.S. medical firms that should be high on the target acquisition list for tax inversion deals. Ireland-based Perrigo (NYSE:PRGO), Switzerland-based Actelion and U.K.-based Smith & Nephew Plc (NYSE:SNN) (OTCQB:SNNUF) are all attractive targets. Observers believe there will be more acquisitions consummated before Congress puts limits on the maneuvers.
    • Stryker (NYSE:SYK) has been mentioned as a potential suitor for Smith& Nephew. Pfizer (NYSE:PFE) may make another run at AstraZeneca (NYSE:AZN) after the end of the cool-off period.
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Company Description
Stryker Corporation is a medical technology company. The Company offers medical technologies, including reconstructive, medical and surgical, and neurotechnology and spine products.