Dec. 31, 2013, 9:11 AM
Dec. 30, 2013, 5:11 PM
- Stryker (SYK) says it received FDA clearance for the Neptune 2 Waste Management System, which the company says minimizes risk to healthcare workers by eliminating harmful exposure to fluids and smoke in the operating room.
- Wells Fargo estimates Neptune could increase SYK's revenue growth by ~70 basis points in 2014; the firm keeps an Outperform rating on the stock.
Dec. 17, 2013, 8:12 AM
- Leerink is out with some commentary on the MedTech space.
- Investors should "focus on companies with growth acceleration and/or upside surprise potential independent of (or at least less dependent on) a macroeconomic recovery [or, alternatively,] a higher and increasing percentage of sales derived from end-markets exhibiting above-average growth," Leerink says.
- Not surprisingly, the LVAD device market gets a mention, with Heartware (HTWR) recommended by name (remember, they just snapped up CircuLite which some think can compete with SSH's C-Pulse).
- Other names mentioned by Leerink: Covidien (COV) for neurovascular and energy devices; Stryker (SYK) for neurovascular and robotics; St. Jude's Medical (STJ) and JNJ for atrial fibrillation; Intuitive Surgical (ISRG).
- Thoratec (THOR) gets an LVAD mention as well, which is interesting considering Leerink's recent commentary on the NEJM manuscript which discussed possible thrombus formation with the HeartMate II.
Nov. 25, 2013, 9:24 AM
Oct. 23, 2013, 6:39 PM
- Stryker Corp. (SYK) expects to spend between $700M and $1.13B to resolve litigation and other costs related to last year's recall of its its Rejuvenate and ABG II hip implants, nearly double its previous estimate.
- In its 10-Q filing, SYK says the ultimate total cost is still uncertain and will depend "on the number of and actual costs of patients seeking testing and treatment services, the number of and actual costs of patients requiring revision surgeries, the number of and actual costs to settle lawsuits filed against us, and the amount of third-party insurance recoveries."
Oct. 17, 2013, 4:54 PM
- Stryker's (SYK) Q3 sales rise 6.8% on a constant currency basis.
- Sales breakdown (constant currency): Reconstructive +9.2%; MedSurg +2.6%; Neurotechnology and Spine +10%.
- FY13 outlook: EPS of $4.20-4.26 on organic sales growth of 4.5-5.5%. Consensus is $4.23/share on sales of $8.99B. (PR)
- More: SYK revenue in line, profit falls short
- SYK -1.8% AH.
Oct. 17, 2013, 4:09 PM
Oct. 17, 2013, 12:10 AM
Oct. 16, 2013, 5:35 PM
Oct. 15, 2013, 2:44 PM
- On emerging markets: JNJ CFO Dominic Caruso says the company maintained "double-digit growth ... somewhere near 11%, 12% combined in the BRIC markets," for Q3. As for China, JNJ saw "an overall slower level of market growth" for the period.
- In response to JPMorgan analyst Mike Weinstein's question regarding growth in the consumer business: "The consumer business has had some challenges related to the overall economic slowdown [but] certain pockets of the business ... are doing extremely well," Caruso notes, adding that although JNJ "still [has a] little ways to go with some innovation ... the emerging markets consumer business continues to do well [as] those consumers begin to purchase more personal care products."
- On the SYK-MAKO deal: DePuy Synthes Chairman Michel Orsinger says "robotics, in its current stage ... has not yet been proven [to be] the best solution to address outcomes, efficiency and costs," and while "It has theoretical incremental improvement in surgical accuracy [it comes] with increased significant surgical time and capital cost."
- CC transcript
- Q3 earnings rundown
Oct. 14, 2013, 3:53 PM| Oct. 14, 2013, 3:53 PM | 3 Comments
Oct. 2, 2013, 8:35 AM
- "For [us] the device tax is clearly a negative. It's 2.3% of sales, roughly $100M a year, which represents roughly 20% of our [research-and-development] budget," Stryker (SYK) CEO Kevin Lobo says, discussing the impact of the Affordable Care Act with WSJ. Lobo is advocating — along with some members of Congress and the trade group AdvaMed — for a repeal of the excise tax.
- Some say the tax emanates from the medical device industry's reluctance to make pledges to help pay for the new healthcare law: "You either come to the table early, or you end up part of the dinner," one insider told WSJ in the early days of Obamacare wrangling.
- On the positive side of things, Lobo says "there are many sensible elements of [the] legislation," and the CEO says his company's hospital bed and knee replacement businesses should benefit from the law.
- As for the 89% premium the company paid for Mako (MAKO), Lobo says "the potential is enormous and it can really provide significant differentiation."
Sep. 25, 2013, 4:11 PM
- Also getting a boost Wednesday from the Stryker-Mako (SYK, MAKO) deal was Hansen Medical (HNSN) which posted double-digit gains (+14%) for the session.
- Intuitive Surgical (ISRG) and Accuray (ARAY) finished the day higher by 1% and 1.9% respectively.
- Meanwhile, commentary continues to come in regarding the seemingly high price SYK paid in the deal. BMO's Joanne Wuensch says that despite the lofty premium, "it makes a lot of sense [as] SYK takes a step forward into robotic surgery and consolidates its orthopedic silo."
- Previous coverage here
Sep. 25, 2013, 10:36 AM
- Stryker (SYK -2.3%) "is paying 12.4x EV/sales [for MAKO] on our 2013 sales estimate which is relatively high," Wells Fargo's Larry Biegelsen notes, adding that "the 2 most recent ortho deals, MDT's acquisition of Kanghui and SYK's acquisition of Trauson went for 11.6x and 8.7x, on an EV/sales basis respectively."
- Nevertheless, Biegelsen thinks SYK is getting a "differentiated asset" — Wells has been bullish on MAKO since May. SYK is reiterated at Outperform.
- TheStreet's Antoine Gara notes that as of September 13, 22% of MAKO's float was sold short.
- More on the deal here
Sep. 25, 2013, 8:52 AM
Sep. 25, 2013, 8:14 AM
- Mako Surgical (MAKO) shareholders get welcome news, as Stryker (SYK) is set to acquire the medical device company for $30/share, an 86% premium to Tuesday's close.
- SYK CEO Kevin Lobo is particularly excited about what the deal means for the future of joint reconstruction: "Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience," he says.
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