ExtremitiesTop Stories

Stryker boosts bone implants with $4 billion Wright Medical buyout

Saumya Joseph / Nov. 4, 2019

(Reuters) – Medical device maker Stryker Corp (SYK.N) said on Monday it would buy smaller rival Wright Medical Group (WMGI.O) for about $4 billion in cash, to gain access to the fast-growing upper-body joint implants business.

Wright Medical, which recorded sales of $836 million last year, is among the top makers of implants to treat upper-body joint injuries such as in shoulder or wrist, as well as lower body including in foot and ankle.

Wells Fargo analyst Larry Biegelsen said the deal would give Stryker a leading position in the shoulder market, which has been a major gap in the device maker’s orthopedic portfolio.

“Stryker will meaningfully bolster its ability to compete and innovate in the nearly $2 billion global shoulder market,” Chief Executive Officer Kevin Lobo said in a conference call with analysts.

Stryker, however, may have to make some divestments in its ankle implant portfolio to avoid antitrust issues as Wright Medical has a near 70% share of the total ankle replacement market, analyst Biegelsen said.


Chris J. Stewart

Chris currently serves as President and CEO of Surgio Health. Chris has close to 20 years of healthcare management experience, with an infinity to improve healthcare delivery through the development and implementation of innovative solutions that result in improved efficiencies, reduction of unnecessary financial & clinical variation, and help achieve better patient outcomes. Previously, Chris was assistant vice president and business unit leader for HPG/HCA. He has presented at numerous healthcare forums on topics that include disruptive innovation, physician engagement, shifting reimbursement models, cost per clinical episode and the future of supply chain delivery.

Related Articles

Back to top button