Stryker Corporation

Last updated
Stryker Corporation
Company type Public
Industry Health technology
Founded1941;84 years ago (1941)
Founder Homer Stryker
Headquarters Kalamazoo, Michigan, U.S.
Newbury, Berkshire, U.K.
Key people
Kevin A. Lobo
(Chairman and CEO)
Timothy J. Scannell
(President and COO)
Ronda Stryker (Director)
Products
RevenueIncrease2.svg US$22.59 billion (2024)
Decrease2.svgUS$3.689 billion (2024)
Decrease2.svgUS$2.993 billion (2024)
Total assets Increase2.svgUS$42.97 billion (2024)
Total equity Increase2.svgUS$20.63 billion (2024)
OwnerJohn W. Brown (5.3%)
Ronda Stryker (4.6%)
Jon Stryker
Pat Stryker
Number of employees
53,000 (2024)
Website stryker.com
Footnotes /references
[1] [2]
Stryker Roll-In-Stretcher Stryker trage.jpg
Stryker Roll-In-Stretcher

Stryker Corporation is an American multinational medical technologies corporation based in Kalamazoo, Michigan. The company's products are used for medical surgery and neurotechnology (60% of 2024 revenues), which include surgical equipment, patient and caregiver safety technologies, endoscopy systems, and patient handling, emergency medical equipment, and intensive care disposable products, as well as neurosurgical, neurovascular and oral and maxillofacial surgery implant products; and orthopedic surgery (40% of 2024 revenues), which includes implants used in total joint replacements, such as hip, knee and shoulder, and trauma and extremities surgeries. [1] Stryker's products are sold in over 75 countries and are used by 150 million patients annually. [1] In 2024, 75% of the company's revenues came from the United States. [1]

Contents

The company is ranked 195th on the Fortune 500 [3] and 331st on the Forbes Global 2000. [4]

History

In 1941, The Orthopedic Frame Company was founded by Homer Stryker, an orthopedist from Kalamazoo, Michigan. [1] Stryker developed the Turning Frame, a mobile hospital bed that allowed for repositioning of injured patients while providing necessary body immobility; the cast cutter, a cast cutting apparatus that removed cast material without damaging underlying tissues; and the walking heel, among others. In 1964, the company name was changed to Stryker Corporation. [5] [6]

In 1977, John W. Brown joined as president and CEO and became chairman in 1981. He transitioned to chairman in 2003. [7] In 2009, Brown retired as chairman after 32 years with the company. Under his leadership, revenues rose from $17 million to $6.7 billion. [8]

In 1979, Stryker became a public company via an initial public offering. [8]

In 2003, Stephen P. MacMillan joined Stryker as president and CEO.

In 2007, Stryker sold its Physiotherapy Associates division to private equity firm Water Street Healthcare Partners for $150 million.

In February 2012, MacMillan resigned and Curt R. Hartman was named Interim Chief Executive Officer and vice president and chief financial officer. William U. Parfet was named non-executive chairman of the board. In October 2012, Kevin A. Lobo was appointed as president and chief executive officer. [9]

In 2023, Stryker introduced a minimally invasive bunion treatment system, Prostep MIS Lapidus, which aims to reduce bunion recurrence, minimize scarring, and lower opioid use. [10]

Acquisitions history

YearCompanyDescriptionRef(s).
1979OsteonicsEntrance to the replacement hip, knee, and other orthopedic implants market. [5]
1981SynOpticsEntrance to endoscopy business. [5]
1998HowmedicaOrthopaedic division of Pfizer. Price was $1.9 billion. Howmedica became Stryker Orthopaedics. [11] [12] [13]
August 2000Guided TechnologiesDeveloper and manufacturer of optical localizers. [14]
July 2002Spinal Implant Business of Surgical DynamicsPrice was $135 million. [15]
August 2004SpineCoreDevelopment of artificial spinal disks. Price was $120 million. [16]
February 2005eTrauma.comPrice was $50 million. Development of software for Picture archiving and communication system (PACS) [17]
March 2006Sightline TechnologiesManufacturer of gastrointestinal endoscopy apparatuses. Price was $50 million. Partially closed in 2008. [18] [19]
January 2006PlasmaSolTechnologies allowing sterilization of various MedSurg equipments. Price was $17.5 million. [20] [21]
December 2009Ascent Healthcare SolutionsReprocessing and remanufacturing of medical devices in the U.S. Price was $525 million. [22]
January 2011Neurovascular Division of Boston Scientific Products used for the minimally invasive treatment of hemorrhagic and ischemic stroke. Price was $1.5 billion. [23]
June 2011OrthovitaA biomaterials company specializing in bone augmentation and substitution technologies. [24]
July 2011Memometal TechnologiesManufactures and markets products for extremity indications based on its proprietary methods for preparing and manufacturing a shape memory metal alloy. Price was up to $162 million. [25] [26]
August 2011Concentric MedicalPrice was $135 million. Devices for the removal of thrombus in patients experiencing acute ischemic stroke along with a broad range of AIS access products. [27] [28]
November 2012Surpass MedicalFlow diversion stent technology to treat brain aneurysms using a mesh design and delivery system. Price was $135 million. [29]
March 2013Trauson HoldingsTrauma manufacturer in China. Price was $764 million. [30]
December 2013 MAKO Surgical Corp. Surgical robotic arm assistance platforms, most notably the RIO (Robotic Arm Interactive Orthopedic System) as well as orthopedic implants used by orthopedic surgeons for use in partial knee and total hip arthroplasty. Price was $1.65 billion. [31]
March 2014Patient Safety TechnologiesSafety-Sponge System, an integrated counting and documentation system that prevents surgical sponges and towels from being unintentionally left in patients after surgical procedures. Price was $85 million. [32]
March 2014Pivot MedicalProducts for hip arthroscopy. [33]
April 2014Berchtold Holding AGSurgical tables, equipment booms, and surgical lighting systems. Price was $172 million. [34]
July 2014Small Bone InnovationsProducts that help surgeons treat and replace small bones and joints. Price was $358 million. [35]
September 2015Muka MetalManufactures hospital beds and patient furniture in Kayseri. [36]
February 2016Sage ProductsDisposable device maker. Price was $2.78 billion. [37]
February 2016 Physio-Control Maker of defibrillators. Price was $1.28 billion. [38]
June 2017ArthrogenxCobra reusable suture passer for arthroscopic rotator cuff repair [39]
September 2017NovadaqFluorescence imaging systems. Price was $701 million. [40]
October 2017VeximMinimally invasive treatment of vertebral fractures. Price was €183 million. [41]
December 2017Entellus MedicalMinimally invasive products for the treatment of various ENT diseases. Price was $662 million. [42]
May 2018Hygia Health ServicesReprocessing of patient care single-use devices. [43]
June 2018SafeAir AGSurgical smoke evacuation. [44]
September 2018InvuitySurgical lighting company. Price was $190 million. [45] [46]
October 2018HyperBranch Medical TechnologyMaker of Adherus AutoSpray dural sealant. Price was $220 million. [47]
November 2018K2M Group HoldingsSpinal surgery device-maker. Price was $1.4 billion. [48]
February 2019ArrinexManufacturer of cryoablation technology for the treatment of chronic rhinitis. [49]
March 2019OrthoSpaceRotator cuff implant. Price was up to $220 million. [50]
October 2019Mobius Imaging and GYS TechIntra-operative imaging. Price was $370 million upfront, plus up to $130 million in contingent payments. [51]
November 2020Wright Medical GroupUpper-body implants. Price was $5.4 billion. [52]
January 2021OrthoSensorSensor technology for use in total joint replacement procedures [53]
April 2021TMJ ConceptsPatient-specific implants for TMJ reconstruction. [54]
September 2021Gauss SurgicalPlatform for real-time monitoring of blood loss during surgery. [55]
January 2022Vocera CommunicationsDigital patient outreach tools. Price was $2.97 billion. [56] [57]
March 2024SERF SASJoint replacements. [58]
September 2024Care.aiArtificial intelligence-based tools for hospitals. [59]
September 2024NICO CorporationMinimally invasive solutions for brain tumor removal and stroke care. [60]
February 2025Inari MedicalCatheter-based mechanical thrombectomy systems to treat vascular disease. Price was $4.9 billion. [61]

Acquisitions history

Stryker Corporation Acquisitions
  • Stryker Corporation(Est. 1941 as The Orthopedic Frame Company)
    • Osteonics Corporation
    • Howmedica (Acq 1998)
    • Leibinger GmbH(Acq 1996)
    • Guided Technologies, Inc. (Sold 2007, SpineCore Inc.)
    • Water Street Healthcare Partners (Sold 2007)
    • Surgical Dynamics Inc. (Acq 2002)
    • SpineCore Inc. (Acq 2004)
    • PlasmaSol Corporation (Acq 2005)
    • Sightline Technologies Ltd (Acq 2006)
    • eTrauma.com Corporation (Acq 2006)
    • Ascent Healthcare Solutions, Inc. (Acq 2009)
    • Boston Scientific (Neurovascular div) (Acq 2011)
    • Orthovita (Acq 2011)
    • Memometal Technologies S.A. (Acq 2011)
    • Concentric Medical, Inc. (Acq 2011)
    • Trauson Holdings Company Limited (Acq 2012)
    • MAKO Surgical Corporation (Acq 2012)
    • Patient Safety Technologies (Acq 2012)
    • Surpass Medical Ltd (Acq 2012)
    • Pivot Medical, Inc. (Acq 2014)
    • Berchtold Holding AG (Acq 2014)
    • Small Bone Innovations Inc. (Acq 2014)
    • Sage Products (Acq 2016)
    • Physio-Control (Acq 2016)
    • Stanmore Implants Worldwide Ltd (Acq 2016)
    • Entellus Medical Inc (Acq 2017)
    • Arthrogenx, LLC (Acq 2017)
    • Novadaq (Acq 2017)
    • Vexim (Acq 2017)
    • Scopis GmbH (Acq 2017)
    • K2M Group Holdings, Inc. (Acq 2018)
    • Hygia Health Services (Acq 2018)
    • SafeAir AG (Acq 2018)
    • HyperBranch Medical Technology, Inc. (Acq 2018)
    • Invuity, Inc (Acq 2018)
    • Arrinex, Inc. (Acq 2019)
    • OrthoSpace, Ltd (Acq 2019)
    • GYS Tech, LLC (Acq 2019)
    • Mobius Imaging, LLC (Acq 2019)
    • Stryker B.V. [62]
      • Stryker Unite, (Bermuda) Ltd
        • Wright Medical Group N.V. (Acq 2019)
          • Wright Luxembourg S.A.
          • Wright Medical (Bermuda) Ltd
          • IMASCAP SAS (Acq 2017)
          • Cartiva, Inc. (Acq 2018)
    • OrthoSensor, Inc. (Acq 2020)
    • TMJ Concepts (Acq 2020)
    • Vocera Communications (Acq 2021)
    • SERF SAS (Acq 2024)
    • Care.ai (Acq 2024)

Controversies and lawsuits

In 2007 and 2008, the company received three FDA warning letters citing issues in compliancy.

The first of these, a seven-page correspondence, named various issues at an Irish manufacturing facility, such as untimely fix of failures and procedural noncompliance in the testing of failed or otherwise problem-prone devices. [63] The second, sent November 2007, cited issues at the firm's Mahwah, New Jersey, facility, including poor fixation of hip implant components, in some instances requiring mitigation by revision surgeries; exceeded microbial level violations in the cleaning and final packaging areas of the sterile implants; and failure to institute measures in prevention of recurrence of these and other problems. [64] The third warning letter, sent April 2008, cited issues at the firm's biotechnology facility in Hopkinton, Massachusetts related to quality and noncompliance including falsification of documents relevant to the selling of products to hospitals which are to be sold under a limited, government-mandated basis. Stryker maintains that employees involved in the falsification of documents have since been terminated. [65]

In August 2010, the company paid $1.35 million to settle claims that it marketed items without regulatory approval and misled health care providers about the use of its products. [66]

Stryker initiated a product recall on several models of medical vacuums sold under the Neptune Waste Management System brand in June and September 2012. The devices, some of which had not been cleared by the Food and Drug Administration, caused a fatal accident when the vacuum was mistakenly used to suction a passive drainage tube. [67] [68]

In 2013, the company agreed to pay $13.2 million to settle charges that it made illicit payments totaling approximately $2.2 million in Argentina, Greece, Mexico, Poland, and Romania. [69] In 2018, the company was fined $7.8 million under the Foreign Corrupt Practices Act for failing to detect the risk of improper payments in sales of products in India, China, and Kuwait. [70]

Lawsuits

On 2012, FDA has issued a warning for the Stryker Rejuvenate hip replacement after it was discovered that the hip replacement was considered defective and can cause similar side effects to DePuy Synthes hip implants. As a result, in 2014, Stryker was fined $1 billion and $2.5 billion, respectively, for its defective Rejuvenate and ABG II hip replacements that can cause excruciating pain. [71]

In 2016, subsidiary company Stryker EMEA Supply Chain Services BV challenged the Dutch authorities' interpretation of procurement nomenclature regarding implant screws intended to be inserted in the human body. The matter was referred to the European Court of Justice for a preliminary ruling on the legal position and on the validity of the relevant EU implementing regulation. [72]

Continuation of business in Russia after the 2022 Russian invasion of Ukraine

Stryker is among companies that continue business-as-usual in Russia during the 2022 Russian invasion of Ukraine despite international sanctions during the Russian invasion of Ukraine. Research from Yale School of Management evaluating companies' reaction to the Russian invasion put Stryker in the "Grade F" category of "Digging In", meaning "Defying Demands for Exit or Reduction of Activities." [73]

Awards and recognition

Stryker was recognized by Hermann Simon as a role model for other small to medium-sized business in his book Hidden Champions . [74]

References

  1. 1 2 3 4 5 "Stryker Corporation 2024 Form 10-K Annual Report". United States Securities and Exchange Commission. February 12, 2025.
  2. ↑ "Stryker Corporation 2024 Form 14A". United States Securities and Exchange Commission. March 25, 2025.
  3. ↑ "Fortune 500: Stryker". Fortune.
  4. ↑ "Forbes: Stryker". Forbes.
  5. 1 2 3 "Dr. Homer Stryker (1894-1980)". Kalamazoo Public Library .
  6. ↑ "Our History". Stryker Corporation.
  7. ↑ "Stryker Corporation Chairman John Brown to Retire". BioSpace. October 30, 2009.
  8. 1 2 "John Brown". Forbes .
  9. ↑ "Stryker names Kevin Lobo as president and CEO". FierceBiotech . Questex. October 5, 2012.
  10. ↑ Paul Taylor, Nick (September 21, 2023). "Stryker adds minimally invasive bunion device to fast-growing extremities portfolio". Industry Dive .
  11. ↑ Lipin, Steven (August 14, 1998). "Medical Device Maker Stryker to Buy Pfizer's Howmedica for $1.9 Billion" . The Wall Street Journal .
  12. ↑ "Stryker to Buy Orthopedics Unit From Pfizer for $1.9 Billion" . The New York Times . Bloomberg News. August 15, 1998.
  13. ↑ O'KEEFFE, BARRY (August 15, 1998). "Stryker Corporation purchases Howmedica group for £1.36bn". The Irish Times .
  14. ↑ "Stryker to Acquire Image Guided Technologies". Med Device Online. June 2, 2000.
  15. ↑ "Stryker Announces Completion of Surgical Dynamics Spinal Business Acquisition" (Press release). Stryker Corporation. July 1, 2002.
  16. ↑ Swain, Erik (September 1, 2004). "Stryker to Acquire SpineCore". MD+DI Online.
  17. ↑ "Deals roundup: Stryker in $50M acquisition of PACS developer eTrauma". BioWorld. February 25, 2005.
  18. ↑ "Stryker completes Sightline acquisition". Zenopa. March 23, 2006.
  19. ↑ Nixon, Alex (December 17, 2008). "Report: Stryker Corp. closing Sightline endoscopy business in Israel". MLive.com . Kalamazoo Gazette.
  20. ↑ "Stryker acquires PlasmaSol". United Press International . January 3, 2006.
  21. ↑ "Stryker Acquires PlasmaSol". Crain Communications . January 3, 2006.
  22. ↑ "Stryker to Acquire Ascent Healthcare Solutions". Infection Control Today. December 4, 2009.
  23. ↑ "Boston Scientific Completes Sale of Neurovascular Business" (Press release). Boston Scientific. January 3, 2011.
  24. ↑ George, John (May 16, 2011). "Orthovita to be bought by medical technology giant Stryker" . American City Business Journals .
  25. ↑ "Stryker to buy Memometal Technologies for up to $162M". FierceBiotech . Questex. June 6, 2011.
  26. ↑ Stynes, Tess (June 6, 2011). "Stryker to Acquire Memometal Technologies" . The Wall Street Journal .
  27. ↑ "STRYKER Signs Definitive Agreement to Acquire CONCENTRIC MEDICAL, Inc" (Press release). PR Newswire. August 31, 2011.
  28. ↑ Beasley, Deena (September 1, 2011). Hill, Gary (ed.). "Stryker to acquire Concentric Medical for $135 mln". Reuters .
  29. ↑ "Stryker acquires Surpass Medical for $135m". Globes . 16 October 2012.
  30. ↑ Garde, Damian (March 4, 2013). "Stryker closes $764M deal for Chinese ortho giant". FierceBiotech . Questex.
  31. ↑ Dey, Esha (September 25, 2013). "Stryker buys Mako Surgical to gain robot surgery skills". Reuters .
  32. ↑ Tozzi, John (March 26, 2014). "Can Technology Stop Surgeons From Leaving Sponges Inside Patients?" . Bloomberg News .
  33. ↑ "Stryker Completes Pivot Medical Acquisition". March 18, 2014 – via Yahoo Finance.
  34. ↑ "Stryker Completes Acquisition of Berchtold Holding AG" (Press release). GlobeNewswire. April 15, 2014 – via Yahoo Finance.
  35. ↑ Jones, Al (June 30, 2014). "Stryker Corp. to pay up to $375 million to buy assets of Small Bone Innovations Inc". MLive.com .
  36. ↑ "Stryker (SYK) Acquires Muka Metal; Expands in Turkey". Nasdaq . September 2, 2015.
  37. ↑ Penumudi, Amrutha (February 1, 2016). "Medical device maker Stryker to buy Sage Products for $2.78 billion". Reuters .
  38. ↑ Soper, Taylor (Feb 16, 2016). "Physio-Control acquired for $1.3 billion by medical device maker Stryker Corp". GeekWire .
  39. ↑ Hofheinz, Elizabeth (March 30, 2018). "Stryker Launches COBRA Suture Passer for Rotator Cuff Repair". Orthopedics This Week.
  40. ↑ Al Idrus, Amirah (March 4, 2013). "Stryker to pony up $700M for imaging player Novadaq". FierceBiotech . Questex.
  41. ↑ Keown, Alex (October 25, 2017). "VEXIM Acquired by Stryker in EUR 183M Deal". BioSpace.
  42. ↑ Grover, Divya (December 7, 2017). Dasgupta, Shounak (ed.). "Stryker beefs up ENT business with $662 million Entellus buy". Reuters .
  43. ↑ "Stryker acquires Hygia Health Services". Association of Medical Device Reprocessors. May 1, 2018.
  44. ↑ "Stryker Announces Definitive Agreement To Acquire Safeair AG". Reuters . June 25, 2018.
  45. ↑ "Invuity Announces Definitive Agreement to Be Acquired by Stryker Corporation for $7.40 Per Share in Cash" (Press release). GlobeNewswire. September 11, 2018.
  46. ↑ Pifer, Rebecca (September 11, 2018). "Stryker buys surgical lighting company for $190M". Industry Dive .
  47. ↑ Boomgaard, Joe (October 1, 2018). "Stryker acquires N.C. med device firm for $220 million". Crain Communications .
  48. ↑ Lim, David (November 9, 2018). "Stryker closes $1.4B K2M acquisition". Industry Dive .
  49. ↑ Taylor, Nick Paul (February 26, 2019). "Stryker buys Arrinex to expand ENT portfolio". Industry Dive .
  50. ↑ Hale, Conor (March 15, 2019). "Stryker acquires OrthoSpace and its rotator cuff implant in $220M deal". FierceBiotech . Questex.
  51. ↑ "Stryker announces definitive agreement to acquire Mobius Imaging & Cardan Robotics" (Press release). GlobeNewswire. September 4, 2019.
  52. ↑ "Stryker completes acquisition of Wright Medical" (Press release). GlobeNewswire. November 11, 2020.
  53. ↑ Kelly, Susan (January 5, 2021). "Stryker buys sensor maker in bet on wearables in orthopaedics". Industry Dive .
  54. ↑ "TMJ Device and Regulatory History". TMJ Association.
  55. ↑ "Stryker announces the acquisition of Gauss Surgical" (Press release). PR Newswire. September 7, 2021.
  56. ↑ "Medical device maker Stryker to buy Vocera Communications for $2.97 bln". Reuters . January 6, 2022.
  57. ↑ Hale, Conor (January 6, 2022). "Stryker ponies up $3B to buy Vocera and amp up its digital communications". FierceBiotech . Questex.
  58. ↑ "Stryker completes acquisition of SERF SAS" (Press release). PR Newswire. March 21, 2024.
  59. ↑ Reuter, Elise (August 12, 2024). "Stryker to buy smart hospital technology firm Care.ai". Industry Dive .
  60. ↑ "Stryker completes acquisition of NICO Corporation, expanding minimally invasive solutions for brain tumor removal and stroke care" (Press release). PR Newswire. September 20, 2024.
  61. ↑ Zipp, Ricky (January 6, 2025). "Stryker to buy Inari Medical for nearly $5B". Industry Dive .
  62. ↑ "Stryker completes acquisition of Wright Medical". BioSpace.
  63. ↑ Dixon, Kim (19 June 2007). "Stryker gets FDA warning letter for Ireland plant". Reuters .
  64. ↑ Nixon, Alex (January 15, 2008). "FDA issues warning letter to Stryker Corp". MLive.com . Kalamazoo Gazette.
  65. ↑ "Stryker Gets Third Warning Letter From FDA Regarding Problems With Biotech Division". Rodman Publishing. May 5, 2008.
  66. ↑ "Stryker Settles Case That Claimed Deception" . The New York Times . Bloomberg News. August 27, 2010.
  67. ↑ Cortez, Michelle Fay (25 September 2012). "Stryker Recalls Neptune Devices After Death Reported" . Bloomberg. Retrieved 30 October 2013.
  68. ↑ "Stryker Issues Class 1 Recall of Neptune Rover Waste Management System in the United States, Asia Pacific, Canada, Japan, Latin America and EMEA" (Press release). U.S. Food and Drug Administration. 25 September 2012. Archived from the original on 1 November 2013. Retrieved 30 October 2013.
  69. ↑ "SEC Charges Stryker Corporation With FCPA Violations" (Press release). United States Securities and Exchange Commission. October 24, 2013.
  70. ↑ Goldstein, Steve (September 28, 2018). "Stryker to pay $7.8 million fine to SEC for FCPA violations" . MarketWatch .
  71. ↑ "Stryker Hip Lawsuit | Settlement Amounts & 2021 Updates". Drugwatch.com. Retrieved 2021-10-09.
  72. ↑ Official Journal of the European Union, tryker EMEA Supply Chain Services BV v Inspecteur van de Belastingdienst/Douane kantoor Rotterdam Rijnmond: Request for a preliminary ruling from the Rechtbank Noord-Holland, Case C-51/16, published 18 April 2016, accessed 26 September 2023
  73. ↑ "Over 1,000 Companies Have Curtailed Operations in Russia—But Some Remain". Yale School of Management . 2022-12-23.
  74. ↑ Simon, Hermann: Hidden Champions of the 21st Century : Success Strategies of unknown World Market Leaders. London: Springer, 2009. ISBN   978-0-387-98147-5.
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