07.20.22
Rank: #7 (Last year: #9)
$17.10 Billion
Prior Fiscal: $14.35 Billion
Percentage Change: +19.2%
R&D Expenditure: $1.23B
Best FY21 Quarter: Q4 $4.29B
Latest Quarter: Q1 $4.27B
No. of Employees: 46,000
Global Headquarters: Kalamazoo, Mich.
KEY EMPLOYEES:
Kevin A. Lobo, Board Chair, CEO, and President
Glenn S. Boehnlein, VP, CFO
Viju S. Menon, Group President, Global Quality and Operations
J. Andrew Pierce, Group President, MedSurg and Neurotechnology
Spencer S. Stiles, Group President, Orthopaedics and Spine
Yin C. Becker, VP, Chief Corporate Affairs Officer
Dana S. McMahon, VP, Chief Compliance Officer
Jody K. Powell, VP, Global Regulatory Affairs and Quality Assurance
The irony was unmistakable.
And a bit surreal.
For a few brief seconds, Jeff Brantley’s mind could not comprehend the sight before his eyes.
The milk carton was on the floor.
It had been sitting in his refrigerator less than a minute ago, and now it was on the floor.
How? Why?
Brantley’s shoulder promptly answered those questions. Specifically, the pain in his shoulder provided the answers.
At that point, reality kicked in and Brantley realized how the milk carton wound up on the floor—he was reaching for the milk when a lightning bolt of pain shot down his right arm—his pitching arm.
The pain was baffling to Brantley, a former Major League Baseball pitcher who hurled bullets for the San Francisco Giants, Cincinnati Reds, Philadelphia Phillies, St. Louis Cardinals, and Texas Rangers. The 1990 All-Star led the National League in 1996 with 44 saves (2.41 ERA), and struck out 728 batters throughout his 14-year career.
Brantley couldn’t comprehend how an arm once capable of throwing 92-mph fastballs could suddenly stop working. “I was really concerned because I’m right-handed,” he said. “I can’t even get a carton of milk out of the refrigerator? I’m a pro athlete. I should be able to do that in my sleep.”
In theory, perhaps.
The shoulder is the body’s most mobile joint, facilitated by a junction of flexible tendons and ligaments that store vast amounts of elastic energy. This elasticity—and outward-facing shoulders—gives humans the ability to throw faster and further than any other animal (chimps, for instance, can only throw 20 mph at best).
The shoulder’s tendons and ligaments are thick and short; as such, they stretch like an elastic band when the arm is cocked in pre-throw preparation. Once the arm whips forward, those fibers spring back to their original positions and release their elastic energy, propelling the ball (or other object) from the thrower’s hand.
Kind of like a slingshot.
The best slingshots, of course, are those with new bands, as their elasticity can wane over time.
“At the end of the day, despite the fact that we evolved to throw,” noted George Washington University anthropologist Dr. Neil Roach, “when we overuse this ability it can end up injuring us.”
Those injuries can be serious, too. Brantley—who pitched 859 innings, facing 3,644 batters over the course of his career—replaced his deteriorating shoulder with one made by Kalamazoo, Mich.-based Stryker Corp. Surgeons allayed Brantley’s concerns about the procedure by previewing it through Stryker’s Blueprint 3D Planning software.
Gained through the $5.6 billion Wright Medical acquisition, Blueprint allows surgeons to virtually position and create a patient-matched shoulder implant. Studies have shown 3D pre-operative planning software results in more accurate glenoid positioning compared with standard techniques.
Blueprint is among the features Stryker built into its latest shoulder implant, the Tornier Perform Humeral Stem. Formally introduced last summer, the Perform Stem was designed with four collar diameters and is available in multiple lengths to optimize the humeral fit and provide size options to surgeons. The smaller stem sizes are ideal for addressing smaller patient anatomies, according to Stryker.
The Tornier Perform Humeral Stem is compatible with Stryker’s full line of standard and augmented Perform glenoid options for anatomic and reversed procedures.
“We’re delivering on our mission to make healthcare better—for surgeons and the patients they serve,” Mike Panos, president of Stryker’s Trauma & Extremities division, said when Perform made its debut. “The Tornier shoulder arthroplasty portfolio will set Stryker apart in the shoulder market.”
Such differentiation clearly drove Stryker’s 2019 purchase of Wright Medical, as the deal added both the Tornier and Aequalis product lineups to the multinational’s meager shoulder portfolio.
Stryker further bolstered its shoulder solutions last summer with the U.S. Food and Drug Administration (FDA) de novo clearance of its InSpace balloon implant, an arthroscopic treatment for massive irreparable rotator cuff tears (MIRCT). InSpace restores the shoulder’s subacromial space without sutures or fixation devices, and is considered the first product of its kind in the U.S. market.
Not unlike the Tornier portfolio, Stryker gained the InSpace balloon technology via its 2019 deal for OrthoSpace Ltd. ($220 million). The biodegradable solution is affirmed by more than a decade of clinical data and 29,000 outside-U.S. implantations as well as a Level I study in North America.
“...InSpace provides a new surgical option for surgeons to address their unmet MIRCT needs in the shoulder continuum of care,” Matt Moreau, Stryker’s Sports Medicine vice president and general manager, said upon the FDA clearance. “...InSpace offers a unique opportunity for us to better partner with our customers on their clinical objectives to improve patient outcomes around a very challenging pathology in the shoulder.”
InSpace was one of several innovations unveiled last year within Stryker’s Trauma and Extremities franchise—the most profitable for the company. Sales in this division outpaced the other 10, skyrocketing 54.6% to $2.66 billion.
Trauma and Extremities’ strong showing in 2021 helped boost Orthopaedics and Spine Segment proceeds 26% to $7.57 billion. Each of the segment’s five franchises achieved double-digit revenue growth, with Other leading the way at 18.2% ($549 million), followed by Knees at 18% ($1.84 billion), Spine at 11.5% ($1.16 billion), and Hips at 11.2% ($1.34 billion).
The MedSurg and Neurotechnology segment mostly followed the same pattern: Neuro Cranial expanded sales 25% ($1.21 billion), while Neurovascular topped out revenue at 22% ($1.18 billion), and Endoscopy posted a 21.5% gain ($2.14 billion). Other sales swelled 10.4% to $277 million, and Medical proceeds climbed 3.3% to $2.6 billion. Overall MedSug and Neurotechnology Segment revenue ballooned 14.3% to $9.53 billion.
The dynamic growth in Stryker’s two reporting segments lifted total FY21 sales 19.2% to $17.1 billion. Gross profit rose 21.1% to $10.96 billion, operating income jumped 16.2% to $2.58 billion, and net earnings improved 24.7% to $1.99 billion.
“Stryker delivered above-market sales growth with strong earnings and cash flow in 2021,” Chair and CEO Kevin A. Lobo told shareholders in the company’s 2021 annual report. “Stryker’s innovative spirit is alive and well as we continue to launch new products and pursue acquisitions to fuel growth across our business units.”
Those new products included the Citrelock Tendon Fixation Device System, T2 Alpha Femur Retrograde Nailing System, and Prophecy Infinity Resect-Through Guides in Trauma and Extremities; and the T7 personal protection system in Other.
The T7 and T7 plus is a next-generation protective helmet and system that keeps surgeons cool and comfortable while maintaining protection during procedures. The helmet and its accompanying personal protective equipment allow surgeons to clearly see and operate while preventing them from infecting patients.
Introduced in January 2021, the new helmet is Stryker’s lightest and quietest, featuring a 40 percent noise reduction compared to previous models. Its interior foam conforms to surgeons’ heads, and the helmet itself is designed for better balance and ergonomics.
The T2 Alpha Femur Retrograde Nailing System debuted last August and features a redefined data-driven nail design, an advanced locking screw option that provides axial stability where desired, and a dedicated proximal targeting system designed to reduce the number of X-ray shots compared to freehand locking.
The Citrelock system offers surgeons a differentiated design through a tendon thread containing Citregen, a resorbable technology comprised of citrate, calcium, and phosphate—the molecules inherent to bone anatomy.
Citregen has a material polymer structure that mimics an extracellular matrix protein network. Citregen maintains its structural integrity during the healing phase, too, while the implant is replaced by host tissue over time.
Unveiled in mid-September last year, Citrelock features a controlled and homogeneous resorption process designed to prevent bulk degradation and chronic inflammation while offering strength comparable to cortical bone with a modulus comparable to cancellous bone, according to Stryker.
“Our customers are looking for a more predictable and effective bioresorbable materials than what is currently on the market,” Michael Rankin, vice president, marketing and medical education for Stryker’s Foot & Ankle business, said upon Citrelock’s release. “The Citrelock Tendon Fixation Device System helps fill that need...Citregen is an exciting addition to Stryker’s existing biomaterial portfolio and will be expanded for use in additional Trauma & Extremities indications in the future.”
Trauma and Extremities followed the Citrelock release with the November launch of the Prophecy Infinity Resect-Through Guides for total ankle replacements. The Guides enable surgeons to take fewer steps in total ankle replacement procedures compared with the Prophecy standard pin-through technique. The system helps increase OR efficiency, as only one guide is needed for both drilling and cutting. Metal guides maintain cutting stability, while optional holes can couple alignment for the talus. The system also uses fluoroscopic visualization for better coronal alignment views, positioning, and implant sizing.
In addition to its expanded capabilities in Trauma and Extremities and surgery, Stryker broadened its array of Endoscopy and digital solutions via acquisition. The company completed deals for both Thermedx and Gauss Surgical; the former transaction helps Stryker improve visualization in women’s health and elevates the standard of care in urology, while the latter purchase gives it ownership of an artificial intelligence-enabled platform for real-time monitoring of blood loss during surgery.
“Gauss Surgical’s Triton technology will help fill the void of quantifying blood loss to enable accuracy, early detection of hemorrhage and prevention of maternal morbidity,” Dylan Crotty, president of Stryker’s Instruments division, said when the deal closed in September 2021. “Our belief is that Triton technology will help improve the industry standards for quantifying blood loss in the labor and delivery department...”
$17.10 Billion
Prior Fiscal: $14.35 Billion
Percentage Change: +19.2%
R&D Expenditure: $1.23B
Best FY21 Quarter: Q4 $4.29B
Latest Quarter: Q1 $4.27B
No. of Employees: 46,000
Global Headquarters: Kalamazoo, Mich.
KEY EMPLOYEES:
Kevin A. Lobo, Board Chair, CEO, and President
Glenn S. Boehnlein, VP, CFO
Viju S. Menon, Group President, Global Quality and Operations
J. Andrew Pierce, Group President, MedSurg and Neurotechnology
Spencer S. Stiles, Group President, Orthopaedics and Spine
Yin C. Becker, VP, Chief Corporate Affairs Officer
Dana S. McMahon, VP, Chief Compliance Officer
Jody K. Powell, VP, Global Regulatory Affairs and Quality Assurance
The irony was unmistakable.
And a bit surreal.
For a few brief seconds, Jeff Brantley’s mind could not comprehend the sight before his eyes.
The milk carton was on the floor.
It had been sitting in his refrigerator less than a minute ago, and now it was on the floor.
How? Why?
Brantley’s shoulder promptly answered those questions. Specifically, the pain in his shoulder provided the answers.
At that point, reality kicked in and Brantley realized how the milk carton wound up on the floor—he was reaching for the milk when a lightning bolt of pain shot down his right arm—his pitching arm.
The pain was baffling to Brantley, a former Major League Baseball pitcher who hurled bullets for the San Francisco Giants, Cincinnati Reds, Philadelphia Phillies, St. Louis Cardinals, and Texas Rangers. The 1990 All-Star led the National League in 1996 with 44 saves (2.41 ERA), and struck out 728 batters throughout his 14-year career.
Brantley couldn’t comprehend how an arm once capable of throwing 92-mph fastballs could suddenly stop working. “I was really concerned because I’m right-handed,” he said. “I can’t even get a carton of milk out of the refrigerator? I’m a pro athlete. I should be able to do that in my sleep.”
In theory, perhaps.
The shoulder is the body’s most mobile joint, facilitated by a junction of flexible tendons and ligaments that store vast amounts of elastic energy. This elasticity—and outward-facing shoulders—gives humans the ability to throw faster and further than any other animal (chimps, for instance, can only throw 20 mph at best).
The shoulder’s tendons and ligaments are thick and short; as such, they stretch like an elastic band when the arm is cocked in pre-throw preparation. Once the arm whips forward, those fibers spring back to their original positions and release their elastic energy, propelling the ball (or other object) from the thrower’s hand.
Kind of like a slingshot.
The best slingshots, of course, are those with new bands, as their elasticity can wane over time.
“At the end of the day, despite the fact that we evolved to throw,” noted George Washington University anthropologist Dr. Neil Roach, “when we overuse this ability it can end up injuring us.”
Those injuries can be serious, too. Brantley—who pitched 859 innings, facing 3,644 batters over the course of his career—replaced his deteriorating shoulder with one made by Kalamazoo, Mich.-based Stryker Corp. Surgeons allayed Brantley’s concerns about the procedure by previewing it through Stryker’s Blueprint 3D Planning software.
Gained through the $5.6 billion Wright Medical acquisition, Blueprint allows surgeons to virtually position and create a patient-matched shoulder implant. Studies have shown 3D pre-operative planning software results in more accurate glenoid positioning compared with standard techniques.
Blueprint is among the features Stryker built into its latest shoulder implant, the Tornier Perform Humeral Stem. Formally introduced last summer, the Perform Stem was designed with four collar diameters and is available in multiple lengths to optimize the humeral fit and provide size options to surgeons. The smaller stem sizes are ideal for addressing smaller patient anatomies, according to Stryker.
The Tornier Perform Humeral Stem is compatible with Stryker’s full line of standard and augmented Perform glenoid options for anatomic and reversed procedures.
“We’re delivering on our mission to make healthcare better—for surgeons and the patients they serve,” Mike Panos, president of Stryker’s Trauma & Extremities division, said when Perform made its debut. “The Tornier shoulder arthroplasty portfolio will set Stryker apart in the shoulder market.”
Such differentiation clearly drove Stryker’s 2019 purchase of Wright Medical, as the deal added both the Tornier and Aequalis product lineups to the multinational’s meager shoulder portfolio.
Stryker further bolstered its shoulder solutions last summer with the U.S. Food and Drug Administration (FDA) de novo clearance of its InSpace balloon implant, an arthroscopic treatment for massive irreparable rotator cuff tears (MIRCT). InSpace restores the shoulder’s subacromial space without sutures or fixation devices, and is considered the first product of its kind in the U.S. market.
Not unlike the Tornier portfolio, Stryker gained the InSpace balloon technology via its 2019 deal for OrthoSpace Ltd. ($220 million). The biodegradable solution is affirmed by more than a decade of clinical data and 29,000 outside-U.S. implantations as well as a Level I study in North America.
“...InSpace provides a new surgical option for surgeons to address their unmet MIRCT needs in the shoulder continuum of care,” Matt Moreau, Stryker’s Sports Medicine vice president and general manager, said upon the FDA clearance. “...InSpace offers a unique opportunity for us to better partner with our customers on their clinical objectives to improve patient outcomes around a very challenging pathology in the shoulder.”
InSpace was one of several innovations unveiled last year within Stryker’s Trauma and Extremities franchise—the most profitable for the company. Sales in this division outpaced the other 10, skyrocketing 54.6% to $2.66 billion.
Trauma and Extremities’ strong showing in 2021 helped boost Orthopaedics and Spine Segment proceeds 26% to $7.57 billion. Each of the segment’s five franchises achieved double-digit revenue growth, with Other leading the way at 18.2% ($549 million), followed by Knees at 18% ($1.84 billion), Spine at 11.5% ($1.16 billion), and Hips at 11.2% ($1.34 billion).
The MedSurg and Neurotechnology segment mostly followed the same pattern: Neuro Cranial expanded sales 25% ($1.21 billion), while Neurovascular topped out revenue at 22% ($1.18 billion), and Endoscopy posted a 21.5% gain ($2.14 billion). Other sales swelled 10.4% to $277 million, and Medical proceeds climbed 3.3% to $2.6 billion. Overall MedSug and Neurotechnology Segment revenue ballooned 14.3% to $9.53 billion.
The dynamic growth in Stryker’s two reporting segments lifted total FY21 sales 19.2% to $17.1 billion. Gross profit rose 21.1% to $10.96 billion, operating income jumped 16.2% to $2.58 billion, and net earnings improved 24.7% to $1.99 billion.
“Stryker delivered above-market sales growth with strong earnings and cash flow in 2021,” Chair and CEO Kevin A. Lobo told shareholders in the company’s 2021 annual report. “Stryker’s innovative spirit is alive and well as we continue to launch new products and pursue acquisitions to fuel growth across our business units.”
Those new products included the Citrelock Tendon Fixation Device System, T2 Alpha Femur Retrograde Nailing System, and Prophecy Infinity Resect-Through Guides in Trauma and Extremities; and the T7 personal protection system in Other.
The T7 and T7 plus is a next-generation protective helmet and system that keeps surgeons cool and comfortable while maintaining protection during procedures. The helmet and its accompanying personal protective equipment allow surgeons to clearly see and operate while preventing them from infecting patients.
Introduced in January 2021, the new helmet is Stryker’s lightest and quietest, featuring a 40 percent noise reduction compared to previous models. Its interior foam conforms to surgeons’ heads, and the helmet itself is designed for better balance and ergonomics.
The T2 Alpha Femur Retrograde Nailing System debuted last August and features a redefined data-driven nail design, an advanced locking screw option that provides axial stability where desired, and a dedicated proximal targeting system designed to reduce the number of X-ray shots compared to freehand locking.
The Citrelock system offers surgeons a differentiated design through a tendon thread containing Citregen, a resorbable technology comprised of citrate, calcium, and phosphate—the molecules inherent to bone anatomy.
Citregen has a material polymer structure that mimics an extracellular matrix protein network. Citregen maintains its structural integrity during the healing phase, too, while the implant is replaced by host tissue over time.
Unveiled in mid-September last year, Citrelock features a controlled and homogeneous resorption process designed to prevent bulk degradation and chronic inflammation while offering strength comparable to cortical bone with a modulus comparable to cancellous bone, according to Stryker.
“Our customers are looking for a more predictable and effective bioresorbable materials than what is currently on the market,” Michael Rankin, vice president, marketing and medical education for Stryker’s Foot & Ankle business, said upon Citrelock’s release. “The Citrelock Tendon Fixation Device System helps fill that need...Citregen is an exciting addition to Stryker’s existing biomaterial portfolio and will be expanded for use in additional Trauma & Extremities indications in the future.”
Trauma and Extremities followed the Citrelock release with the November launch of the Prophecy Infinity Resect-Through Guides for total ankle replacements. The Guides enable surgeons to take fewer steps in total ankle replacement procedures compared with the Prophecy standard pin-through technique. The system helps increase OR efficiency, as only one guide is needed for both drilling and cutting. Metal guides maintain cutting stability, while optional holes can couple alignment for the talus. The system also uses fluoroscopic visualization for better coronal alignment views, positioning, and implant sizing.
In addition to its expanded capabilities in Trauma and Extremities and surgery, Stryker broadened its array of Endoscopy and digital solutions via acquisition. The company completed deals for both Thermedx and Gauss Surgical; the former transaction helps Stryker improve visualization in women’s health and elevates the standard of care in urology, while the latter purchase gives it ownership of an artificial intelligence-enabled platform for real-time monitoring of blood loss during surgery.
“Gauss Surgical’s Triton technology will help fill the void of quantifying blood loss to enable accuracy, early detection of hemorrhage and prevention of maternal morbidity,” Dylan Crotty, president of Stryker’s Instruments division, said when the deal closed in September 2021. “Our belief is that Triton technology will help improve the industry standards for quantifying blood loss in the labor and delivery department...”