Stryker is paying $13.2 million to resolve SEC allegations that it bribed health care professionals and government officials to gain business in Argentina, Greece, Mexico, Poland and Romania. But the Michigan devicemaker neither admits to, nor denies the charges as part of the settlement.
Metal hip implant recalls continued to drag down Stryker's net earnings during the 2013 quarter. While the number hit $103 million, the results reflect a drop of 70.8% over the same period a year ago, in large part because of costs relating to the company's Rejuvenate and ABG II recalls.
Stryker's stock price has slipped more than 4% since the company signed up to pay $1.7 billion for robot-assisted surgery outfit Mako last week. But despite the tepid reaction, CEO Kevin Lobo believes the deal will help shepherd Stryker into the future of med tech.
Stryker plans to pay a pretty penny for robot-assisted surgery outfit Mako, signing up to trade $1.7 billion for the company, an 86% premium to its latest closing price.
Stryker, Johnson & Johnson, Wright Medical, Smith & Nephew, Zimmer: Each makes heavily scrutinized hip and knee implants, but none offers a warranty to protect patients if something goes awry.
Stryker is recalling lots of a plate used in spinal surgeries, and the FDA has assigned its most serious tag to the problem, warning that using the device could result in serious injury or death.
On the surface, it looks like encouraging news: All but two of the top 10 medical device companies in terms of market capitalization employed more people in 2012 than they did in 2011. Even more, the overall employment jumps took place despite company warnings that the 2.3% medical device tax would cause the loss of legions of jobs as companies prepared for the tax to kick in. As EP Vantage notes, however, the tax did not make the sky fall, at least for the largest med tech companies.
Zimmer was already on the line to pay Stryker $70 million over patent infringement, and now a federal judge has more than tripled the award, ordering the company to fork over $228 million and barring it from selling the offending device.
Stryker's Kevin Lobo came aboard after the surprise ouster of Stephen MacMillan, and, in his first year at the helm of the Michigan device giant, the CEO has presided over a huge Chinese buyout, a lasting recall sting and expansions into new markets.
All-metal hip replacements have led to legions of health problems, along with thousands of surgeries to remove the device in the U.S. and many countries around the world. But the revision rate in Canada, at least, appears to be quite low.