The device industry is the source of wealth for 10 of the people on Forbes' annual list of the 400 richest people in America.
Stryker announced FDA clearance to use the Mako robotic surgery system for total hip replacement, as well as the launch of a new bone matrix, and spine-stabilizing cervical plate at the American Academy of Orthopaedic Surgeons Annual Meeting in Las Vegas.
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Smith & Nephew was down 8% on the March 3 news that Stryker now has a massive $2.6 billion authorization available for share repurchases. That's a significant shift in strategy for Stryker, which has been highly acquisitive in the last few years and has long been rumored as a potential buyer for Smith & Nephew.
Stryker is signaling that it could hit the brakes on acquisitions after an aggressive string of at least a half-dozen purchases over the past few years, including the $1.7 billion purchase of robotic surgery player Mako Surgical in December 2013.
An aggressive acquisition strategy in order to broaden its product usage in trauma units and hospitals continues to be the focus for Stryker.
Stryker CEO Kevin Lobo expounded on the importance of specialized sales forces during his presentation at the JP Morgan Healthcare Conference in San Francisco and took a jab at Smith & Nephew's contrasting rep-less pilot program, which aims to cut implant prices in half through the use of automation.
Bloomberg reports that Stryker is planning to offer a premium for the U.K.'s S&N of about 30%. Currently, the target has a valuation of about $16.3 billion. The sources say a tax inversion is not planned. However, one of the unnamed sources also says Stryker's management could change its mind.
In response to Zimmer's $13.4 billion bid for Biomet, rumor has it that Stryker will snatch up the other relatively small orthopedics player, the U.K.'s Smith & Nephew.