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Stryker leveraged accelerating adoption of their Mako robot and new products like the Trident II hip cup to drive another quarter of above market growth.
Quarterly Highlights
- Key sales drivers included Mako TKA, the 3D-printed Trident II hip cup, increasing Mako utilization for hip procedures and strong sales of shoulder implants.
- Above-market growth in knees is largely attributable to share taken through Mako placements in competitive accounts, with only minor benefits from sales mix.
- The integration of K2M completed milestone activities of product training and cross selling within the quarter.
- Trauma remains impacted by supply chain issues from the first quarter.
- Instrument sales grew in the double digits for the company. Leadership cautioned that the outsized growth is a transient “extra pop,” although instrument sales for the year are strong overall.
Mako Update
- 44 global installs for the quarter (35 U.S), +12% vs. 2Q18
- Installed base of over 700 robots, with close to 600 in the U.S.
- Approximately 27,000 total U.S. Mako procedures in 2Q, +55%
- Approximately 18,000 U.S. Mako TKA procedures in 2Q, +78%
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement | $964.8 | $921.4 | $43.4 | 4.7% |
| Knees | $525.0 | $497.6 | $27.4 | 5.5% |
| Hips | $409.0 | $394.9 | $14.1 | 3.6% |
| Extremities | $30.8 | $29.0 | $1.9 | 6.4% |
| Spine | $264.3 | $190.2 | $74.0 | 38.9% |
| Trauma | $365.7 | $359.9 | $5.7 | 1.6% |
| Sports Medicine | $184.4 | $174.0 | $10.4 | 6.0% |
| Orthobiologics | $63.7 | $58.9 | $4.8 | 8.1% |
| Other | $73.8 | $68.0 | $5.8 | 8.5% |
| Total | $1,916.7 | $1,772.5 | $144.2 | 8.1% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement | $1,909.9 | $1,823.2 | $86.7 | 4.8% |
| Knees | $1,040.4 | $987.0 | $53.4 | 5.4% |
| Hips | $804.9 | $775.6 | $29.3 | 3.8% |
| Extremities | $64.6 | $60.6 | $4.0 | 6.5% |
| Spine | $508.8 | $366.9 | $141.9 | 38.7% |
| Trauma | $733.5 | $722.6 | $11.0 | 1.5% |
| Sports Medicine | $367.7 | $347.6 | $20.1 | 5.8% |
| Orthobiologics | $125.9 | $115.4 | $10.5 | 9.1% |
| Other | $152.6 | $143.1 | $9.5 | 6.7% |
| Total | $3,798.4 | $3,518.8 | $279.7 | 7.9% |
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $1,403.0 | $1,272.6 | $130.4 | 10.3% |
| Ex-US | $513.7 | $500.0 | $13.7 | 2.7% |
| EMEA | $256.8 | $247.5 | $9.4 | 3.8% |
| Asia Pacific | $205.5 | $202.5 | $3.0 | 1.5% |
| Other | $51.4 | $50.0 | $1.4 | 2.7% |
| Total | $1,916.7 | $1,772.5 | $144.2 | 8.1% |
Net Earnings Data
Net earnings, inclusive of all Stryker revenue, is as follows ($MM):
| Amt | % of Sales | |
| Sales | $3,650.0 | |
| Cost of Sales | -$1,270.0 | 34.8% |
| Selling and Admin | -$1,282.0 | 35.1% |
| R & D | -$246.0 | 6.7% |
| Other | -$372.0 | 10.2% |
| Net Earnings | $480.0 | 13.2% |
Sources: Stryker; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Stryker leveraged accelerating adoption of their Mako robot and new products like the Trident II hip cup to drive another quarter of above market growth.
Quarterly Highlights
Key sales drivers included Mako TKA, the 3D-printed Trident II hip cup, increasing Mako utilization for hip procedures and strong...
Stryker leveraged accelerating adoption of their Mako robot and new products like the Trident II hip cup to drive another quarter of above market growth.
Quarterly Highlights
- Key sales drivers included Mako TKA, the 3D-printed Trident II hip cup, increasing Mako utilization for hip procedures and strong sales of shoulder implants.
- Above-market growth in knees is largely attributable to share taken through Mako placements in competitive accounts, with only minor benefits from sales mix.
- The integration of K2M completed milestone activities of product training and cross selling within the quarter.
- Trauma remains impacted by supply chain issues from the first quarter.
- Instrument sales grew in the double digits for the company. Leadership cautioned that the outsized growth is a transient “extra pop,” although instrument sales for the year are strong overall.
Mako Update
- 44 global installs for the quarter (35 U.S), +12% vs. 2Q18
- Installed base of over 700 robots, with close to 600 in the U.S.
- Approximately 27,000 total U.S. Mako procedures in 2Q, +55%
- Approximately 18,000 U.S. Mako TKA procedures in 2Q, +78%
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement | $964.8 | $921.4 | $43.4 | 4.7% |
| Knees | $525.0 | $497.6 | $27.4 | 5.5% |
| Hips | $409.0 | $394.9 | $14.1 | 3.6% |
| Extremities | $30.8 | $29.0 | $1.9 | 6.4% |
| Spine | $264.3 | $190.2 | $74.0 | 38.9% |
| Trauma | $365.7 | $359.9 | $5.7 | 1.6% |
| Sports Medicine | $184.4 | $174.0 | $10.4 | 6.0% |
| Orthobiologics | $63.7 | $58.9 | $4.8 | 8.1% |
| Other | $73.8 | $68.0 | $5.8 | 8.5% |
| Total | $1,916.7 | $1,772.5 | $144.2 | 8.1% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement | $1,909.9 | $1,823.2 | $86.7 | 4.8% |
| Knees | $1,040.4 | $987.0 | $53.4 | 5.4% |
| Hips | $804.9 | $775.6 | $29.3 | 3.8% |
| Extremities | $64.6 | $60.6 | $4.0 | 6.5% |
| Spine | $508.8 | $366.9 | $141.9 | 38.7% |
| Trauma | $733.5 | $722.6 | $11.0 | 1.5% |
| Sports Medicine | $367.7 | $347.6 | $20.1 | 5.8% |
| Orthobiologics | $125.9 | $115.4 | $10.5 | 9.1% |
| Other | $152.6 | $143.1 | $9.5 | 6.7% |
| Total | $3,798.4 | $3,518.8 | $279.7 | 7.9% |
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $1,403.0 | $1,272.6 | $130.4 | 10.3% |
| Ex-US | $513.7 | $500.0 | $13.7 | 2.7% |
| EMEA | $256.8 | $247.5 | $9.4 | 3.8% |
| Asia Pacific | $205.5 | $202.5 | $3.0 | 1.5% |
| Other | $51.4 | $50.0 | $1.4 | 2.7% |
| Total | $1,916.7 | $1,772.5 | $144.2 | 8.1% |
Net Earnings Data
Net earnings, inclusive of all Stryker revenue, is as follows ($MM):
| Amt | % of Sales | |
| Sales | $3,650.0 | |
| Cost of Sales | -$1,270.0 | 34.8% |
| Selling and Admin | -$1,282.0 | 35.1% |
| R & D | -$246.0 | 6.7% |
| Other | -$372.0 | 10.2% |
| Net Earnings | $480.0 | 13.2% |
Sources: Stryker; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
