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Stryker reported 4Q19 orthopedic revenue of USD $2,110.1 million, +8.8% vs. 4Q18, with full year 2019 revenue of $7,741.5 million, +8.6% vs. 2018. The company’s performance was largely driven by the continuing adoption of the Mako robotic platform in addition to 3D-printed cementless knee implants. Global Mako placements grew 65% for the quarter and 39% for the year, giving Stryker an install base of approximately 860 robots with close to 700 of those in the U.S. Between 55% to 60% of the year’s Mako placements were in competitive accounts.
Utilization rates continued to climb as well, with total Mako procedures growing 48% for the quarter and 50% for the year. Stryker leadership sees ample room for Mako to grow as the company is in the early stages of expanding its indications to spine and shoulders. In January 2020, the company received approval for the Mako partial knee indication in Japan, adding to the indications for total knees and total hips. Stryker sees Japan as a significant market opportunity.
- In 2Q20 the company will release an updated version of Mako’s hip software that improves the registration process.
- For 2019, approximately 36% of all Stryker U.S. knee replacement procedures used the company’s 3D-printed cementless implant.
- After early integration challenges with K2M, Stryker leadership believes salesforce and manufacturing issues are behind them and expect an acceleration of sales growth in 2020.
- Leadership called out trauma as a remaining “soft spot” in the company’s portfolio, but expect the T2 Alpha launch to drive above-market growth in 2020.
- For 2020, the company expects organic growth in the range of 6.5% to 7.5%.
“While it is still a longer selling cycle, we are seeing robotics move up ahead of other capital requests in the queue with hospitals, given the growing demand and acceptance of robotics.” – Katherine Owen, Stryker VP of Strategy and Investor Relations
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,128.8 | $1,038.2 | $90.6 | 8.7% |
| Knees | $625.2 | $564.7 | $60.5 | 10.7% |
| Hips | $455.8 | $429.3 | $26.5 | 6.2% |
| Extremities | $47.9 | $44.2 | $3.6 | 8.2% |
| Spine | $276.7 | $233.7 | $42.9 | 18.4% |
| Trauma | $401.8 | $388.6 | $13.2 | 3.4% |
| Sports Medicine | $166.0 | $151.7 | $14.3 | 9.4% |
| Orthobiologics | $62.8 | $59.7 | $3.1 | 5.2% |
| Other (CMF) | $74.0 | $68.0 | $6.0 | 8.8% |
| Total | $2,110.1 | $1,940.0 | $170.1 | 8.8% |
| FY19 | FY18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $4,009.2 | $3,767.6 | $241.6 | 6.4% |
| Knees | $2,183.3 | $2,027.8 | $155.5 | 7.7% |
| Hips | $1,652.1 | $1,578.5 | $73.6 | 4.7% |
| Extremities | $173.9 | $161.3 | $12.6 | 7.8% |
| Spine | $1,035.1 | $789.9 | $245.2 | 31% |
| Trauma | $1,482.7 | $1,425.9 | $56.8 | 4% |
| Sports Medicine | $670.4 | $626.7 | $43.7 | 7% |
| Orthobiologics | $248.4 | $233.4 | $15.0 | 6.4% |
| Other (CMF) | $295.6 | $282.5 | $13.1 | 4.6% |
| Total | $7,741.5 | $7,126.1 | $615.4 | 8.6% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,552.3 | $1,414.6 | $137.7 | 9.7% |
| Ex-US | $557.8 | $525.4 | $32.4 | 6.2% |
| EMEA | $284.5 | $265.3 | $19.2 | 7.2% |
| Asia Pacific | $232.9 | $220.7 | $12.2 | 5.5% |
| Other | $40.4 | $39.4 | $1.0 | 2.6% |
| Total | $2,110.1 | $1,940.0 | $170.1 | 8.8% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,131.0 | |
| Cost of Sales | ($1,428.0) | 34.6% |
| Selling and Admin | ($1,380.0) | 33.4% |
| R & D | ($254.0) | 6.1% |
| Other | ($344.0) | 8.3% |
| Net Earnings | $725.0 | 17.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Stryker reported 4Q19 orthopedic revenue of USD $2,110.1 million, +8.8% vs. 4Q18, with full year 2019 revenue of $7,741.5 million, +8.6% vs. 2018. The company’s performance was largely driven by the continuing adoption of the Mako robotic platform in addition to 3D-printed cementless knee implants. Global Mako placements grew 65% for the...
Stryker reported 4Q19 orthopedic revenue of USD $2,110.1 million, +8.8% vs. 4Q18, with full year 2019 revenue of $7,741.5 million, +8.6% vs. 2018. The company’s performance was largely driven by the continuing adoption of the Mako robotic platform in addition to 3D-printed cementless knee implants. Global Mako placements grew 65% for the quarter and 39% for the year, giving Stryker an install base of approximately 860 robots with close to 700 of those in the U.S. Between 55% to 60% of the year’s Mako placements were in competitive accounts.
Utilization rates continued to climb as well, with total Mako procedures growing 48% for the quarter and 50% for the year. Stryker leadership sees ample room for Mako to grow as the company is in the early stages of expanding its indications to spine and shoulders. In January 2020, the company received approval for the Mako partial knee indication in Japan, adding to the indications for total knees and total hips. Stryker sees Japan as a significant market opportunity.
- In 2Q20 the company will release an updated version of Mako’s hip software that improves the registration process.
- For 2019, approximately 36% of all Stryker U.S. knee replacement procedures used the company’s 3D-printed cementless implant.
- After early integration challenges with K2M, Stryker leadership believes salesforce and manufacturing issues are behind them and expect an acceleration of sales growth in 2020.
- Leadership called out trauma as a remaining “soft spot” in the company’s portfolio, but expect the T2 Alpha launch to drive above-market growth in 2020.
- For 2020, the company expects organic growth in the range of 6.5% to 7.5%.
“While it is still a longer selling cycle, we are seeing robotics move up ahead of other capital requests in the queue with hospitals, given the growing demand and acceptance of robotics.” – Katherine Owen, Stryker VP of Strategy and Investor Relations
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,128.8 | $1,038.2 | $90.6 | 8.7% |
| Knees | $625.2 | $564.7 | $60.5 | 10.7% |
| Hips | $455.8 | $429.3 | $26.5 | 6.2% |
| Extremities | $47.9 | $44.2 | $3.6 | 8.2% |
| Spine | $276.7 | $233.7 | $42.9 | 18.4% |
| Trauma | $401.8 | $388.6 | $13.2 | 3.4% |
| Sports Medicine | $166.0 | $151.7 | $14.3 | 9.4% |
| Orthobiologics | $62.8 | $59.7 | $3.1 | 5.2% |
| Other (CMF) | $74.0 | $68.0 | $6.0 | 8.8% |
| Total | $2,110.1 | $1,940.0 | $170.1 | 8.8% |
| FY19 | FY18 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $4,009.2 | $3,767.6 | $241.6 | 6.4% |
| Knees | $2,183.3 | $2,027.8 | $155.5 | 7.7% |
| Hips | $1,652.1 | $1,578.5 | $73.6 | 4.7% |
| Extremities | $173.9 | $161.3 | $12.6 | 7.8% |
| Spine | $1,035.1 | $789.9 | $245.2 | 31% |
| Trauma | $1,482.7 | $1,425.9 | $56.8 | 4% |
| Sports Medicine | $670.4 | $626.7 | $43.7 | 7% |
| Orthobiologics | $248.4 | $233.4 | $15.0 | 6.4% |
| Other (CMF) | $295.6 | $282.5 | $13.1 | 4.6% |
| Total | $7,741.5 | $7,126.1 | $615.4 | 8.6% |
Geographic Sales
| 4Q19 | 4Q18 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,552.3 | $1,414.6 | $137.7 | 9.7% |
| Ex-US | $557.8 | $525.4 | $32.4 | 6.2% |
| EMEA | $284.5 | $265.3 | $19.2 | 7.2% |
| Asia Pacific | $232.9 | $220.7 | $12.2 | 5.5% |
| Other | $40.4 | $39.4 | $1.0 | 2.6% |
| Total | $2,110.1 | $1,940.0 | $170.1 | 8.8% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,131.0 | |
| Cost of Sales | ($1,428.0) | 34.6% |
| Selling and Admin | ($1,380.0) | 33.4% |
| R & D | ($254.0) | 6.1% |
| Other | ($344.0) | 8.3% |
| Net Earnings | $725.0 | 17.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. 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.
