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Stryker reported 4Q20 orthopedic revenue of USD $2,178.6 million, +2.1% vs. 4Q19 with full-year 2020 revenue of $7,193.7 million, -7.1% vs. 2019. The late-year COVID surge negatively impacted company sales most significantly in the U.S. and Western Europe. However, given the regional variability of infections and restrictions, Stryker saw growth in some emerging markets like China.
Despite a soft quarter for knee and hip replacement sales, Stryker sold and installed over 100 Mako units in 4Q. For the full year, Mako’s installed base grew +33%. Company leadership pointed to ASCs as a key driver for Mako sales. Per Stryker, 44% of its total knee implants are performed using Mako and 42% of its U.S. knee implant sales are cementless.
In the fourth quarter, Stryker embarked on its next large integration as it folds Wright Medical into the organization. Stryker’s legacy extremity business will combine with Wright Medical and run under the Trauma and Extremities division. Functionally, however, Wright Medical’s upper extremities team will operate largely as-is. Stryker CEO Kevin Lobo said, “On the foot and ankle side there is more of a true integration that’s happening between the Stryker business and the Wright business. But for the upper extremity side, it’s just bringing them into Stryker and continuing on with the growth that they’ve had.”
Stryker leadership said the company’s customizable ASC plans already exceeded expectations. With a wide-ranging portfolio, market-leading robotics and now an expanded extremity line-up, Stryker is well-positioned for the continued procedure shift toward ASCs.
The company expects 2021 organic growth in the range of +8% to +10% vs. 2019.
“The trend of the ASC was already accelerating prior to the pandemic. It’s going to continue without a doubt, especially for hip and knee procedures, foot and ankle procedures, even some of the spine procedures. Now we have reimbursement coverage for hips as well as knees through Medicare. And these surgery centers make good money. They’re very profitable. They don’t have the burden of the cost of a large inpatient hospital. You can debate the actual pace of the curve, but there is no doubt in my mind that this is a trend that’s going to continue to accelerate.” – Kevin Lobo, Stryker CEO
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
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,151.7 | $1,123.8 | $27.9 | 2.5% |
| Knees | $572.5 | $623.4 | ($50.9) | (8.2%) |
| Hips | $418.3 | $453.6 | ($35.3) | (7.8%) |
| Extremities | $160.8 | $46.8 | $114.0 | 243.5% |
| Spine | $292.9 | $297.6 | ($4.8) | (1.6%) |
| Trauma | $414.2 | $401.3 | $12.9 | 3.2% |
| Sports Medicine | $185.7 | $170.4 | $15.3 | 9% |
| Orthobiologics | $66.4 | $66.3 | $0.1 | 0.1% |
| Other (CMF) | $67.7 | $74.0 | ($6.3) | (8.5%) |
| Total | $2,178.6 | $2,133.5 | $45.1 | 2.1% |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3,653.3 | $4,005.2 | ($351.9) | (8.8%) |
| Knees | $1,916.1 | $2,178.5 | ($262.4) | (12%) |
| Hips | $1,463.6 | $1,654.9 | ($191.3) | (11.6%) |
| Extremities | $273.6 | $171.8 | $101.8 | 59.2% |
| Spine | $998.8 | $1,103.3 | ($104.5) | (9.5%) |
| Trauma | $1,456.6 | $1,486.7 | ($30.1) | (2%) |
| Sports Medicine | $574.8 | $607.0 | ($32.1) | (5.3%) |
| Orthobiologics | $234.9 | $247.3 | ($12.4) | (5%) |
| Other (CMF) | $275.2 | $295.6 | ($20.4) | (6.9%) |
| Total | $7,193.7 | $7,745.1 | ($551.4) | (7.1%) |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,535.9 | $1,474.2 | $61.7 | 4.2% |
| OUS | $642.7 | $659.2 | ($16.6) | (2.5%) |
| EMEA | $289.7 | $311.5 | ($21.7) | (7%) |
| Asia Pacific | $298.5 | $290.2 | $8.3 | 2.9% |
| Rest of World | $54.5 | $57.6 | ($3.1) | (5.5%) |
| Total | $2,178.6 | $2,133.5 | $45.1 | 2.1% |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $5,058.6 | $5,324.0 | ($265.3) | (5%) |
| OUS | $2,135.0 | $2,421.2 | ($286.1) | (11.8%) |
| EMEA | $991.2 | $1,136.3 | ($145.1) | (12.8%) |
| Asia Pacific | $962.7 | $1,064.4 | ($101.7) | (9.6%) |
| Rest of World | $181.1 | $220.4 | ($39.3) | (17.8%) |
| Total | $7,193.7 | $7,745.1 | ($551.4) | (7.1%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,262.0 | |
| Cost of Sales | $1,545.0 | 36.3% |
| Selling and Admin | $1,562.0 | 36.6% |
| R & D | $255.0 | 6% |
| Other | $332.0 | 7.8% |
| Net Earnings | $568.0 | 13.3% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Stryker reported 4Q20 orthopedic revenue of USD $2,178.6 million, +2.1% vs. 4Q19 with full-year 2020 revenue of $7,193.7 million, -7.1% vs. 2019. The late-year COVID surge negatively impacted company sales most significantly in the U.S. and Western Europe. However, given the regional variability of infections and restrictions, Stryker saw...
Stryker reported 4Q20 orthopedic revenue of USD $2,178.6 million, +2.1% vs. 4Q19 with full-year 2020 revenue of $7,193.7 million, -7.1% vs. 2019. The late-year COVID surge negatively impacted company sales most significantly in the U.S. and Western Europe. However, given the regional variability of infections and restrictions, Stryker saw growth in some emerging markets like China.
Despite a soft quarter for knee and hip replacement sales, Stryker sold and installed over 100 Mako units in 4Q. For the full year, Mako’s installed base grew +33%. Company leadership pointed to ASCs as a key driver for Mako sales. Per Stryker, 44% of its total knee implants are performed using Mako and 42% of its U.S. knee implant sales are cementless.
In the fourth quarter, Stryker embarked on its next large integration as it folds Wright Medical into the organization. Stryker’s legacy extremity business will combine with Wright Medical and run under the Trauma and Extremities division. Functionally, however, Wright Medical’s upper extremities team will operate largely as-is. Stryker CEO Kevin Lobo said, “On the foot and ankle side there is more of a true integration that’s happening between the Stryker business and the Wright business. But for the upper extremity side, it’s just bringing them into Stryker and continuing on with the growth that they’ve had.”
Stryker leadership said the company’s customizable ASC plans already exceeded expectations. With a wide-ranging portfolio, market-leading robotics and now an expanded extremity line-up, Stryker is well-positioned for the continued procedure shift toward ASCs.
The company expects 2021 organic growth in the range of +8% to +10% vs. 2019.
“The trend of the ASC was already accelerating prior to the pandemic. It’s going to continue without a doubt, especially for hip and knee procedures, foot and ankle procedures, even some of the spine procedures. Now we have reimbursement coverage for hips as well as knees through Medicare. And these surgery centers make good money. They’re very profitable. They don’t have the burden of the cost of a large inpatient hospital. You can debate the actual pace of the curve, but there is no doubt in my mind that this is a trend that’s going to continue to accelerate.” – Kevin Lobo, Stryker CEO
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
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,151.7 | $1,123.8 | $27.9 | 2.5% |
| Knees | $572.5 | $623.4 | ($50.9) | (8.2%) |
| Hips | $418.3 | $453.6 | ($35.3) | (7.8%) |
| Extremities | $160.8 | $46.8 | $114.0 | 243.5% |
| Spine | $292.9 | $297.6 | ($4.8) | (1.6%) |
| Trauma | $414.2 | $401.3 | $12.9 | 3.2% |
| Sports Medicine | $185.7 | $170.4 | $15.3 | 9% |
| Orthobiologics | $66.4 | $66.3 | $0.1 | 0.1% |
| Other (CMF) | $67.7 | $74.0 | ($6.3) | (8.5%) |
| Total | $2,178.6 | $2,133.5 | $45.1 | 2.1% |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3,653.3 | $4,005.2 | ($351.9) | (8.8%) |
| Knees | $1,916.1 | $2,178.5 | ($262.4) | (12%) |
| Hips | $1,463.6 | $1,654.9 | ($191.3) | (11.6%) |
| Extremities | $273.6 | $171.8 | $101.8 | 59.2% |
| Spine | $998.8 | $1,103.3 | ($104.5) | (9.5%) |
| Trauma | $1,456.6 | $1,486.7 | ($30.1) | (2%) |
| Sports Medicine | $574.8 | $607.0 | ($32.1) | (5.3%) |
| Orthobiologics | $234.9 | $247.3 | ($12.4) | (5%) |
| Other (CMF) | $275.2 | $295.6 | ($20.4) | (6.9%) |
| Total | $7,193.7 | $7,745.1 | ($551.4) | (7.1%) |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,535.9 | $1,474.2 | $61.7 | 4.2% |
| OUS | $642.7 | $659.2 | ($16.6) | (2.5%) |
| EMEA | $289.7 | $311.5 | ($21.7) | (7%) |
| Asia Pacific | $298.5 | $290.2 | $8.3 | 2.9% |
| Rest of World | $54.5 | $57.6 | ($3.1) | (5.5%) |
| Total | $2,178.6 | $2,133.5 | $45.1 | 2.1% |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $5,058.6 | $5,324.0 | ($265.3) | (5%) |
| OUS | $2,135.0 | $2,421.2 | ($286.1) | (11.8%) |
| EMEA | $991.2 | $1,136.3 | ($145.1) | (12.8%) |
| Asia Pacific | $962.7 | $1,064.4 | ($101.7) | (9.6%) |
| Rest of World | $181.1 | $220.4 | ($39.3) | (17.8%) |
| Total | $7,193.7 | $7,745.1 | ($551.4) | (7.1%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,262.0 | |
| Cost of Sales | $1,545.0 | 36.3% |
| Selling and Admin | $1,562.0 | 36.6% |
| R & D | $255.0 | 6% |
| Other | $332.0 | 7.8% |
| Net Earnings | $568.0 | 13.3% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
