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Stryker reported 2Q21 orthopedic revenue of USD $2,263.6 million, +77.3% vs. 2Q20. Compared to the second quarter of 2019, the company grew by +19.2%. For the full year 2021, Stryker expects between +9% and +10% organic sales growth compared to 2019.
Trauma and upper extremity sales in the U.S. along with strong demand for Mako drove the company’s continued momentum in the second quarter. Upper extremity sales benefitted from the increasing adoption of the Blueprint planning software acquired along with Wright Medical, with the system now used in approximately 50% of Stryker’s shoulder cases. While total ankle replacement did well in the quarter, company leadership said the rest of the foot and ankle space is more “discretionary” leading to lagging podiatric volume recovery. Inclusive of Wright Medical, Stryker expects its trauma and extremities division to grow 6% in 2021 compared to 2019.
The pandemic did little to slow Stryker’s success with Mako sales in the U.S., but international placements slowed in 2020. However, sales of the system are ramping up internationally once again. The company cited Japan, China, Brazil and Russia as “fully operational” markets for Mako. Stryker sees spinal robotics as a portfolio gap that it intends to fill, but does not have a definitive timeline for doing so.
The company’s integration of Wright Medical is proceeding ahead of schedule, indicating that Stryker learned valuable lessons in its struggle to integrate K2M. Stryker CEO Kevin Lobo was effusive in his praise of Wright, saying he was delighted and pleasantly surprised at the value brought by Wright beyond its products. He pointed to the infusion of talent from Wright Medical’s management team as well as Wright’s cachet with top key opinion leaders.
“We do have a gap in spine robotics, and we believe that the two competitive systems on the market today are really good guidance systems for the placement of pedicle screws. But it’s providing value to surgeons, and we definitely want to have something like that on the market. Beyond that, we think Mako could get into other procedures and other applications. Robotics is difficult, so it’s going to take time for us to develop those applications. But we are big believers in enabling technology, and we’re going to continue to invest in that space.” – Stryker CEO Kevin Lobo
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
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,176.1 | $607.5 | $568.5 | 93.6% |
| Knees | $569.7 | $310.9 | $258.8 | 83.2% |
| Hips | $420.8 | $268.7 | $152.1 | 56.6% |
| Extremities | $185.6 | $28.0 | $157.6 | 563.3% |
| Spine | $292.9 | $169.3 | $123.6 | 73% |
| Trauma | $486.9 | $299.8 | $187.2 | 62.4% |
| Sports Medicine | $160.2 | $94.7 | $65.5 | 69.2% |
| Orthobiologics | $70.4 | $45.4 | $25.0 | 55.1% |
| Other (CMF) | $77.1 | $60.2 | $16.9 | 28.1% |
| Total | $2,263.6 | $1,276.9 | $986.7 | 77.3% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,226.8 | $1,531.5 | $695.3 | 45.4% |
| Knees | $1,072.1 | $819.6 | $252.6 | 30.8% |
| Hips | $793.7 | $643.9 | $149.8 | 23.3% |
| Extremities | $361.0 | $68.1 | $293.0 | 430.3% |
| Spine | $558.1 | $417.8 | $140.2 | 33.6% |
| Trauma | $949.1 | $656.1 | $293.0 | 44.7% |
| Sports Medicine | $311.5 | $231.0 | $80.5 | 34.8% |
| Orthobiologics | $136.5 | $103.5 | $33.0 | 31.9% |
| Other (CMF) | $150.0 | $130.6 | $19.4 | 14.8% |
| Total | $4,332.1 | $3,070.6 | $1,261.5 | 41.1% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,653.1 | $933.6 | $719.5 | 77.1% |
| OUS | $610.5 | $343.2 | $267.2 | 77.9% |
| EMEA | $294.3 | $153.2 | $141.0 | 92% |
| Asia Pacific | $271.6 | $153.2 | $118.4 | 77.3% |
| Rest of World | $44.6 | $36.8 | $7.8 | 21.2% |
| Total | $2,263.6 | $1,276.9 | $986.7 | 77.3% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $3,121.2 | $2,267.7 | $853.5 | 37.6% |
| OUS | $1,210.9 | $802.9 | $408.0 | 50.8% |
| EMEA | $573.5 | $372.1 | $201.5 | 54.1% |
| Asia Pacific | $530.2 | $341.6 | $188.6 | 55.2% |
| Rest of World | $107.2 | $89.2 | $18.0 | 20.1% |
| Total | $4,332.1 | $3,070.6 | $1,261.5 | 41.1% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,294.0 | |
| Cost of Sales | $1,522.0 | 35.4% |
| Selling and Admin | $1,505.0 | 35% |
| R & D | $310.0 | 7.2% |
| Other | $365.0 | 8.5% |
| Net Earnings | $592.0 | 13.8% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Stryker reported 2Q21 orthopedic revenue of USD $2,263.6 million, +77.3% vs. 2Q20. Compared to the second quarter of 2019, the company grew by +19.2%. For the full year 2021, Stryker expects between +9% and +10% organic sales growth compared to 2019.
Trauma and upper extremity sales in the U.S. along with strong demand for Mako drove the...
Stryker reported 2Q21 orthopedic revenue of USD $2,263.6 million, +77.3% vs. 2Q20. Compared to the second quarter of 2019, the company grew by +19.2%. For the full year 2021, Stryker expects between +9% and +10% organic sales growth compared to 2019.
Trauma and upper extremity sales in the U.S. along with strong demand for Mako drove the company’s continued momentum in the second quarter. Upper extremity sales benefitted from the increasing adoption of the Blueprint planning software acquired along with Wright Medical, with the system now used in approximately 50% of Stryker’s shoulder cases. While total ankle replacement did well in the quarter, company leadership said the rest of the foot and ankle space is more “discretionary” leading to lagging podiatric volume recovery. Inclusive of Wright Medical, Stryker expects its trauma and extremities division to grow 6% in 2021 compared to 2019.
The pandemic did little to slow Stryker’s success with Mako sales in the U.S., but international placements slowed in 2020. However, sales of the system are ramping up internationally once again. The company cited Japan, China, Brazil and Russia as “fully operational” markets for Mako. Stryker sees spinal robotics as a portfolio gap that it intends to fill, but does not have a definitive timeline for doing so.
The company’s integration of Wright Medical is proceeding ahead of schedule, indicating that Stryker learned valuable lessons in its struggle to integrate K2M. Stryker CEO Kevin Lobo was effusive in his praise of Wright, saying he was delighted and pleasantly surprised at the value brought by Wright beyond its products. He pointed to the infusion of talent from Wright Medical’s management team as well as Wright’s cachet with top key opinion leaders.
“We do have a gap in spine robotics, and we believe that the two competitive systems on the market today are really good guidance systems for the placement of pedicle screws. But it’s providing value to surgeons, and we definitely want to have something like that on the market. Beyond that, we think Mako could get into other procedures and other applications. Robotics is difficult, so it’s going to take time for us to develop those applications. But we are big believers in enabling technology, and we’re going to continue to invest in that space.” – Stryker CEO Kevin Lobo
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
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,176.1 | $607.5 | $568.5 | 93.6% |
| Knees | $569.7 | $310.9 | $258.8 | 83.2% |
| Hips | $420.8 | $268.7 | $152.1 | 56.6% |
| Extremities | $185.6 | $28.0 | $157.6 | 563.3% |
| Spine | $292.9 | $169.3 | $123.6 | 73% |
| Trauma | $486.9 | $299.8 | $187.2 | 62.4% |
| Sports Medicine | $160.2 | $94.7 | $65.5 | 69.2% |
| Orthobiologics | $70.4 | $45.4 | $25.0 | 55.1% |
| Other (CMF) | $77.1 | $60.2 | $16.9 | 28.1% |
| Total | $2,263.6 | $1,276.9 | $986.7 | 77.3% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,226.8 | $1,531.5 | $695.3 | 45.4% |
| Knees | $1,072.1 | $819.6 | $252.6 | 30.8% |
| Hips | $793.7 | $643.9 | $149.8 | 23.3% |
| Extremities | $361.0 | $68.1 | $293.0 | 430.3% |
| Spine | $558.1 | $417.8 | $140.2 | 33.6% |
| Trauma | $949.1 | $656.1 | $293.0 | 44.7% |
| Sports Medicine | $311.5 | $231.0 | $80.5 | 34.8% |
| Orthobiologics | $136.5 | $103.5 | $33.0 | 31.9% |
| Other (CMF) | $150.0 | $130.6 | $19.4 | 14.8% |
| Total | $4,332.1 | $3,070.6 | $1,261.5 | 41.1% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,653.1 | $933.6 | $719.5 | 77.1% |
| OUS | $610.5 | $343.2 | $267.2 | 77.9% |
| EMEA | $294.3 | $153.2 | $141.0 | 92% |
| Asia Pacific | $271.6 | $153.2 | $118.4 | 77.3% |
| Rest of World | $44.6 | $36.8 | $7.8 | 21.2% |
| Total | $2,263.6 | $1,276.9 | $986.7 | 77.3% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $3,121.2 | $2,267.7 | $853.5 | 37.6% |
| OUS | $1,210.9 | $802.9 | $408.0 | 50.8% |
| EMEA | $573.5 | $372.1 | $201.5 | 54.1% |
| Asia Pacific | $530.2 | $341.6 | $188.6 | 55.2% |
| Rest of World | $107.2 | $89.2 | $18.0 | 20.1% |
| Total | $4,332.1 | $3,070.6 | $1,261.5 | 41.1% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,294.0 | |
| Cost of Sales | $1,522.0 | 35.4% |
| Selling and Admin | $1,505.0 | 35% |
| R & D | $310.0 | 7.2% |
| Other | $365.0 | 8.5% |
| Net Earnings | $592.0 | 13.8% |
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.
