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Stryker entered into a definitive agreement to sell its U.S. spinal implant business to Viscogliosi Brothers and create VB Spine. The agreement includes a binding offer to acquire Stryker’s spinal implant business in France. We estimate Stryker’s global spine implant business to be about $700 million of its $11.2 billion in 2024 revenue.
The transaction is expected to close in the U.S. in 1H25. Stryker’s U.S. spinal implants business and VB Spine will continue to operate as separate entities and proceed with business as usual until the transaction closes.
After closing, VB Spine will become a strategic partner to Stryker with exclusive access to Mako Spine and Copilot for use with VB Spine’s implants in spine procedures.
The sale of Stryker’s spinal implant business in other international markets is anticipated, pending satisfaction of legal and regulatory requirements, including any required consultations.
While there was little warning or preamble to this move, it hardly qualifies as a surprise. After Stryker’s difficult integration of K2M, the company’s spine business has managed a CAGR of just 1.4% since 2019. Recent market consolidation made Stryker a distant third player with a spinal implant business that couldn’t match the innovation cadence of its competitors.
The divestiture makes sense for Stryker. It discovered, like Zimmer Biomet before it, the relative lack of synergy between spine and orthopedic franchises. Stryker can reallocate focus and resources into higher-growth areas.
The company retains its spinal enabling technology and says customers will see little difference compared to the current arrangement of Stryker capital reps and implant reps. Mako will remain exclusive to VB Spine for a time but could possibly become an open system in the future. It remains to be seen how well this model can work, given the apparent advantages of deep integration between implant and technology.
“We believe that the spinal implants business, with its comprehensive portfolio and strong sales channel, will thrive as an independent company,” said Kevin A. Lobo, Chair and Chief Executive Officer, Stryker. “With dedicated resources and a focused strategy, the business will be well positioned to succeed as part of Viscogliosi Brothers.”
“We have long admired Stryker for its comprehensive spine portfolio, incredible talent, and strong culture,” said Marc, John and Anthony Viscogliosi, Co-Founders of Viscogliosi Brothers, LLC. “We see a tremendous opportunity to provide the focus, surgeon-centric innovation, and commercial execution needed to grow the business and further impact patient lives and outcomes.”
The Viscogliosi Brothers have led multiple business transformations in spine, including Spine Solutions, Spine Next, Paradigm Spine, Simplify Medical, Centinel Spine, Companion Spine, Spine BioPharma and Woven Orthopedic Technologies.
Source: Stryker
Stryker entered into a definitive agreement to sell its U.S. spinal implant business to Viscogliosi Brothers and create VB Spine. The agreement includes a binding offer to acquire Stryker’s spinal implant business in France. We estimate Stryker's global spine implant business to be about $700 million of its $11.2 billion in 2024 revenue.
The...
Stryker entered into a definitive agreement to sell its U.S. spinal implant business to Viscogliosi Brothers and create VB Spine. The agreement includes a binding offer to acquire Stryker’s spinal implant business in France. We estimate Stryker’s global spine implant business to be about $700 million of its $11.2 billion in 2024 revenue.
The transaction is expected to close in the U.S. in 1H25. Stryker’s U.S. spinal implants business and VB Spine will continue to operate as separate entities and proceed with business as usual until the transaction closes.
After closing, VB Spine will become a strategic partner to Stryker with exclusive access to Mako Spine and Copilot for use with VB Spine’s implants in spine procedures.
The sale of Stryker’s spinal implant business in other international markets is anticipated, pending satisfaction of legal and regulatory requirements, including any required consultations.
While there was little warning or preamble to this move, it hardly qualifies as a surprise. After Stryker’s difficult integration of K2M, the company’s spine business has managed a CAGR of just 1.4% since 2019. Recent market consolidation made Stryker a distant third player with a spinal implant business that couldn’t match the innovation cadence of its competitors.
The divestiture makes sense for Stryker. It discovered, like Zimmer Biomet before it, the relative lack of synergy between spine and orthopedic franchises. Stryker can reallocate focus and resources into higher-growth areas.
The company retains its spinal enabling technology and says customers will see little difference compared to the current arrangement of Stryker capital reps and implant reps. Mako will remain exclusive to VB Spine for a time but could possibly become an open system in the future. It remains to be seen how well this model can work, given the apparent advantages of deep integration between implant and technology.
“We believe that the spinal implants business, with its comprehensive portfolio and strong sales channel, will thrive as an independent company,” said Kevin A. Lobo, Chair and Chief Executive Officer, Stryker. “With dedicated resources and a focused strategy, the business will be well positioned to succeed as part of Viscogliosi Brothers.”
“We have long admired Stryker for its comprehensive spine portfolio, incredible talent, and strong culture,” said Marc, John and Anthony Viscogliosi, Co-Founders of Viscogliosi Brothers, LLC. “We see a tremendous opportunity to provide the focus, surgeon-centric innovation, and commercial execution needed to grow the business and further impact patient lives and outcomes.”
The Viscogliosi Brothers have led multiple business transformations in spine, including Spine Solutions, Spine Next, Paradigm Spine, Simplify Medical, Centinel Spine, Companion Spine, Spine BioPharma and Woven Orthopedic Technologies.
Source: Stryker
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
