Stryker Posts 1Q18 Revenue

by Julie A. Vetalice on May 03, 2018

ORTHOWORLD estimates Stryker’s 1Q18 orthopaedic revenue at US $1,724.9MM, +7.0% from 1Q17. Strongest performance came from Trauma, Extremities and Knee products. Estimated segment sales and growth follow.

	1Q18	1Q17	$ Change	% Change
Joint Reconstruction	$923.1	$868.5	$54.6	6.3%
Knee	$523.4	$486.2	$37.2	7.7%
Hip	$368.1	$353.5	$14.5	4.1%
Extremities	$31.6	$28.8	$2.9	10.0%
Trauma	$365.2	$327.7	$37.5	11.4%
Arthroscopy/Soft Tissue	$128.2	$118.0	$10.3	8.7%
Spine	$176.7	$173.4	$3.3	1.9%
Orthobiologics	$56.5	$53.0	$3.5	6.6%
Other*	$75.1	$71.7	$3.4	4.7%
Total	$1,724.9	$1,612.3	$112.6	7.0%

*Includes CMF and Performance Solutions.

Revenue growth excelled in trauma, extremities recon and knee, with another strong quarter of significant increases in new Mako robot installations.

Mako Update

Installed 28 robots globally, with 24 in the U.S.; compared to 1Q17: 18 global, 11 U.S.
Of 1Q18 installations, >50% were in competitive accounts where SYK either had no knee market share, or it was below SYK’s average market share
70% of robots in the field upgraded for total knee by end of 1Q18; on track to have majority of U.S. robots upgraded by 3Q18
160 surgeons trained on total knee (total now 1,000 since launch)
U.S. Mako TKR procedures 8,200 in 1Q18, up from 1,100 in 1Q17 and 7,150 in 4Q17
The Mako robot has been installed in ~400 U.S. hospitals. Of ~4,000 U.S. orthopaedic hospitals, SYK estimates ~50% are candidates for at least one robot—which means a long runway for continued adoption.

Other growth drivers included 3D-printed products for foot/ankle, shoulder recon, strength in Power Tools from System 8 and Micro Power sales and strong demand for 1588 video and sports medicine products (which we categorize under Arthroscopy/Soft Tissue Repair). Leadership noted that development is underway for patient-specific guides to support ankle replacement.

Softness remains in the U.S. spine market; core spine was affected by low-double-digit price declines. However, 3D-printed Tritanium interbody implants were not affected by these headwinds.

Sources: Stryker Corporation; ORTHOWORLD estimates

Q18
Q17
$ Change
% Change

...

	1Q18	1Q17	$ Change	% Change
Joint Reconstruction	$923.1	$868.5	$54.6	6.3%
Knee	$523.4	$486.2	$37.2	7.7%
Hip	$368.1	$353.5	$14.5	4.1%
Extremities	$31.6	$28.8	$2.9	10.0%
Trauma	$365.2	$327.7	$37.5	11.4%
Arthroscopy/Soft Tissue	$128.2	$118.0	$10.3	8.7%
Spine	$176.7	$173.4	$3.3	1.9%
Orthobiologics	$56.5	$53.0	$3.5	6.6%
Other*	$75.1	$71.7	$3.4	4.7%
Total	$1,724.9	$1,612.3	$112.6	7.0%

*Includes CMF and Performance Solutions.

Revenue growth excelled in trauma, extremities recon and knee, with another strong quarter of significant increases in new Mako robot installations.

Mako Update

Installed 28 robots globally, with 24 in the U.S.; compared to 1Q17: 18 global, 11 U.S.
Of 1Q18 installations, >50% were in competitive accounts where SYK either had no knee market share, or it was below SYK’s average market share
70% of robots in the field upgraded for total knee by end of 1Q18; on track to have majority of U.S. robots upgraded by 3Q18
160 surgeons trained on total knee (total now 1,000 since launch)
U.S. Mako TKR procedures 8,200 in 1Q18, up from 1,100 in 1Q17 and 7,150 in 4Q17
The Mako robot has been installed in ~400 U.S. hospitals. Of ~4,000 U.S. orthopaedic hospitals, SYK estimates ~50% are candidates for at least one robot—which means a long runway for continued adoption.

Softness remains in the U.S. spine market; core spine was affected by low-double-digit price declines. However, 3D-printed Tritanium interbody implants were not affected by these headwinds.

Sources: Stryker Corporation; ORTHOWORLD estimates