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Stryker reported 3Q21 orthopedic revenue of $2,158.8 million, +11% vs. 3Q20. The company’s orthopedic business grew +2% on an organic basis, with U.S. growth lower at +1% reflecting the slowdown in elective procedures due to the Delta variant.
The third quarter brought significant spikes in COVID infections that required hospital bed utilization, causing widespread deferrals in elective procedures. As they have throughout the pandemic, the knee, hip and spine segments suffered the greatest impacts. Procedure deferrals were more pronounced in the United States than international markets, particularly in the major southern markets like Florida and Texas.
Mako sales remained a bright spot for Stryker in the third quarter. Company VP of Investor Relations Preston Wells said, “Hospitals, even though they’re struggling through the pandemic, their liquidity is very good, partially due to the CARES funding that was put in place. They’re in a strong position and they are getting ready for the future. When knee and hip procedures come back, we’re in a terrific position to capitalize on those because the Mako systems we’re putting in, roughly half of those are going into competitive accounts. When volumes come back, we will be able to really take advantage of that, not just in our own Stryker-friendly accounts, but even in competitive accounts.”
October brought modest improvement in volume, but Stryker expects a muted recovery in the fourth quarter with continued COVID volatility exacerbated by hospital staffing shortages. However, the company believes volumes will normalize by the end of the year. The growing backlog of deferred procedures will be recovered gradually with no one quarter bringing outsized growth, according to Stryker leadership.
The company’s integration of Wright Medical continues to progress with the completion of salesforce realignment in the U.S. Internationally, Stryker has had a more challenging time with salesforce and indirect channel realignment. On a combined basis, Stryker and Wright Medical trauma sales are up in the high single digits in the U.S. through three quarters, with international declining in the low single digits. For the full year, the company expects mid-single digit growth from the combined business.
“We’re continuing to see a shift to the ASC. The challenge we have right now is the pace. Capacity takes time to build, and every hospital system is in the process of trying to increase its capacity. We feel very good about our position in the ASC. It’s way ahead of our expectations, frankly, going into the pandemic. We’re seeing strength, but the challenge on the hip and knee side of it is just time to build capacity. It’s growing, but it’s going to just take time before it becomes a really meaningful part of our business.” — 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
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,105.0 | $970.1 | $134.9 | 13.9% |
| Knees | $533.0 | $524.0 | $9.0 | 1.7% |
| Hips | $394.9 | $401.4 | ($6.6) | (1.6%) |
| Extremities | $177.1 | $44.7 | $132.4 | 296.6% |
| Spine | $269.0 | $288.1 | ($19.1) | (6.6%) |
| Trauma | $461.9 | $386.3 | $75.5 | 19.6% |
| Sports Medicine | $175.1 | $158.1 | $17.0 | 10.7% |
| Orthobiologics | $69.2 | $65.0 | $4.2 | 6.5% |
| Other (CMF) | $78.6 | $76.9 | $1.7 | 2.2% |
| Total | $2,158.8 | $1,944.5 | $214.2 | 11% |
| 9m21 | 9m20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3,331.8 | $2,501.6 | $830.2 | 33.2% |
| Knees | $1,605.1 | $1,343.5 | $261.6 | 19.5% |
| Hips | $1,188.6 | $1,045.3 | $143.3 | 13.7% |
| Extremities | $538.1 | $112.7 | $425.4 | 377.3% |
| Spine | $827.1 | $706.0 | $121.2 | 17.2% |
| Trauma | $1,411.0 | $1,042.4 | $368.6 | 35.4% |
| Sports Medicine | $486.6 | $389.1 | $97.5 | 25% |
| Orthobiologics | $205.7 | $168.5 | $37.2 | 22.1% |
| Other (CMF) | $228.6 | $207.5 | $21.1 | 10.2% |
| Total | $6,490.9 | $5,015.1 | $1,475.7 | 29.4% |
Geographic Sales
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,583.0 | $1,451.0 | $132.1 | 9.1% |
| OUS | $575.7 | $493.6 | $82.2 | 16.6% |
| EMEA | $291.4 | $237.2 | $54.2 | 22.8% |
| Asia Pacific | $226.7 | $204.2 | $22.5 | 11% |
| Rest of World | $57.6 | $52.2 | $5.5 | 10.5% |
| Total | $2,158.8 | $1,944.5 | $214.2 | 11% |
| 9m21 | 9m20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $4,704.2 | $3,718.7 | $985.5 | 26.5% |
| OUS | $1,786.6 | $1,296.4 | $490.2 | 37.8% |
| EMEA | $864.9 | $609.3 | $255.7 | 42% |
| Asia Pacific | $756.9 | $545.7 | $211.1 | 38.7% |
| Rest of World | $164.8 | $141.4 | $23.4 | 16.6% |
| Total | $6,490.9 | $5,015.1 | $1,475.7 | 29.4% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,160.0 | |
| Cost of Sales | $1,518.0 | 36.5% |
| Selling and Admin | $1,602.0 | 38.5% |
| R & D | $306.0 | 7.4% |
| Other | $296.0 | 7.1% |
| Net Earnings | $438.0 | 10.5% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Stryker reported 3Q21 orthopedic revenue of $2,158.8 million, +11% vs. 3Q20. The company's orthopedic business grew +2% on an organic basis, with U.S. growth lower at +1% reflecting the slowdown in elective procedures due to the Delta variant.
The third quarter brought significant spikes in COVID infections that required hospital bed...
Stryker reported 3Q21 orthopedic revenue of $2,158.8 million, +11% vs. 3Q20. The company’s orthopedic business grew +2% on an organic basis, with U.S. growth lower at +1% reflecting the slowdown in elective procedures due to the Delta variant.
The third quarter brought significant spikes in COVID infections that required hospital bed utilization, causing widespread deferrals in elective procedures. As they have throughout the pandemic, the knee, hip and spine segments suffered the greatest impacts. Procedure deferrals were more pronounced in the United States than international markets, particularly in the major southern markets like Florida and Texas.
Mako sales remained a bright spot for Stryker in the third quarter. Company VP of Investor Relations Preston Wells said, “Hospitals, even though they’re struggling through the pandemic, their liquidity is very good, partially due to the CARES funding that was put in place. They’re in a strong position and they are getting ready for the future. When knee and hip procedures come back, we’re in a terrific position to capitalize on those because the Mako systems we’re putting in, roughly half of those are going into competitive accounts. When volumes come back, we will be able to really take advantage of that, not just in our own Stryker-friendly accounts, but even in competitive accounts.”
October brought modest improvement in volume, but Stryker expects a muted recovery in the fourth quarter with continued COVID volatility exacerbated by hospital staffing shortages. However, the company believes volumes will normalize by the end of the year. The growing backlog of deferred procedures will be recovered gradually with no one quarter bringing outsized growth, according to Stryker leadership.
The company’s integration of Wright Medical continues to progress with the completion of salesforce realignment in the U.S. Internationally, Stryker has had a more challenging time with salesforce and indirect channel realignment. On a combined basis, Stryker and Wright Medical trauma sales are up in the high single digits in the U.S. through three quarters, with international declining in the low single digits. For the full year, the company expects mid-single digit growth from the combined business.
“We’re continuing to see a shift to the ASC. The challenge we have right now is the pace. Capacity takes time to build, and every hospital system is in the process of trying to increase its capacity. We feel very good about our position in the ASC. It’s way ahead of our expectations, frankly, going into the pandemic. We’re seeing strength, but the challenge on the hip and knee side of it is just time to build capacity. It’s growing, but it’s going to just take time before it becomes a really meaningful part of our business.” — 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
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,105.0 | $970.1 | $134.9 | 13.9% |
| Knees | $533.0 | $524.0 | $9.0 | 1.7% |
| Hips | $394.9 | $401.4 | ($6.6) | (1.6%) |
| Extremities | $177.1 | $44.7 | $132.4 | 296.6% |
| Spine | $269.0 | $288.1 | ($19.1) | (6.6%) |
| Trauma | $461.9 | $386.3 | $75.5 | 19.6% |
| Sports Medicine | $175.1 | $158.1 | $17.0 | 10.7% |
| Orthobiologics | $69.2 | $65.0 | $4.2 | 6.5% |
| Other (CMF) | $78.6 | $76.9 | $1.7 | 2.2% |
| Total | $2,158.8 | $1,944.5 | $214.2 | 11% |
| 9m21 | 9m20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $3,331.8 | $2,501.6 | $830.2 | 33.2% |
| Knees | $1,605.1 | $1,343.5 | $261.6 | 19.5% |
| Hips | $1,188.6 | $1,045.3 | $143.3 | 13.7% |
| Extremities | $538.1 | $112.7 | $425.4 | 377.3% |
| Spine | $827.1 | $706.0 | $121.2 | 17.2% |
| Trauma | $1,411.0 | $1,042.4 | $368.6 | 35.4% |
| Sports Medicine | $486.6 | $389.1 | $97.5 | 25% |
| Orthobiologics | $205.7 | $168.5 | $37.2 | 22.1% |
| Other (CMF) | $228.6 | $207.5 | $21.1 | 10.2% |
| Total | $6,490.9 | $5,015.1 | $1,475.7 | 29.4% |
Geographic Sales
| 3Q21 | 3Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,583.0 | $1,451.0 | $132.1 | 9.1% |
| OUS | $575.7 | $493.6 | $82.2 | 16.6% |
| EMEA | $291.4 | $237.2 | $54.2 | 22.8% |
| Asia Pacific | $226.7 | $204.2 | $22.5 | 11% |
| Rest of World | $57.6 | $52.2 | $5.5 | 10.5% |
| Total | $2,158.8 | $1,944.5 | $214.2 | 11% |
| 9m21 | 9m20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $4,704.2 | $3,718.7 | $985.5 | 26.5% |
| OUS | $1,786.6 | $1,296.4 | $490.2 | 37.8% |
| EMEA | $864.9 | $609.3 | $255.7 | 42% |
| Asia Pacific | $756.9 | $545.7 | $211.1 | 38.7% |
| Rest of World | $164.8 | $141.4 | $23.4 | 16.6% |
| Total | $6,490.9 | $5,015.1 | $1,475.7 | 29.4% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $4,160.0 | |
| Cost of Sales | $1,518.0 | 36.5% |
| Selling and Admin | $1,602.0 | 38.5% |
| R & D | $306.0 | 7.4% |
| Other | $296.0 | 7.1% |
| Net Earnings | $438.0 | 10.5% |
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.
