Stryker reported 1Q21 orthopedic revenue of USD $2,068.5 million, +15.3% vs. 1Q20. The company’s organic orthopedic revenue declined low single digits for the quarter, with international growth partially offsetting U.S. losses. Stryker’s trauma and extremities business, inclusive of Wright Medical, grew +2.6% on a comparable basis led by mid-single-digit shoulder revenue growth.
Company leadership said the integration of Wright Medical is proceeding much more quickly than K2M. To date, Stryker has established three distinct business units with dedicated commercial, R&D and selling originations: trauma, upper extremities and foot and ankle. While it digests the Wright Medical integration, Stryker remains active in tuck-in acquisitions. During the quarter, it acquired TMJ Concepts in what Stryker described as a minor deal for its CMF business.
The pandemic remains a significant obstacle for joint replacement sales, particularly in the United States. Stryker’s U.S. knee and hip sales both declined in the high single digits for the first quarter. Sales trends did improve through the end of the quarter and into April, with knee and hip sales growing in the mid-single digits compared to April 2019. Despite joint replacement’s challenges, Mako continued its dynamic growth. The company’s Orthopedic Other segment, where Mako revenue is reported, grew +49% in the first quarter, with international growth of +115%.
Company leadership sees the market returning to a more normalized state at the end of the second quarter, but declined to predict the specific timing of a backlog recovery. All told, however, Stryker expects total organic revenue growth in the range of +8% to +10% vs. 2019.
“Other competitive systems like VELYS or ROSA haven’t slowed us down at all. And if anything, what they’ve done is they’ve increased the validation that robotics are going to stay, and demand for Mako and our technology continues to be super strong as we saw by the results we posted. And then also, we believe we have the best solution. From a head-to-head comparison, it’s something that we look forward to with the technologies that are on the market today.” – 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
1Q21 | 1Q20 | $ Chg | % Chg | |
---|---|---|---|---|
Joint Replacement | $1,050.8 | $924.0 | $126.8 | 13.7% |
Knees | $502.4 | $508.7 | ($6.2) | (1.2%) |
Hips | $372.9 | $375.2 | ($2.3) | (0.6%) |
Extremities | $175.5 | $40.1 | $135.4 | 337.5% |
Spine | $265.2 | $248.5 | $16.7 | 6.7% |
Trauma | $462.2 | $356.4 | $105.9 | 29.7% |
Sports Medicine | $151.3 | $136.3 | $15.0 | 11% |
Orthobiologics | $66.1 | $58.1 | $8.0 | 13.8% |
Other (CMF) | $72.9 | $70.4 | $2.5 | 3.5% |
Total | $2,068.5 | $1,793.7 | $274.8 | 15.3% |
Geographic Sales
1Q21 | 1Q20 | $ Chg | % Chg | |
---|---|---|---|---|
US | $1,468.1 | $1,334.1 | $134.0 | 10% |
OUS | $600.4 | $459.6 | $140.8 | 30.6% |
EMEA | $279.3 | $218.8 | $60.4 | 27.6% |
Asia Pacific | $258.6 | $188.3 | $70.2 | 37.3% |
Rest of World | $62.6 | $52.5 | $10.2 | 19.4% |
Total | $2,068.5 | $1,793.7 | $274.8 | 15.3% |
Earnings
Amt | % of Sales | |
---|---|---|
Sales | $3,953.0 | |
Cost of Sales | $1,444.0 | 36.5% |
Selling and Admin | $1,575.0 | 39.8% |
R & D | $288.0 | 7.3% |
Other | $344.0 | 8.7% |
Net Earnings | $302.0 | 7.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Stryker reported 1Q21 orthopedic revenue of USD $2,068.5 million, +15.3% vs. 1Q20. The company’s organic orthopedic revenue declined low single digits for the quarter, with international growth partially offsetting U.S. losses. Stryker’s trauma and extremities business, inclusive of Wright Medical, grew +2.6% on a comparable basis led by...
Stryker reported 1Q21 orthopedic revenue of USD $2,068.5 million, +15.3% vs. 1Q20. The company’s organic orthopedic revenue declined low single digits for the quarter, with international growth partially offsetting U.S. losses. Stryker’s trauma and extremities business, inclusive of Wright Medical, grew +2.6% on a comparable basis led by mid-single-digit shoulder revenue growth.
Company leadership said the integration of Wright Medical is proceeding much more quickly than K2M. To date, Stryker has established three distinct business units with dedicated commercial, R&D and selling originations: trauma, upper extremities and foot and ankle. While it digests the Wright Medical integration, Stryker remains active in tuck-in acquisitions. During the quarter, it acquired TMJ Concepts in what Stryker described as a minor deal for its CMF business.
The pandemic remains a significant obstacle for joint replacement sales, particularly in the United States. Stryker’s U.S. knee and hip sales both declined in the high single digits for the first quarter. Sales trends did improve through the end of the quarter and into April, with knee and hip sales growing in the mid-single digits compared to April 2019. Despite joint replacement’s challenges, Mako continued its dynamic growth. The company’s Orthopedic Other segment, where Mako revenue is reported, grew +49% in the first quarter, with international growth of +115%.
Company leadership sees the market returning to a more normalized state at the end of the second quarter, but declined to predict the specific timing of a backlog recovery. All told, however, Stryker expects total organic revenue growth in the range of +8% to +10% vs. 2019.
“Other competitive systems like VELYS or ROSA haven’t slowed us down at all. And if anything, what they’ve done is they’ve increased the validation that robotics are going to stay, and demand for Mako and our technology continues to be super strong as we saw by the results we posted. And then also, we believe we have the best solution. From a head-to-head comparison, it’s something that we look forward to with the technologies that are on the market today.” – 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
1Q21 | 1Q20 | $ Chg | % Chg | |
---|---|---|---|---|
Joint Replacement | $1,050.8 | $924.0 | $126.8 | 13.7% |
Knees | $502.4 | $508.7 | ($6.2) | (1.2%) |
Hips | $372.9 | $375.2 | ($2.3) | (0.6%) |
Extremities | $175.5 | $40.1 | $135.4 | 337.5% |
Spine | $265.2 | $248.5 | $16.7 | 6.7% |
Trauma | $462.2 | $356.4 | $105.9 | 29.7% |
Sports Medicine | $151.3 | $136.3 | $15.0 | 11% |
Orthobiologics | $66.1 | $58.1 | $8.0 | 13.8% |
Other (CMF) | $72.9 | $70.4 | $2.5 | 3.5% |
Total | $2,068.5 | $1,793.7 | $274.8 | 15.3% |
Geographic Sales
1Q21 | 1Q20 | $ Chg | % Chg | |
---|---|---|---|---|
US | $1,468.1 | $1,334.1 | $134.0 | 10% |
OUS | $600.4 | $459.6 | $140.8 | 30.6% |
EMEA | $279.3 | $218.8 | $60.4 | 27.6% |
Asia Pacific | $258.6 | $188.3 | $70.2 | 37.3% |
Rest of World | $62.6 | $52.5 | $10.2 | 19.4% |
Total | $2,068.5 | $1,793.7 | $274.8 | 15.3% |
Earnings
Amt | % of Sales | |
---|---|---|
Sales | $3,953.0 | |
Cost of Sales | $1,444.0 | 36.5% |
Selling and Admin | $1,575.0 | 39.8% |
R & D | $288.0 | 7.3% |
Other | $344.0 | 8.7% |
Net Earnings | $302.0 | 7.6% |
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.