Stryker Backs Full-Year Outlook, Touts Broadened Lineup
19 5월 2011 - 1:00AM
Dow Jones News
Stryker Corp. (SYK) on Wednesday stuck to its full-year
financial targets, despite continued pressure in an orthopedics
market hurt by high unemployment, while talking up the benefits of
its increasingly diverse product mix.
The Kalamazoo, Mich., company announced plans Monday to acquire
Orthovita Inc. (VITA), a smaller maker of orthobiologic and
biosurgery products, for about $304 million in cash. The deal also
includes about $12 million in debt. This follows Stryker's $1.5
billion purchase in January of a neurovascular-device business from
Boston Scientific Corp. (BSX).
These deals bolster a Stryker product lineup that includes big
businesses for replacement orthopedic joints and hospital products
like scopes, beds and stretchers. The company noted that it spent
$2.4 billion on deals between 2008 and 2010, up from $400 million
in the 2004 to 2007 period.
Stryker's portfolio means "no one franchise, no one product
approval, makes an enormous difference positive or negative,"
Stephen MacMillan, Stryker's chairman and chief executive, said
during an analyst meeting broadcast over the internet.
That diversity proved helpful during the first quarter, when the
market for replacement joints remained under pressure from economic
factors like high unemployment, which has caused patients to defer
replacement knee surgery and other procedures. Stryker managed to
offset flat hip-and-knee sales with strong growth in its hospital
supplies business, however.
MacMillan said replacement joints and spinal products have been
hit by an "overcorrection" as U.S. consumers get used to paying
more for health care out of pocket, but also talked about the
benefit of new products coming through Stryker's pipeline. Pressure
on product prices is a constant issue in the medical-device sector,
as hospitals work to cut costs, but MacMillan said new offerings
still help.
"We still believe there is an opportunity to get premium pricing
for innovative products," he said.
The company on Wednesday backed its full-year guidance, first
given in January, for 11% to 13% sales growth excluding the impact
of currency rates. Stryker also continues to expect adjusted
per-share earnings of $3.65 to $3.73.
Stryker shares recently traded up 19 cents to $63.99 and have
risen 19% so far this year.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728;
jon.kamp@dowjones.com
Orthovita, Inc. (MM) (NASDAQ:VITA)
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Orthovita, Inc. (MM) (NASDAQ:VITA)
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