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Stryker boosts bone implants with $4 billion Wright Medical buyout

Saumya Joseph / Nov. 4, 2019

(Reuters) – Medical device maker Stryker Corp (SYK.N) said on Monday it would buy smaller rival Wright Medical Group (WMGI.O) for about $4 billion in cash, to gain access to the fast-growing upper-body joint implants business.

Wright Medical, which recorded sales of $836 million last year, is among the top makers of implants to treat upper-body joint injuries such as in shoulder or wrist, as well as lower body including in foot and ankle.

Wells Fargo analyst Larry Biegelsen said the deal would give Stryker a leading position in the shoulder market, which has been a major gap in the device maker’s orthopedic portfolio.

“Stryker will meaningfully bolster its ability to compete and innovate in the nearly $2 billion global shoulder market,” Chief Executive Officer Kevin Lobo said in a conference call with analysts.

Stryker, however, may have to make some divestments in its ankle implant portfolio to avoid antitrust issues as Wright Medical has a near 70% share of the total ankle replacement market, analyst Biegelsen said.

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Drue De Angelis

Drue is Managing Partner for The De Angelis Group, Executive Search firm exclusively for the Ortho & Spine industry.

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