Will Stryker EVER be bought?

We see it every week in this dog eat dog industry. Stryker is an extremely strong company with great products, billions in sales, and a seemingly growing pipeline. The device world is all about domination (Medtronic buying Covidien, Zimmer buying Biomet, etc.) What are your thoughts on the J&J's of the world eventually swallowing us up too?

 

Whoever purchases Stryker will need to do a bulk order of DriFit Polo shirts, extra tight.

 

Funny but I just heard the same thing at a meeting.

 

No. It wouldn't make any sense. There are only a couple of companies who can afford it and the logistics of integrating the company would be impossible. There is a certain size at which companies can function well and after that it's a losing proposition.

Also what does Stryker really have that the behemoths want and or would fill the gap in their portfolio? They would end up losing many of their most profitable lines.

The deals you mentioned still have to work themselves out and see if they were really worth doing.

 

It is always a possibility. The moron that replied that it doesn't make sense is not very educated. Sometimes it is not always about the product line.

 

Stryker is incorporated in Michigan, which has very strong "poison pill" and takeover "laws".

 

Great post and worth the discussion. Stryker has recently acquired Pivot, Mako, and Surgicount. So far Stryker is the one doing the buying and only broadening their product portfolio. In my opinion, not any time soon. Stryker is an arrogant organization and out for blood to win this Med Device war. Only time will tell

 

Because it doesn't make any sense.

And just what would the big boys gain from acquiring Stryker? Why don't you enlighten us? The only possible benefit would be to put them out of business but it would cost them a fortune to do so.

Of course all the Stryker boys talk it up and would like it to happen so they can sit back and cash out. But whoever bought it would have to sift through and deal with the mess that results from such an acquisition.

 

Aren't companies incentivized to increase profits?

If someone were to buy Stryker, there would be 2 obvious options, no?

1. Integrate to realize additional profits- for eg. the acquirer has better COGS and integration would lead to higher GPs

2. Run Stryker as a stand alone for revenue $s - would most likely lead to butting of heads at a higher level (immediately or in the future) and ultimately detrimental to one franchise

 

That's all correct in theory but in practice it's much harder to accomplish because of practical considerations many teams don't take into consideration. There are numerous cases of failed acquisitions.

Can Stryker be bought? Sure anything is possible but how many entities out there have the cash to do so and the experience to run it properly? It easy to buy minor entities and integrate them if but a company like Stryker will be much harder to do so particularly if the acquirer has numerous competing product lines.

 

Truthfully, unless GE or Johnson and Johnson steps up to the plate, this would be unlikely. Reputation and products are too good....atleast right now. Who knows though, maybe Medtronic will bounce back after the Covidien acquisition and put an offer in a few years down the road. Better question here is who is Stryker buying next.

 

Pieces of Smith and nephew?

 

All major med tech companies are way overvalued. The US is bankrupt and the big companies have become rich because of government incompetence, inefficiency and corruption. We are just at the beginning the death spiral we will see as a country. The ridiculous margins will come to an end. The current consolidation is just the beginning of the death cycle.

The consolidation of the healthcare industry will be reminiscent of the consolidation of American car manufacturers from the 1940's onward only it will happen much quicker. Innovation is completely dead which invites generics and foreign competition.

Stryker may get purchased in some phase of the death cycle but ultimately the industry as it is today is going to get crushed including Stryker. Working for these companies or trading in their stocks is risky like building on a fault line. Sooner or later you will regret either or both.

 

Dead on! lol post of the YR on CP....except they woud be shmedium

 

Walk the floor at AAOS. No name companies and white box options abound. The focus today is strictly on price. Foreign made products are already on our shores. Open your eyes.

 

Really ? Nothing new about ex US made products shown at AAOS, however they usually carry a "not approved by FDA tag". Tell me about something clinically relevant , that is made offshore and is a threat to the American companies.....have you ever wondered why Stelkast has never made a statement ? Your comments are not from someone with decades of Orthopaedic knowledge and experience.

 

You fucking idiot. There are plenty of products already produced offshore and sold in the US. You might want to check "country of origin" on the labels of some of the shit in your own bag. Stryker sources many things from OUS (outside US for the moron) as do all the major players. Learn how to read and you will instantly appear smarter.

 

Stryker "sources" devices from their Stryker facilities globally. (As do all the majors) One of their run ins with the FDA a few years ago was due to 3rd party manufacturers who did not have good manufacturing processes.
As asked, tell me about an Orthopaedic device that is clinically relevant, made offshore (perceived to be cost effective) and threatening to DePuy, Stryker, Zimmer, S&N, Biomet (at the moment) and even Microport in the US??

 

It funny. People used to lampoon Japanese quality and now they lead every auto industry survey on quality, reliability and owner satisfaction. Be careful not to underestimate. Innovation is dead making it much easier for the low budget off-shore counterfeiters to catch up. It's inevitable.