Stryker sells US spinal implants business to VB Spine

PORTAGE, Michigan - Stryker Corporation (NYSE: SYK), a $142.65 billion medical technology leader with "GREAT" financial health according to InvestingPro, has officially divested its U.S. spinal implants division to Viscogliosi Brothers, LLC, establishing the new entity VB Spine, LLC. The transaction, finalized today, is part of Stryker’s strategy to refine its focus and enhance investment in innovation and long-term growth areas, building on its impressive 10.23% revenue growth over the last twelve months.

Kevin Lobo, Stryker’s Chair and CEO, expressed confidence in the move, stating, "The sale of our spinal implants business enhances our strategic focus, positioning us to meet evolving customer needs and invest where we see the greatest opportunity for innovation and long-term growth." He also acknowledged the contributions of the Spine team members and their promising future under the new ownership. The company’s strong track record includes maintaining dividend payments for 35 consecutive years, with a current dividend yield of 0.9%.

VB Spine will gain exclusive rights to utilize Stryker’s Mako Spine and Copilot technology in conjunction with its spinal implants for surgical procedures. The agreement also outlines that certain international markets will transition to VB Spine ownership upon fulfilling legal and regulatory obligations, as well as necessary employee consultations.

Stryker, recognized as a global leader in medical technologies, remains dedicated to the spine sector through its Interventional Spine, Neurotechnology, and Enabling Technologies divisions, as well as through a strategic partnership with VB Spine.

The company continues to serve the medical field with a wide array of products and services across MedSurg, Neurotechnology, and Orthopaedics, impacting over 150 million patients annually. This divestiture is seen as a step to sharpen Stryker’s focus in areas where it can most effectively improve healthcare outcomes. Based on InvestingPro analysis, Stryker currently appears overvalued relative to its Fair Value, though it maintains strong fundamentals with a 64.37% gross profit margin. For detailed insights and 13 additional ProTips about Stryker’s performance and outlook, investors can access the comprehensive Pro Research Report available on InvestingPro.

The financial terms of the sale have not been publicly disclosed. This move is part of Stryker’s ongoing efforts to optimize its portfolio and concentrate on key growth areas. The information regarding this sale is based on a press release statement from Stryker.

In other recent news, Stryker Corporation has completed the acquisition of Inari Medical, which is expected to slightly dilute its operating margin and earnings per share for 2025. Despite this, Needham analysts have maintained a Buy rating with a $442 price target, citing the acquisition’s potential to enhance Stryker’s revenue streams. RBC Capital Markets also reaffirmed an Outperform rating with a $435 target, highlighting Stryker’s resilient performance and optimistic outlook shared by its executives. The company has seen strong procedure volumes and expects continued growth, with no signs of a slowdown in capital spending. Piper Sandler maintained an Overweight rating with a $420 target, projecting strong growth rates for Stryker due to increased procedure volumes and market share gains in specific sectors. Additionally, Stryker has nominated Emmanuel "Manny" Maceda to its board of directors, bringing extensive experience from his tenure at Bain & Company. Furthermore, Stryker announced the release of its new Steri-Shield 8 personal protection system, designed with input from healthcare professionals to enhance safety and comfort. These developments reflect Stryker’s ongoing strategic initiatives and commitment to innovation in the medical technology industry.

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