03 May 2020
Posted in Medical Devices
Stryker’s US orthopedics and spines sales take big hit but will see a turnaround as pandemic recedes
Following the announcement that Stryker’s US orthopedics and spine sales were down approximately 65% in April 2020;
Aliyah Farouk, Medical Device Analyst at GlobalData, a leading data and analytics company, offers her view:
“With all elective procedures practically halted in the US, it is no surprise that Stryker’s orthopedics and spine sales were drastically affected in just one month. Many orthopedic implants are supplied on a customized-fit basis, therefore, there has been a substantial reduction in the production of these devices. However, GlobalData expects that Stryker will see a turnaround in sales in the second half of the year as the pandemic recedes and elective procedures are slowly reintroduced. More procedures are also expected to take place in ambulatory and outpatient centers in order to reduce hospital bed occupancy rates. As a result, Stryker should recover, making up for losses felt in the first half of the year.
“Styker’s trauma and extremities division also exhibited a drop in revenue, reflecting a reduction in road traffic accidents as a result of lockdown. GlobalData expects this business division will also improve as at home injuries increase and lockdown measures are eased.
“Overall, performing orthopedic procedures has become a challenge with the lack of resources as COVID-19 treatment is prioritized. This has translated to revenue loss for Stryker but GlobalData expects other major players in the orthopedics market such as Zimmer Biomet and DePuy Synthes will also see their orthopedics business impacted.”