SYK Stock May Gain From Completion of Vertos Medical Acquisition
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Stryker Corporation SYK announced the completion of the acquisition of Vertos Medical, a privately held company providing a minimally invasive solution for treating chronic lower back pain caused by lumbar spinal stenosis.
Through the acquisition, Stryker can access more ambulatory surgery facilities and diversify its offerings for minimally invasive pain management.
Trend of SYK Stock Following the News
Following the announcement, shares of the company moved 1.7% south and closed at $357.27 on Tuesday.
Stryker, as a leading player in the global orthopedic market, is gaining organically through research and development leading to product launches. The company also follows an acquisition-driven strategy to broaden its product portfolio. Accordingly, we anticipate the stock to gain investors’ optimism around this latest acquisition of Vertos Medical.
Meanwhile, SYK currently has a market capitalization of $139.03 billion. It has an earnings yield of 3.3%, much higher than the industry’s yield of 0.7%. In the last reported quarter, SYK delivered an earnings surprise of 0.72%.
More on the SYK’s Acquisition News
Lumbar spinal stenosis is the most common cause of pain and disability, affecting a large number of people globally. Nowadays, patients expect to be better quickly and get back to their normal lives sooner. Patients are, hence, seeking the least invasive treatment options. The minimally invasive therapy from Vertos Medical offers pain relief and may increase mobility without requiring major surgery.
The addition of Vertos Medical’s differentiated portfolio will strengthen Stryker’s impact in interventional solutions to address chronic pain.
More on Stryker’s Past Acquisitions
SYK has been following an acquisition-driven strategy to boost its growth profile.
Recently, the company inked a deal to acquire care.ai, which is likely to add artificial intelligence-assisted virtual care workflows, smart room technology and ambient intelligence solutions.
In August, Stryker announced the completion of the acquisition of MOLLI Surgical Inc., a privately held company specializing in the development of wire-free soft tissue localization technology for breast-conserving surgery. As a result of the acquisition, MOLLI’s portfolio is likely to boost SYK’s commitment to advancing surgical solutions in breast cancer care.
In July, Stryker completed the previously announced acquisition of Artelon, a privately held company specializing in innovative soft tissue fixation products for foot and ankle and sports medicine procedures. The acquisition highlighted SYK's commitment to providing distinctive ligament and tendon reconstruction solutions, and strengthening the company's product line in the soft tissue fixation sector.
Per management, these buyouts represent Stryker’s focus on its strategy of boosting category leadership and market-leading growth.
