2016 RANK: 10
R&D Spend: $715,000,000
Fiscal year ending: Dec. 31, 2016
Kevin Lobo, chairman & CEO; Michael Hutchinson, general counsel; Yin Becker VP, communications, public affairs & strategic marketing; Bijoy Sagar, VP, CIO; Katherine Owen, VP, strategy & IR; Lonny Carpenter, president, global quality & business operations; Kathryn Fink, VP, HR; David Floyd, president, orthopedics; Timothy Scannell, president, medsurg & neurotechnology; William Jellison, VP, CFO
After a year filled with acquisitions, Stryker was relatively calm on the M&A trail in 2016 – apart from a $700 million deal for fluorescence imaging technology developer Novadaq and the buyout of substance disposal maker Cactus.
The past year was still a busy one for the company, which offers an array of products across orthopedics, general medical and surgical use, spinal and neurotech fields.
Business for Stryker has been brisk, and while it has been engaged on a number of legal fronts, including hip implant suits and its own levied employee poaching suits, it has avoided any major pitfalls so far.
In March, Stryker launched the robotic-arm assisted total knee arthroplasty application for its Mako system, touting it as the first and only robotic tech for total knee, hip and partial knee replacements.
The launch marked a major milestone for the company, which closed its $1.7 billion acquisition of Mako Surgical in 2013 but was met with skepticism from analysts on Wall Street, who questioned the potential uptake for the device.
On the vascular front, the company celebrated an unexpected victory, putting an early stop to enrollment in a clinical trial of its Trevo anti-stroke device after a review board decided that the trial had a high probability of success. The device, designed to remove blood clots that cause ischemic stroke, came with the company’s $135 million acquisition of Concentric Medical in 2011.
In February, Stryker inked a deal with the U.S. Defense Dept., netting a $486 million fixed-price contract to supply orthopedic products to the military and other federal agencies.
In a boost to its production capabilities, Stryker announced a deal with GE Healthcare’s 3D printing arm, GE Additive, looking to build out its own additive design and manufacturing facilities. Through the deal, the company looked to acquire machines, materials and services, adding to the 3D printing machines it acquired from Arcam and Concept Laser.
Internally, the company opened a new customer experience center in San Jose, Calif., featuring what it calls the “Operating Room of the Future.” The display includes integration of Microsoft’s altered-reality HoloLens holographic computer system, and gives a glance into how the company’s devices integrate to improve efficiency and safety.
Stryker also won a tax break in Portage, Mich., where it plans to begin construction on a new research and development facility estimated to cost as much as $154 million, slated to be completed by 2019.