Stryker to Divest Spinal Implants Business, Names New CFO Amid Strategic Shifts

Stryker Corporation, a leading medical technology company, has announced significant strategic moves, including the divestiture of its spinal implants business and the appointment of a new Chief Financial Officer. These developments come as the company reports its financial results for the fourth quarter and full year of 2024, showcasing both growth and challenges in various segments.

Spinal Implants Divestiture and Strategic Refocus

Stryker has reached an agreement to sell its U.S. spinal implants business to Viscogliosi Brothers, a family investment firm, for an undisclosed amount. The newly formed company, VB Spine, will specialize in neuro-musculoskeletal products and has also received a binding offer to acquire Stryker's spinal products in France.

Kevin Lobo, Stryker's CEO, explained the rationale behind the divestiture, stating that the segment "has faced challenges in achieving our performance expectations." The spinal implants business generated $707 million in sales for Stryker in 2024, but the company reported goodwill and other impairments of $818 million related to this segment in the fourth quarter.

Despite the sale, Stryker remains committed to certain areas of spine technology. The company will retain its interventional spine products, including the Q Guidance System for surgical planning and navigation, and the Mako Spine robot. Stryker received FDA clearance for Mako Spine in August and plans a full U.S. commercial launch in the second half of 2025.

Leadership Changes and Financial Performance

In a significant leadership change, Stryker announced that CFO Glenn Boehnlein, a 22-year veteran of the company, will retire. Preston Wells, currently CFO of Stryker's orthopedics group, will assume the role of company CFO starting April 1, 2025. Wells brings extensive experience from his previous roles at Stryker, including vice president of investor relations and vice president of financial planning analysis.

Stryker's financial results for 2024 show mixed performance:

• Q4 revenue: $6.4 billion, a 10.7% increase year over year
• 2024 full-year revenue: $22.6 billion, a 10.2% increase year over year
• Q4 net earnings: $546 million, a 52.2% decrease year over year
• 2024 full-year net earnings: $2.99 billion, a 5.4% decrease year over year

Inari Medical Acquisition Update

Stryker provided an update on its planned $4.9 billion acquisition of Inari Medical, a company specializing in mechanical thrombectomy systems for treating vascular disease. The deal is expected to close in late February 2025, with Inari projected to contribute $590 million in constant currency sales for the ten months ending December 2025.

Andy Pierce, group president of medical-surgical and neurotechnology at Stryker, highlighted the strategic importance of this acquisition. It positions Stryker as a leader in the rapidly growing market for mechanical thrombectomy treatment of venous thromboembolism (VTE), a condition involving blood clot formation in veins. Stryker estimates the global total addressable market for mechanical thrombectomy in VTE at $15 billion, with the U.S. accounting for nearly $6 billion of that opportunity.

The acquisition is expected to accelerate Inari's international expansion, building on its current presence in over 30 markets worldwide.