Stryker Corporation has announced its acquisition of Molli Surgical, a company known for its innovative miniature tissue marker used in breast cancer surgery. This strategic move is set to bolster Stryker’s offerings in breast cancer care, particularly with its advanced wire-free localization system.
Molli Surgical’s flagship product, a small, gold-plated, magnetic implant designed for precise tumor targeting, is touted as the smallest of its kind on the market at just 3.2 millimeters. The implant is designed to be detectable through dense breast tissue and hematomas. Its magnetic field is detected using a handheld wand, providing surgeons with audiovisual feedback and three-dimensional guidance during breast-conserving surgeries.
Stryker’s acquisition of Molli Surgical is expected to complement its existing breast cancer surgery portfolio, which includes fluorescence imaging technologies for lymphatic system mapping and lighted retractor instruments. The financial details of the transaction have not been disclosed.
“This acquisition is a classic tuck-in for Stryker,” commented CEO Kevin Lobo during the company’s second-quarter earnings call. “While the product isn’t a major revenue driver at present, its elegance and ease of use make it a valuable addition. We’ve been closely watching developments in this space, and Molli’s product has stood out.”
The acquisition follows Stryker’s recent purchase of Artelon, a company specializing in soft-tissue fixation solutions for ligament and tendon reconstruction. This deal aligns with Stryker’s strategy to enhance its product portfolio and maintain strong market momentum.
Lobo expressed optimism about the company’s deal pipeline, anticipating continued acquisition activity in the latter half of the year. “Our pipeline remains robust, with significant capital available due to strong demand in endoscopy and medical sales,” he noted. “While most acquisitions are smaller, we will stay active in this space.”
For the second quarter, Stryker reported a 9.0% increase in organic net sales, reaching $5.42 billion, accounting for currency fluctuations and acquisition impacts. Net earnings rose 11.8% to $825 million, prompting the company to adjust its financial outlook for 2024, now predicting growth between 9.0% and 10.0%, an increase from the previous range of 8.5% to 9.5%.
Lobo highlighted international markets as a key growth area, noting significant opportunities in countries like Japan, emerging markets, India, and Europe. He cited strong demand for Stryker’s Mako surgical robots as a major driver of international growth.
In addition to the Molli Surgical acquisition, Stryker recently received FDA clearance for its Q Guidance System, a spine surgery guidance tool designed to enhance precision during bone resection procedures. The system provides auditory and sensory alerts to prevent overshooting during pedicle screw placements and can automatically stop the driver when the desired depth is reached.
Robbie Robinson, president of Stryker’s Spine division, emphasized that the Q Guidance System represents just the beginning of their development pipeline. “We anticipate initiating clinical cases in September, with a full commercial rollout planned for later this fall,” he said. The company is also preparing to launch Mako Spine robotic arm attachments and the Mako Shoulder by the end of the year.
Stryker’s recent acquisitions and product innovations underscore its commitment to advancing surgical technology and expanding its market presence across multiple medical specialties.
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