Back to top

Image: Bigstock

Stryker-IUIH Medicity Program to Deliver Services in India

Read MoreHide Full Article

Headquartered in Kalamazoo, MI, Stryker Corporation (SYK - Free Report) , a medical technology company, recently tied up with Indo UK Institute of Health’s (“IUIH”) Medicity Program. Notably, this is a 20-year partnership that aims to offer primary joint replacements (orthopedic areas of hip, knee, and trauma products) and healthcare services in India at low costs.

Meanwhile, Stryker will sponsor a post-graduate training and education center in the IUIH campus. The institute is also expected to leverage on Stryker`s longstanding Global Technology Center in India.

The partnership would fortify Stryker’s position in India and provide a predictable orthopedic expenditure schedule, improved cash flow and optimized use of technology resources in the healthcare industry.

The joint replacement market in India comprises Total Hip Replacement (THR), Total Knee Replacement (TKR), partial knee replacement, partial hip replacement, shoulder joint replacement and other small joint replacement surgeries, of which, THR and TKR account for maximum sales. Notably, the market grew in double digits between 2007 and 2014, which holds considerable promise for the company.

After posting a solid third quarter of 2016, squarely beating the Zacks Consensus Estimate, Stryker has been gaining prominence in the market. Currently, the company represents a solid one-year return of 13.6%, much better than the S&P 500’s 6.3% over the same time frame.

Our Take

Of the recent notable developments, the spine division of Stryker announced the launch of LITe BIO Delivery System, a hand-held device which delivers bone graft material to spinal surgery sites.  The company has also inked a partnership with Houston, TX-based Restore Surgical in the recent past.

Coming to the latest development, Stryker’s focus on India is a prudent move in our view. Per a report by Cision, India has been the heart of global joint replacement surgeries and has witnessed a boom in medical tourism, especially from European countries, Africa and Middle East, courtesy of affordable procedure costs for joint replacement surgeries.

In fact, Zimmer Biomet Holdings, Inc. (ZBH - Free Report) , a global leader in musculoskeletal healthcare, has also tied up with IUIH earlier this year.

Buoyed by the huge market prospects in India, Stryker is set to gain significant market traction in the coming quarters, in our view.

Zacks Rank & Key Picks

Stryker has a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical space include Baxter International Inc. (BAX - Free Report) , and IDEXX Laboratories, Inc. (IDXX - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Baxter represents a strong long-term expected growth rate of 12.3%. Notably, the company has a solid one-year return of almost 30%.

IDEXX represents a stellar year-to-date return of almost 55%. The company has a long-term expected growth rate of almost 14.96%.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>

Published in