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Stryker Expands Acquisition Portfolio With Arrinex Buyout

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Stryker Corporation (SYK - Free Report) recently completed the acquisition of Arrinex, a California-based medical device company. Notably, Arrinex’s flagship ClariFix, a novel cryoablation technology for the treatment of chronic rhinitis, is expected to expand Stryker’s Ear, Nose and Throat (ENT) portfolio, part of the company’s Neurotechnology & Spine business.

Following the announcement, shares of Stryker fell 0.9% to $187.48 at close. Over the past year, the Zacks Rank #2 (Buy) stock has rallied 15.6%, outperforming the S&P 500 index’s rally of 1.9%.

A Peek Into Stryker’s ENT Unit

Stryker’s ENT portfolio has made it a leading player in the medical device market. The company offers specially curated set of tools for treating ENT conditions.

Notably, its XprESS ENT dilation system and LATERA absorbable nasal implant and products like Cliq suction pump, Sinuscopes and others deserve a mention in this regard.

The broader segment, Neurotechnology & Spine, contributed 18.4% to the company’s net revenues in the fourth quarter of 2018. The segment also specializes in Neurosurgiccal, Neurovascular and Spine & Biologics services.

Stryker’s Acquisition Portfolio

Stryker has been following an acquisition-driven strategy to boost growth.

Last October, the company announced the takeover of HyperBranch Medical Technology for a deal value of $220 million in cash. (Read More: Stryker's HyperBranch Buyout to Boost Neurotechnology Business)

Last September, Stryker acquired Invuity Inc. for approximately $190 million. (Read More: Stryker to Acquire Invuity, Boost Surgical Portfolio)

Additionally, Stryker closed the acquisition of K2M Group Holdings in the fourth quarter of 2018, which is expected to strengthen its position in the spine and related neurotechnology market. (Read More: Stryker to Acquire K2M Group, Fortify Spine Division)

Market Prospects

Global Market Insights opines that the worldwide ENT devices market is expected to see a CAGR of 8% from 2019 to 2025.

Integration of advanced technology for developing superior quality ear, nose and throat devices coupled with successful product launches and regulatory approvals is likely to fuel growth.

Some other major players in the space are Medtronic (MDT - Free Report) and Siemens (SIEGY - Free Report) . Metronic offers products for nerve monitoring while Siemens’ broad spectrum of hearing aids currently see robust demand.

Another Key Pick

Another key pick from the Medical Products space is Abbott Laboratories (ABT - Free Report) .

Abbott’s long-term earnings growth rate is projected at 11.7%. The stock has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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