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Stryker's LIFEPAK CR2 Defibrillator Launch to Boost MedSurg

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Stryker Corporation (SYK - Free Report) recently announced the U.S. launch of its newest defibrillation solution, the LIFEPAK CR2 automated external defibrillator ("AED") with LIFELINKcentral AED program manager. This development came on the heels of the company receipt of FDA’s Premarket Approval ("PMA") in February.

This development is likely to fortify Stryker’s hold in the U.S. emergency service products market apart from strengthening its core MedSurg arm.

About LIFEPAK CR2 Defibrillator

The LIFEPAK CR2 defibrillator comes handy during a cardiac emergency and reduces delayed treatment. It features an array of new technology, including an industry-first cprINSIGHT technology that helps improve survival outcomes. The device is also capable of remotely monitoring patient outcomes through Wi-Fi connectivity by providing near real-time email alerts.

Notably, the device was released in Europe and Canada in 2017 and in Japan in 2018.

Some other emergency care products and systems in Stryker’s portfolio are Berchtold F 300, S-Series Equipment Management System, the Teletom and the iSuite Experience.

MedSurg at a Glance

MedSurg products consist of surgical equipment and surgical navigation instruments, endoscopic and communications systems and patient handling and emergency medical equipment.

Notably, the segment is one of the key drivers of Stryker’s top line, contributing a significant 62.1% to net sales in the last reported quarter. The segment’s sales rose 10% organically in the quarter.

Management is also optimistic about a series of products slated to be launched by the unit in 2019.

Market Prospects

Grand View Research projects that the U.S. emergency medical services products market will see a CAGR of 7.2% between 2018 and 2025.

Growing demand for emergency care, rising incidence of trauma, and increasing healthcare spending are among the key trends fueling market growth.

 

Price Performance

Over the past year, shares of Stryker have rallied 19.4% compared with the industry’s 8.3% increase. The current level is also higher than the S&P 500 index’s 8.2% rise.

Key Picks

A few better-ranked stocks in the broader medical space are Penumbra (PEN - Free Report) , Wright Medical and Masimo Corp. (MASI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Penumbra has a long-term earnings growth rate of 20.9%.

Wright Medical’s long-term earnings growth is projected at 11.3%.

Masimo’s long-term earnings are expected to grow 15.6%.

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