Medical technologies major Stryker Corporation (SYK - Free Report) recently launched its latest Trevo Pro Vue stent retriever in the global market. This one-of-a-kind fully visible stent retriever device is used to treat acute ischemic strokes.
Michigan-based Stryker entered the ischemic stroke market with the acquisition of Concentric Medical in October 2011. The Trevo Pro Vue stent retriever system from Concentric further expands Stryker’s Complete Stroke Care portfolio under the Neurovascular division.
The Trevo Pro Vue Retriever’s unique design allows physicians full visibility while removing clots during surgeries, thereby enhancing clinical efficiency and patient outcome. The device received Food and Drug Administration (FDA) 510(k) approval in August and is commercially available in select international markets.
Stryker’s Neurotech business has been posting strong results on the back of new products as well as the Orthovita and Concentric acquisitions. In the last reported quarter, revenues from this segment jumped 10.8% year over year to $205 million. Supported by encouraging clinical trials, the Trevo system is expected to be the latest growth driver for the company’s neurovascular segment.
Stryker is one of the world’s largest medical device companies operating in the global orthopedic market. The company is poised to grow by virtue of its strong and diversified product portfolio, innovative pipeline, strategic acquisitions along with ongoing cost control measures and increasing operating efficiency.
However, despite recent stability in the domestic market, Stryker faces several challenges, which include still soft international sales, tough hospital capital budgets and the upcoming Med-tech tax. Moreover, it remains challenged by currency fluctuations and pricing pressure.
Weakness in the Reconstructive and Medical businesses as well as sluggish spine sales continue to be a drag on Stryker. Additionally, the company operates in the highly competitive orthopedic industry and faces strong competition from players like Zimmer Holdings Inc. . We currently have a ‘Neutral’ recommendation on Stryker, which carries a short-term Zacks #4 Rank (Sell rating).