Medical device maker Stryker announced on Monday, November 4, it would buy smaller rival Wright Medical for about US$4 billion in cash, expanding into the fast-growing business of implants for shoulders and wrists, reported Reuters.
The latest in a series of consolidations in the medical device industry, the deal will catapult Stryker to become one of the market leaders in implants for the treatment of bone fractures as well joint replacements.
The 69-year-old Wright Medical, which recorded sales of US$836 million last year, also makes implants for foot and ankle.
Wells Fargo analyst Larry Biegelsen said the deal would give Stryker a leading position in the shoulder market, which has been a major gap in the device maker’s orthopedic portfolio.
“Stryker will meaningfully bolster its ability to compete and innovate in the nearly US$2 billion global shoulder market,” CEO Kevin Lobo said on a conference call with analysts.
Full Content: Reuters
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