Orthopedic giant
Stryker
(
SYK
) has completed the patient enrollment for the pivotal TREVO 2
trial, which is evaluating the safety and efficacy of Concentric
Medical's next-generation Trevo Retriever for removing blood clot
from patients with ischemic stroke, a leading cause of death in the
U.S. Stryker completed its acquisition of California-based stroke
intervention products maker Concentric in October 2011.
Concentric received the U.S. Investigational Device Exemption
("IDE") for the TREVO 2 study in December 2010 and commenced
enrollment in February 2011. The trial has enrolled 178 patients in
27 institutions across the U.S. and Europe.
The Trevo Retriever is the first device that uses Concentric's
Stentriever technology, a novel method for removing clots in
ischemic stroke patients. The device is geared to providing rapid
access to the clot, fast integration with the thrombus and
effective removal. Da ta from the TREVO 2 trial will be used in the
regulatory filing for the U.S. approval of the Trevo Retriever.
The acquisition Concentric has provided Stryker access to the
fast-growing acute ischemic stroke market in the U.S., Europe and
Japan. The addition of Concentric's offerings enables the Michigan
-based company to offer complete interventional stroke care to
patients globally. The transaction is expected to be neutral to
Stryker's earnings per share for 2011.
We believe that Stryker is poised for growth powered by new
products, acquisitions and recovery in capital spending by
hospitals. The co mpany is expanding its product portfolio by
acquiring complementary businesses leveraging a solid balance
sheet.
However, Stryker operates in a highly competitive orthopedic
industry and faces strong competition from players like
Zimmer
(
ZMH
),
Johnson & Johnson
's (
JNJ
) DePuy and
Smith & Nephew
(
SNN
). Moreover, it remains challenged by the sustained lumpiness in
the reconstructive implant market and pricing and elective
procedure volume still remains headwinds.
Currently, we are Neutral on Stryker. The stock holds a Zacks #2
Rank, which translates into a short-term "Buy" recommendation.
JOHNSON & JOHNS (
JNJ
): Free Stock Analysis Report
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SNN
): Free Stock Analysis Report
STRYKER CORP (
SYK
): Free Stock Analysis Report
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ZMH
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