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Stryker Closes Entellus Buyout, Bolsters Neurotechnology Line

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Stryker CorporationSYK recently completed the acquisition of Minnesota-based Entellus Medical, for $662 million or $24 per share. The deal was initiated in December 2017 and was subject to Entellus' stockholders' approval. According to Stryker, this acquisition is likely to boost the company's Neurotechnology segment.

Per management, Entellus' innovative product line within the ENT (Ear, Nose and Throat) segment with a number of minimally invasive procedures will aid Stryker to offer cost-effective solutions to patients.

The acquisition will be dilutive initially to Stryker's 2018 adjusted earnings per share by approximately 4 cents but will be accretive thereafter.

Stryker Corporation Price and Consensus

Stryker Corporation Price and Consensus | Stryker Corporation Quote

Promising Market

Neurotech Report forecasts that the global market for neurotechnology products, which was $7.6 billion in 2016, will grow to $12 billion by 2020, marking a 12% compound annual growth rate. Accordingly, we believe the acquisition to be strategic and well timed.

Recent Acquisitions in Focus

In October 2017, Stryker acquired VEXIM SA, a French medical device company offering minimally invasive treatment of vertebral fractures, in a bid to augment its Interventional Spine business.

In September 2017, the company acquired Canada-based NOVADAQ Technologies Inc. for $701 million. NOVADAQ develops fluorescence imaging technology that provides surgeons with visualization of blood flow in vessels and related tissue perfusion in cardiac, cardiovascular, gastrointestinal, plastic, microsurgical and reconstructive procedures.

In April 2017, Stryker acquired controlled substance waste management system maker Cactus, LLC. The acquisition is helpful in improving anti-drug diversion efforts, promote environmentally sustainable disposal practices.

Notably, these acquisitions have bolstered the company's sales and marketing execution.

Price Performance

Over a year, Stryker has outperformed the industry . The stock returned 23.9% compared with the industry's gain of 13%.

Zacks Rank and Key Picks

Stryker carries a Zacks Rank #3 (Hold).

A few better-ranked medical stocks are, Bio-Rad Laboratories Inc. BIO , Centene Corporation CNC and Mednax, Inc. MD . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank Stocks Here .

Bio-Rad has a projected long-term growth rate of 20%. The stock has returned 21.4% in the past six months.

Centene has an anticipated long-term growth rate of 14%. The stock has returned 14.1% in the past six months.

Mednax has an expected long-term growth rate of 10%. The stock has returned 28.9% in the past six months.

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Stryker Corporation (SYK): Free Stock Analysis Report

Bio-Rad Laboratories, Inc. (BIO): Free Stock Analysis Report

Centene Corporation (CNC): Free Stock Analysis Report

Mednax, Inc (MD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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