Stryker Corporation SYK has announced the launch of the next generation of SurgiCount+ within its sponge management portfolio.
SurgiCount+, integrated with Stryker’s Triton technology, is likely to provide solutions for retained surgical sponges and blood-loss assessment. Integrating these previously separate digital solutions is likely to provide the added benefit of more efficiency and a streamlined workflow for hospitals.
Likely Trend of SYK Stock Following the News
Following the announcement, shares of the company moved nearly 1.6% north to $389.47 in yesterday’s aftermarket trading. In the year-to-date period, SYK shares have rallied 28% compared with the industry’s 13.8% growth. The S&P 500 increased 26% in the same time frame.
Meanwhile, SYK currently has a market capitalization of $148.04 billion. It has an earnings yield of 3.1%, higher than the industry’s yield of 1.5%. In the last reported quarter, SYK delivered an earnings surprise of 3.2%.
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More on SYK’s SurgiCount+
SurgiCount+ with Stryker’s Triton software has a Bluetooth scale that weighs blood-soaked objects in bulk to help determine blood loss, as well as artificial intelligence (AI) technology that can distinguish blood from other fluids. This provides hospital staff with real-time information to help coordinate the clinical team’s hemorrhage response and make informed patient care decisions. Because of the quick hemorrhage response, a significant percentage of pregnancy-related deaths due to hemorrhage can be prevented.
Surgical sponges are one of the retained surgical items, with the majority of the retained surgical items occurring with a false correct count. It can be time consuming for nurses to locate a missing sponge in the operating room (OR). Stryker’s SurgiCount+ software helps address these problems by featuring a wireless reader that counts, tracks and locates surgical sponges in the OR. RFID-tagged sponges enable unique identification, eliminating false, correct, duplicate or unknown counts.
Integrating SYK’s SurgiCount+ and Triton technologies on a single platform is likely to set a new industry standard for quantifying blood loss and continuing to help reduce retained surgical sponges in the OR. This integration is likely to save time by standardizing clinical protocols for charting, along with simplifying workflows and aggregating case data with backend data.
More on the SYK’s Triton Technology
Triton technology was developed by a medical device company, Gauss Surgical. In September 2021, SYK completed the acquisition of Gauss Surgical. Triton technology features an AI-enabled platform for real-time monitoring of blood loss during surgery. Triton has demonstrated improvements in maternal and surgical care through earlier recognition of hemorrhage leading to earlier intervention.
Favorable Industry Prospects for SYK
Per a report by Future Market Insight, the global hemorrhage control market was estimated to be $4.1 billion in 2022 and is anticipated to surpass $7.6 billion by 2032 at a CAGR of 3%.
Given the market potential, the latest launch of SYK’s SurgiCount+ is likely to provide a boost to SYK’s sponge management business.
Stryker’s Zacks Rank & Stocks to Consider
SYK carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are AngioDynamics ANGO, Quest Diagnostics DGX and RadNet RDNT. Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.
AngioDynamics’ shares have lost 19.2% year to date against the industry’s6.1% growth.
Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, with an average surprise being 3.3%.
Quest Diagnostics has gained 42% year to date compared with the industry's 14.9% growth.
RadNet’s earnings surpassed estimates in the trailing four quarters, the average surprise being 98.2%.
RDNT shares have risen 93.7% year to date compared with the industry’s 14.8% growth.
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