This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. Dive Brief: Okami Medical has raised $45 million to commercialize medical devices for stopping blood flow, the company said last week.  The company has developed technology that it claims could make vascular embolization faster and better. It competes with embolization coils such as Boston Scientific’s Interlock and Terumo’s Azur. Okami named Drew Hykes as CEO i ...

Group 1 - Stryker Corporation (SYK) is pursuing a near $5 billion "bolt-on" acquisition of Inari Medical to enhance its neurovascular business [1] - The investment group "Value In Corporate Events" focuses on identifying actionable opportunities in major corporate events such as earnings reports, M&A, and IPOs [1] - The service aims to provide coverage of 10 significant events monthly, targeting the best investment opportunities [1]

Core Insights - Stryker Corporation is pursuing a near $5 billion acquisition of Inari Medical to enhance its neurovascular business and strengthen its market position [1] Group 1: Company Strategy - The acquisition of Inari Medical is categorized as a "bolt-on" deal aimed at expanding Stryker's existing capabilities in the neurovascular sector [1] - The investment group "Value In Corporate Events" focuses on identifying actionable opportunities in significant corporate events such as mergers and acquisitions, IPOs, and earnings reports [1] Group 2: Market Position - Stryker Corporation is recognized for its strong performance and strategic growth initiatives within the medical technology industry [1]

Company Overview - Inari Medical, now part of Stryker, has launched the next-generation InThrill Thrombectomy System, which is the first and only purpose-built small vessel and arteriovenous (AV) access thrombectomy system designed for fast, full luminal clot removal [1][2][3]. Product Features - The InThrill Thrombectomy System is an 8 French over-the-wire system that includes the InThrill thrombectomy catheter and sheath, optimized to set a new standard for AV access and small vessel thrombectomy [3]. - Key features of the InThrill system include increased radial force for improved luminal wall apposition, an offset single open mouth for optimized clot capture, internal struts for even clot distribution, and a redesigned backend for enhanced ergonomics [9]. Clinical Application - The system is indicated for the non-surgical removal of thrombi and emboli from blood vessels, including arteriovenous fistulae and grafts for dialysis access, as well as for the injection, infusion, and aspiration of contrast media and other fluids [7]. Market Impact - The launch of the InThrill Thrombectomy System reflects Stryker's commitment to addressing real-world challenges in vascular care, enhancing collaboration with physicians in the vascular space [4]. - Stryker, as a global leader in medical technologies, impacts over 150 million patients annually through innovative products and services [4]. Acquisition Context - Stryker acquired Inari Medical on February 19, 2025, with the aim of transforming the treatment of patients suffering from venous and other diseases [5].

Core Insights - The Medical Instruments industry is experiencing significant advancements due to artificial intelligence (AI) and predictive analytics, which are driving innovation in diagnostics, patient monitoring, and personalized treatment [2][4] - The global AI in healthcare market is projected to grow at a CAGR of 38.5% from 2024 to 2030, despite facing challenges such as geopolitical tensions and supply chain issues [4][8] - The industry is currently underperforming compared to the S&P 500 but has shown resilience against sector declines [17] Industry Overview - The Zacks Medical - Instruments industry is highly fragmented, involving extensive research and development across various therapeutic areas, regulated by the FDA [5] - Recent trends include the integration of AI in diagnostics, the rise of telemedicine, robotic-assisted surgeries, and advancements in 3D printing and gene editing [6][9] - The ongoing merger and acquisition trend is notable, with 305 M&A transactions in 2024 totaling over $63.1 billion, indicating a competitive landscape [10][11] Company Highlights Integer Holdings - Integer Holdings focuses on portfolio optimization and has divested its Non-Medical business to support long-term growth [20] - The consensus estimate for 2025 sales is $1.87 billion, reflecting a 7.7% increase from 2024, with EPS expected to rise by 19.4% to $6.33 [21] AngioDynamics - AngioDynamics is focusing on cancer treatment markets and has a strong product pipeline, with sales for fiscal 2026 estimated at $305 million, a 6.3% increase from fiscal 2025 [22][23] Penumbra - Penumbra is experiencing consistent revenue growth driven by strong patient outcomes and growth in its vascular and neuro businesses [24] - The consensus estimate for Penumbra's 2025 sales is $1.35 billion, indicating a 13.4% rise from 2024, with EPS expected to improve by 67.6% to $3.72 [25]

Core Viewpoint - Stryker's OptaBlate BVN system has received FDA approval, marking a significant advancement in pain management for chronic lumbar pain patients, addressing an unmet clinical need [3][4][7] Product Introduction - The OptaBlate BVN system combines Stryker's established radiofrequency ablation (RFA) technology with advanced spinal access techniques, enabling efficient targeting and ablation of the basivertebral nerve [4][6] - The system can generate a 1 cm lesion in just 7 minutes, significantly reducing surgical time and improving efficiency [4] - It features a controllable curved guide that enhances precision and flexibility during surgery, accommodating various anatomical structures [4] Clinical Applications and Research Data - The OptaBlate BVN system is primarily used for treating chronic lumbar pain, especially in patients who have not achieved lasting relief from physical therapy, injections, or medications [7] - Clinical trials in 2024 indicated that 85% of patients experienced significant pain reduction 12 months post-surgery, with 90% reporting improved activity levels [7] - Long-term benefits of the treatment can last up to five years in terms of pain relief and functional improvement [7] Market Outlook - The global chronic pain management market is substantial, with annual expenditures around $75.4 billion, and there is a growing demand for minimally invasive non-opioid treatments [8] - Chronic spinal pain affects over 58.5 million adults in the U.S., with only 30% of eligible patients currently receiving advanced interventional treatments, leaving an $8.4 billion market gap [8] - The interventional spine treatment market is approximately $15.16 billion and is expanding rapidly at a 20.4% annual growth rate, indicating significant unmet demand [8] - Stryker's neurocranial division reported a 17.8% year-over-year sales increase in Q1 2025, reflecting the effectiveness of its strategic transformation in the high-growth interventional spine sector [8] Competitors in the Same Field - Relievant Medsystems' Intracept system is a well-known device for basivertebral nerve ablation, also FDA-approved for chronic lumbar pain treatment [11] - Avanos Medical's Coolief system utilizes cooled radiofrequency technology for various chronic pain conditions but is not specifically designed for basivertebral nerve ablation [13] - Johnson & Johnson's DePuy Synthes offers radiofrequency ablation devices targeting spinal nerve structures for chronic pain relief, but they are not optimized for basivertebral nerve ablation [15] Company Overview - Stryker is a leading global orthopedic and medical device company focused on developing, manufacturing, and selling advanced medical equipment and solutions across orthopedic, neurotechnology, and surgical fields [15] - In 2024, Stryker achieved strong financial performance with net sales reaching $22.6 billion, a 10.2% year-over-year increase, and Q4 revenue of $6.44 billion, exceeding market expectations [15] - The company completed seven acquisitions in 2024, totaling approximately $1.6 billion, and made a significant acquisition of Inari Medical for $4.9 billion in early 2025, expected to contribute over $590 million in annual revenue growth [15]

Financial Data and Key Metrics Changes - The company reported robust organic sales growth of 10.1% in Q1 2025, with adjusted EPS of $2.84, reflecting a 13.6% increase compared to Q1 2024 [5][6][16] - The adjusted gross margin improved to 65.5%, up 190 basis points year-over-year, while the adjusted operating margin was 22.9%, an increase of 100 basis points [23][27] - The company anticipates full-year organic sales growth of 8.5% to 9.5% and adjusted EPS in the range of $13.2 to $13.45 [7][26][27] Business Line Data and Key Metrics Changes - MedSurg and Neurotechnology achieved organic sales growth of 10.7%, with U.S. growth at 11.4% and international growth at 8.2% [16][19] - The Instruments segment saw U.S. organic sales growth of 10.4%, while Endoscopy reported 11.1% growth driven by core portfolios [17][18] - Orthopedics had organic sales growth of 9.3%, with U.S. knee business growing 8.3% and trauma and extremities growing 15.2% [19][20][21] Market Data and Key Metrics Changes - U.S. organic sales growth was 10.7%, while international organic sales growth was 8.5%, with notable strength in Australia, New Zealand, Japan, and Europe [15][19] - The company noted a favorable pricing impact of 0.7%, while foreign currency had a 0.9% unfavorable impact on sales [14][15] Company Strategy and Development Direction - The company completed the acquisition of Inari Medical, with integration going well and expected to contribute positively to the vascular division [7][12][50] - The company continues to focus on innovation and product launches, including the Mako robotic system and the Pangaea plating system, which are expected to drive future growth [10][11][12][58] - The company is addressing tariff impacts through pricing strategies, operational efficiencies, and leveraging its manufacturing footprint [27][33][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth, citing strong demand and no significant red flags in the operating environment [35][40] - Supply chain disruptions were acknowledged, particularly in the medical segment, but these were factored into the guidance [40] - The company remains optimistic about maintaining strong sales momentum and achieving its margin improvement targets despite tariff challenges [27][44][68] Other Important Information - The company has been recognized for the fifteenth consecutive year on Great Place to Work's list of 100 Best Companies to Work For, highlighting its strong corporate culture [8] - The company expects a tariff impact of approximately $200 million in 2025, with ongoing efforts to mitigate this through various strategies [27][33] Q&A Session Summary Question: How is the company planning to absorb the estimated $200 million tariff impact? - Management indicated that the absorption will come from strong sales momentum, pricing strategies, and optimizing operational expenditures [30][32] Question: What is the outlook for the orthopedics market and the company's positioning? - Management noted that the orthopedics market remains healthy, with expectations for growth above the market average due to strong demand and successful product launches [34][35] Question: Can you provide insights on the gross margin expectations for the rest of the year? - Management expects a balanced contribution to margin improvement from both gross margin and operational expenditures, despite potential tariff impacts in the latter half of the year [42][44] Question: How is the integration of Inari progressing? - The integration is going well, with positive early performance and alignment with the company's culture [50] Question: What are the expectations for capital expenditures in 2026? - Management indicated that it is too early to provide a detailed outlook for 2026, but they remain optimistic about capital needs tied to strong procedural volumes [102]

Financial Data and Key Metrics Changes - The company reported robust organic sales growth of 10.1% in Q1 2025, with adjusted EPS of $2.84, reflecting a 13.6% increase compared to Q1 2024 [5][6][16] - The adjusted gross margin improved to 65.5%, up 190 basis points year-over-year, while the adjusted operating margin was 22.9%, an increase of 100 basis points [24][25] Business Line Data and Key Metrics Changes - MedSurg and Neurotechnology achieved organic sales growth of 10.7%, with U.S. growth at 11.4% and international growth at 8.2% [16][20] - Orthopedics saw organic sales growth of 9.3%, with U.S. knee business growing 8.3% and hip business growing 7.6% [20][21] - Trauma and Extremities businesses grew 15.2% organically, driven by strong performance in core trauma and upper extremities [22][58] Market Data and Key Metrics Changes - U.S. organic sales growth was 10.7%, while international organic sales growth was 8.5%, with notable strength in Australia, New Zealand, Japan, and Europe [15][20] - The company anticipates continued strength in procedural demand, particularly in robotic-assisted surgery [9][10] Company Strategy and Development Direction - The company completed the acquisition of Inari Medical, with integration going well and expected to contribute positively to the vascular division [6][12][51] - The company is focused on maintaining double-digit organic sales growth, with guidance for 2025 set at 8.5% to 9.5% [6][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth, citing strong demand and no major red flags in the operating environment [41][42] - The company is taking measures to mitigate the estimated $200 million impact from tariffs through pricing strategies and operational efficiencies [27][34] Other Important Information - The company is recognized for the fifteenth consecutive year on Great Place to Work's list of 100 Best Companies to Work For [7] - The company expects to launch Mako Spine in the second half of 2025 and Mako Shoulder in Q1 2026 [10][12] Q&A Session Summary Question: How is the company absorbing the $200 million tariff impact? - The company plans to offset the tariff impact through strong sales momentum, pricing strategies, and optimizing the supply chain [31][34] Question: What is the outlook for the orthopedics market? - The orthopedics market remains healthy, with strong demand and expectations for growth above the market average [36][37] Question: How is the launch of LifePack 35 progressing? - The launch is going well, with strong order pipelines and positive market reception [68][70] Question: What are the expectations for capital expenditures in 2026? - Early conversations suggest continued strength in capital demand, particularly tied to procedural needs [100][101] Question: How is the integration of Inari going? - The integration is progressing well, with strong early performance and alignment with Stryker's culture [51][52]

Core Insights - Stryker reported a consolidated net sales of $5.9 billion for Q1 2025, reflecting an increase of 11.9% compared to the previous year, with a constant currency growth of 12.8% [2][13] - The company achieved organic net sales growth of 10.1%, driven by a 9.4% increase in unit volume and a 0.7% increase in prices [2][13] - Adjusted net earnings increased by 14.0% to $1.1 billion, with adjusted earnings per diluted share rising by 13.6% to $2.84 [4][13] Sales Performance - MedSurg and Neurotechnology segment net sales reached $3.5 billion, up 13.4% year-over-year, with organic growth of 10.7% [2][3] - Orthopaedics segment net sales were $2.4 billion, reflecting a 9.7% increase, with organic growth of 9.3% [3][21] - The U.S. market contributed $4.44 billion in sales, a 13.4% increase, while international sales grew by 7.3% to $1.426 billion [22] Earnings Analysis - Reported net earnings decreased by 17.0% to $654 million, with diluted earnings per share falling by 17.6% to $1.69 [4][13] - The reported gross profit margin was 63.8%, while the adjusted gross profit margin improved to 65.5% [4][13] - Operating income margin was reported at 14.3%, with an adjusted operating income margin of 22.9%, an increase of 100 basis points [4][13] 2025 Outlook - The company raised its full-year 2025 organic net sales growth guidance to a range of 8.5% to 9.5%, reflecting strong demand for capital products [5][6] - Adjusted net earnings per diluted share guidance is now projected to be between $13.20 and $13.45, inclusive of dilution from the Inari Medical acquisition [6][5]

Group 1: Bank of America Corporation (BAC) - Bank of America shares have gained +2.5% over the past year, underperforming the Zacks Financial - Investment Bank industry's gain of +20.4% [3] - Non-interest income is projected to rise only 3.4% in 2025, while total non-interest expenses are expected to increase by 3% [4] - Net interest income (NII) is anticipated to grow at a CAGR of 5.3% over the next three years, with total revenues projected to increase by 4.8% in 2025 [5] Group 2: Chevron Corporation (CVX) - Chevron shares have declined -6.2% over the past six months, compared to the Zacks Oil and Gas - Integrated - International industry's decline of -11.9% [6] - The planned acquisition of Hess Corporation is expected to enhance Chevron's presence in oil-rich Guyana, although the company faces challenges from oil price fluctuations and high valuation [7] Group 3: Stryker Corporation (SYK) - Stryker shares have gained +4.3% over the past year, slightly underperforming the Zacks Medical - Products industry's gain of +5.5% [8] - Growth drivers include rising demand for robotic-assisted procedures, hospital capital expenditures, and international expansion, supported by the Mako SmartRobotics platform [9] - However, foreign exchange volatility and supply chain disruptions may impact earnings, alongside increasing competition in the MedTech sector [10] Group 4: Value Line, Inc. (VALU) - Value Line shares have outperformed the Zacks Financial - Investment Management industry over the past year, with a gain of +10% compared to +6.4% [11] - The company has robust cash generation, with cash balances increasing to $27.1 million from $6.1 million year-over-year, supporting dividends and growth investments [11] - However, core publishing revenue declined to $26.7 million, and customer concentration poses a risk [13] Group 5: Sypris Solutions, Inc. (SYPR) - Sypris Solutions shares have gained +3.6% over the past year, underperforming the Zacks Electronics - Miscellaneous Services industry's gain of +36.3% [14] - The company benefits from a long-term supply agreement with a global OEM, providing stable revenues as a sole-source supplier [14] - However, liquidity challenges and rising costs may constrain financial flexibility, while competitive pressures in aerospace heighten vulnerability [16]