We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stryker's HyperBranch Buyout to Boost Neurotechnology Business
Read MoreHide Full Article
Stryker Corporation (SYK - Free Report) recently announced the acquisition of HyperBranch Medical Technology for a deal value of $220 million in cash. The buyout is likely to boost Stryker’s core Neurotechnology business. Management expects the acquisition to remain neutral to Stryker’s 2018 earnings.
Rationale Behind the Deal
North Carolina-based HyperBranch Medical Technology is privately-held company, specialized in developing medical devices based on its proprietary polymers and cross-linked hydrogels. Notably, the company’s Adherus AutoSpray Dural Sealant product is one of the only two FDA-approved dural sealants in the market.
Per Stryker’s management, HyperBranch’s Adherus product is complementary to its Craniomaxillofacial division. Notably, Srtyker’s maxillofacial surgical solutions include products like Advanced Midface Distractor, Cranial iD and the DuraMatrix portfolio. All these products enjoy high demand and have been significantly contributing to the company’s growth.
Thus, the latest move fortifies the Michigan-based MedTech giant’s position in the craniomaxillofacial devices market.
Neurotechnology at a Glance
Stryker’s Neurotechnology business has consistently driven the company’s top line. The company continues to witness robust demand for its Neurotechnology products.
Notably, the segment offers spine, cranial and neurovascular surgical solutions.
In fact, in the last reported quarter, Neurotechnology business grew 23.1% year over year and 15.4% organically.
Market Prospects
Grand View Research validates that the global craniomaxillofacial devices market was valued at $1.28 billion in 2016 and is expected to see a CAGR of 8.6% by 2025.
Rising incidences of road accidents due to urbanization and industrialization along with growing demand for reconstructive surgeries currently drive the market.
Price Performance
We believe positive developments such as these will provide cushion to the stock, which has rallied 23.5% compared with the industry’s 25.1% rise in a year’s time. However, the current level is higher than the S&P 500 index’s 16% increase.
The stock currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the broader medical space are Baxter International (BAX - Free Report) , Intuitive Surgical (ISRG - Free Report) and Inogen, Inc. (INGN - Free Report) .
Intuitive Surgical has an expected long-term earnings growth of 14.7%. The stock has a Zacks Rank #2.
Inogen’s long-term earnings growth rate is projected at 24.5%. The stock has a Zacks Rank #2.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
Image: Bigstock
Stryker's HyperBranch Buyout to Boost Neurotechnology Business
Stryker Corporation (SYK - Free Report) recently announced the acquisition of HyperBranch Medical Technology for a deal value of $220 million in cash. The buyout is likely to boost Stryker’s core Neurotechnology business. Management expects the acquisition to remain neutral to Stryker’s 2018 earnings.
Rationale Behind the Deal
North Carolina-based HyperBranch Medical Technology is privately-held company, specialized in developing medical devices based on its proprietary polymers and cross-linked hydrogels. Notably, the company’s Adherus AutoSpray Dural Sealant product is one of the only two FDA-approved dural sealants in the market.
Per Stryker’s management, HyperBranch’s Adherus product is complementary to its Craniomaxillofacial division. Notably, Srtyker’s maxillofacial surgical solutions include products like Advanced Midface Distractor, Cranial iD and the DuraMatrix portfolio. All these products enjoy high demand and have been significantly contributing to the company’s growth.
Thus, the latest move fortifies the Michigan-based MedTech giant’s position in the craniomaxillofacial devices market.
Neurotechnology at a Glance
Stryker’s Neurotechnology business has consistently driven the company’s top line. The company continues to witness robust demand for its Neurotechnology products.
Notably, the segment offers spine, cranial and neurovascular surgical solutions.
Last month, Stryker announced an agreement to acquire Invuity Inc. which is expected to aid the company’s Neurotechnology & Spine segment. (Read More: Stryker to Acquire Invuity, Boost Surgical Portfolio)
In fact, in the last reported quarter, Neurotechnology business grew 23.1% year over year and 15.4% organically.
Market Prospects
Grand View Research validates that the global craniomaxillofacial devices market was valued at $1.28 billion in 2016 and is expected to see a CAGR of 8.6% by 2025.
Rising incidences of road accidents due to urbanization and industrialization along with growing demand for reconstructive surgeries currently drive the market.
Price Performance
We believe positive developments such as these will provide cushion to the stock, which has rallied 23.5% compared with the industry’s 25.1% rise in a year’s time. However, the current level is higher than the S&P 500 index’s 16% increase.
The stock currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the broader medical space are Baxter International (BAX - Free Report) , Intuitive Surgical (ISRG - Free Report) and Inogen, Inc. (INGN - Free Report) .
Baxter’s long-term earnings growth rate is projected at 12.4%. The stock has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical has an expected long-term earnings growth of 14.7%. The stock has a Zacks Rank #2.
Inogen’s long-term earnings growth rate is projected at 24.5%. The stock has a Zacks Rank #2.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>