Stryker to Acquire Mobius Imaging and Cardan Robotics for $370M

Wall Street Reacts

Wall Street analysts reacted to the news of the acquisition with notes to their clients analyzing the potential growth.

Cantor Fitzgerald analyst Craig Bijou wrote, “While this transaction is not likely to have an immediate material financial impact, the acquisition further supports our view that enabling technologies, including advanced imaging and robotics, will be an integral facet of spine surgery moving forward. We think the acquisition better positions SYK to compete with the others in the top 6 spine companies—MDT (NC), JNJ (NC), NUVA (N), GMED (OW) and ZBH (OW)—that all have either commercialized enabling technologies (including robotics) or are in some stage of development…The acquisition gives SYK Spine business immediate entry into the intra-operative imaging segment. Longer-term, we expect the technology and pipeline to enhance SYK’s development of its Mako spine robot.”

Canaccord Genuity analyst Kyle Rose echoed this sentiment. He stated, “We view the M&A positively as it provides Stryker’s Spine division with an immediate entry into the intra-operative imaging market, complements its existing implant and navigation offerings, and significantly bolsters the company’s robotic and navigation expertise, something we continue to view as the future of spine surgery. What’s more, we believe the addition of these technologies, when fully integrated into SYK’s broader product portfolio (navigation and implant systems), substantially improves SYK’s ability to compete head-to-head with Medtronic on bundled contracts given MDT’s very public focus on using its ‘enabling technologies’ to secure market share and pull through implant utilization.”

Analyst Joanne K. Wuensch of BMO Capital Markets noted the growing trend of robotics acquisitions. She stated, “Robotics is running wild in Medical Technology, as this marks yet another robotic acquisition following Siemens Healthineers’ acquisition of Corindius Vascular Robotics for $1.1B on August 8, 2019. Further, we expect the grand unveiling of Medtronic’s minimally invasive surgical robotic platform on Tuesday, September 24 in Hartford, CT, where we will see the robotic system used in a cadaver lab setting. While Stryker’s acquisition participates in an entirely different surgical domain, there is a clear underlying theme, as robotics is becoming widely recognized across the industry…We believe the combination of Mobius and Cardan helps Stryker close the gap between its spine competitors who have commercialized robotic solutions today.”