Stryker Corporation is betting serious dollars that smart implants will have an important role to play in the future of orthopedic implants. Late in 2020, Stryker announced the purchase of Dania Beach, Florida-based OrthoSensor, Inc., developer of an entirely new generation of “intelligent” implants and devices. (Financial terms weren’t disclosed.)
Founded in 2007, OrthoSensor “develops and commercializes intelligent orthopaedic devices and data services that provide quantitative feedback to surgeons and hospitals.”
Stryker Group President, Orthopaedics and Spine, Spencer Stiles is excited about this acquisition, saying, “Smart devices and implants will play a big role in orthopaedics and we are excited for OrthoSensor to join Stryker as we continue to innovate and advance smart sensor technologies, including intraoperative sensors, wearables and smart implants across our joint replacement business.”
Stiles continued, “Patient recovery will become more active as real-time measurement on key performance insights drive improved outcomes and patient satisfaction.”
Analyst Insights
Wells Fargo analysts appear to agree with Stiles that smart implants will be influential in orthopedics. An equity research team wrote a note regarding the acquisition.
The Wells Fargo research note listed three key takeaways:
- First, the news did not come as a surprise because OrthoSensor’s VERASENSE intraoperative sensor that allows for knee balancing has been incorporated in Stryker’s flagship Triathlon knee since 2011.
- Second, the analysts expect that the sensor technology will be integrated with Stryker’s Mako SmartRobotics platform. This will “provide data-driven feedback mechanism intra-operatively that will complement the precision of its cuts.”
- Third, the analysts expect Stryker will continue to improve its data analytics capabilities by incorporating remote patient monitoring with wearable sensors such as MotionSense and cloud-based computing such as OrthoLogIQ to its offering.
In conclusion, the Wells Fargo team believes that the OrthoSensor acquisition “validates our call that smart implants represent the next major breakthrough in orthopedics.”
The note was authored by Larry Biegelsen, Lei Huang, Shagun Singh, and Kevin Farshchi of Wells Fargo Securities, LLC.
