Stryker Corp. (SYK) recently signed a deal for global marketing and distribution rights of Advanced Medical Solutions Group Plc’s LiquiBand wound closure products that are used in cranio-maxillofacial (CMF) surgeries.
LiquiBand is a tissue adhesive used to close minor surgical wounds and trauma. The product would be launched in European markets this month and would be followed by a phased roll out in the rest of the world.
The deal is going to be a win-win for both the companies. Stryker will earn commissions that will take care of the company’s bottom-line during these testing times of global recession. Advanced Medical can leverage Stryker’s global presence and its brand equity.
Stryker is one of the world’s largest medical devices companies operating in the global orthopedic market. The company currently has two segments: Orthopedic Implant and MedSurg Equipment. The Orthopedic Implant segment includes hip, knee, shoulder and spinal implants and associated instruments; trauma-related products; bone cement; and Stryker Leibingers (plate and screw systems for hand, face, and head procedures). The MedSurg Equipment segment is comprised of three main divisions: Stryker Instruments (powered surgical tools), Stryker Endoscopy (powered surgical instruments and viewing aids) and Stryker Medical (specialty stretchers).
The company has been facing several headwinds of late. These include current economic uncertainty, delayed capital spending by hospitals, an increase in uninsured population that is stemming from higher unemployment, weaker foreign exchange and pressures from international markets. Based on the company’s performance in the first quarter of 2009, our recent report on Stryker has a Hold rating for the company’s stock.
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