How Stryker Made Q3 Look Easy

Like a lot of medtech companies, Stryker faced both external and internal challenges during the third quarter. But the Kalamazoo, MI-based company still managed to impress investors with 5.5% organic growth compared to the same period last year. Stryker's revenue growth took a 2.4% hit from an ongoing recall combined with a negative impact from recent hurricanes. The company also had to adjust for one less selling day in the quarter, which brought the organic growth down by another 1%. Styker cut its guidance for the year in August as it recalled certain lots of oral care products sold by the company's Sage Products business unit. The recalled products contain oral care solutions manufactured for Sage by a third-party supplier. The recall was prompted by cross-contamination concerns because the oral care solutions were manufactured on equipment shared with non-pharmaceutical products, according to a July warning letter from FDA. While no serious adverse events were reported in connection to the problem, the company said there were some reports of minor irritation and allergic reaction.  FDA also had concerns about microbiological testing methods used for all products containing solutions sold by Sage, including cloth-based products, so Stryker had to place a temporary shipping hold on those products until they were tested using a different method, as required by FDA. Katherine Owen, vice president of strategy and investor relations at Stryker, told analysts during the comp...
Source: MDDI - Category: Medical Devices Authors: Tags: Medical Device Business Orthopedics Source Type: news