Stryker (SYK) 2024 Wells Fargo Healthcare Conference summary

Business performance and growth outlook

• Orthopedics saw strong first-half 2024 growth, driven by demand for Mako and new product launches like Insignia Hip Stem.

• Core trauma, upper extremities, and foot and ankle businesses outperformed expectations, with some normalization in volumes by August.

• Hip and knee procedure volumes have shifted from low to mid-single digit growth, supported by favorable demographics and improved pricing.

• Pricing pressure has eased, with orthopedic pricing nearly flat in 2024 compared to historical declines of 2–3%.

• Share-taking strategies are expected to continue, with 2025 growth anticipated to outperform the market.

Technology and innovation

• Mako installations reached record levels in Q2, supported by a direct-to-patient campaign and ongoing high demand.

• Continued investment in Mako platform includes new applications for hip, knee, shoulder, and spine, with upgrades and hardware improvements planned.

• Mako Spine received 510(k) clearance and will launch in Q4 2024, with a slow ramp expected through 2025.

• Mako Shoulder is in regulatory review, with first cases expected by year-end, initially focusing on reverse shoulder procedures.

• Differentiation in robotics includes proprietary implants, haptics, and integrated planning, with a focus on expanding utilization and share.

Capital environment and ambulatory surgery centers (ASCs)

• Capital spending remains strong in orthopedics and MedSurg, with robust demand from hospitals and ASCs.

• Mako is a key driver in ASC adoption, with nearly all new builds considering or acquiring the system.

• Collaboration between MedSurg and Orthopedics divisions supports ASC growth and customer alignment.

• Hardware and software upgrades for Mako present significant financial opportunities, with potential for increased system sales and application upgrades.