Friday, September 27, 2013

MassDevice: Will The Stryker-MAKO Deal Lead To More Action In Ortho?

Stryker (NYSE:SYK) certainly found a way to liven up the ortho space, with Wednesday's announcement that it is buying Mako Surgical (NSDQ:MAKO) for a whopping 13 times 2013 estimated revenue. Stryker had been pretty clear about its intentions to put cash towards M&A, and Stryker's relative challenges in knees were already known, but few industry-watchers saw this deal coming, and certainly not at this price.

Over time, I think Stryker could do a lot with Mako. Obviously Stryker's management thinks so too, or they wouldn't have paid so much for it. What I'm interested to see now, though, is whether this move leads to any sort of consolidation push in the ortho industry and/or whether Stryker+Mako will fundamentally alter the balance of power in major joint recon and push the likes of Johnson & Johnson (NYSE:JNJ) and Zimmer (NYSE:ZMH) to up their games.

Read the full article here at MassDevice:

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