Stryker is selling off its spine implant business—starting with a plan to spin off its U.S. operations before moving on to divest its international enterprises in the months to come.
The investment firm Viscogliosi Brothers has agreed to purchase the company’s stateside unit, which it will relaunch as an independent venture named VB Spine.
“We have long admired Stryker for its comprehensive spine portfolio, incredible talent, and strong culture,” the firm’s co-founders Marc, John and Anthony Viscogliosi said in a statement. “We see a tremendous opportunity to provide the focus, surgeon-centric innovation, and commercial execution needed to grow the business and further impact patient lives and outcomes.”
VB Spine is set to serve as a strategic partner with Stryker, employing exclusive access to the company’s Mako Spine robotics and Copilot guidance software—each making their debuts late last year.
The agreement also includes a binding offer to acquire Stryker’s spine implants business in France; Stryker said its operations in other international markets is anticipated, pending legal and regulatory requirements. The U.S. portion of the deal is expected to close in the first half of this year.
“We believe that the spinal implants business, with its comprehensive portfolio and strong sales channel, will thrive as an independent company," said Kevin A. Lobo, Chair and Chief Executive Officer at Stryker. "With dedicated resources and a focused strategy, the business will be well positioned to succeed as part of Viscogliosi Brothers.”
Stryker also posted its 2024 financial results (PDF), reporting an increase in net sales of 10.2% to reach $22.6 billion. Revenues followed a similar trajectory in the fourth quarter, with a gain of 10.7% to top $6.4 billion.
Combined medical surgical and neurotechnology net sales increased 11.1% for the year to $13.5 billion while the orthopedics division grew 8.9% to $9.1 billion.
The company also signed multiple acquisition deals last year, including the brain surgery devicemaker Nico Corporation, the smart hospital software developer care.ai, and Molli Surgical, with its breast surgery markers. Most recently, at the start of this year, Stryker inked a $4.9 billion purchase for Inari Medical and its blood-clot-busting devices.
This week Stryker also announced the retirement of its chief financial officer, Glenn Boehnlein, after 22 years with the company. Preston Wells, who currently serves as CFO for Stryker’s orthopedics group, is set to take over the role on April 1.