Stryker recently announced the sale of its U.S. spine implant business to investment firm Viscogliosi Brothers, the company will name the new company VB Spine.

The world's second-largest orthopedic device company also announced the retirement of its chief financial officer, reported fourth-quarter and full-year operating results, and provided an outlook for the coming year.

Expected to be completed in the first half of 2025, the transaction also includes a binding offer for the French spinal implant business, "subject to necessary consultations with employees and/or employee representatives."

Stryker, headquartered in Portage, Michigan, said it also plans to sell its spine implant business in other international markets.

Stryker CEO and Chairman Kevin Lobo stated, "We believe that the spinal implant business, with its comprehensive portfolio and robust sales channels, will thrive as an independent company." "With dedicated resources and a focused strategy, as part of the Viscogliosi brothers, this enterprise will be fully equipped for success."

Stryker's U.S. Spine Implants business and VB Spine will continue to operate as independent entities until the transaction is completed, at which point VB Spine will have control over Stryker's Mako Spine and Copilot.Exclusive Access, for VB Spine implants used in spinal surgery.

Financial terms were not disclosed. Stryker said that the deal "will strengthen Stryker and VB Spine's focus to meet the needs of customers and their patients, and is expected to achieve faster growth, providing greater value for all stakeholders."

Lobo said on the investor call, "We've been looking at this market for a long time, and we've been working to improve our spine business." "We're excited about the enabling technologies of Copilot and Mako Spine, but fundamentally, we have better opportunities to invest our dollars elsewhere."

Earlier this month, Stryker announced the definitive agreement to acquire Inari Medical for approximately $4.9 billion. The company stated that it expects the transaction to be completed by the end of February.

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Marc, John, and Anthony Viscogliosi co-founded Viscogliosi Brothers, headquartered in New York City, in 1999. In the press release, they stated that they "have long admired Stryker's comprehensive spine portfolio, incredible talent, and strong culture."

They said: "We see a huge opportunity to provide the focus, surgeon-centric innovation, and commercial execution needed to grow the business and further impact patient lives and outcomes."

Viscogliosi Brothers stated that it focuses on "identifying and building breakthrough innovations in the healthcare field, aiming to address unmet clinical needs, improve patient outcomes, and enhance the cost-effectiveness of healthcare systems."

The family office stated that it has transformed the spine industry business, including Spine Solutions, Spine Next, Paradigm Spine, Simplify Medical, Centinel Spine, Peer Spine, Spine Biopharma, and Woven Orthopedic Technologies.

Stryker's Chief Financial Officer Is Retiring

Stryker also announced that Vice President and Chief Financial Officer Glenn Boehnlein, who has worked at the orthopedics company for 22 years, will retire. He will be succeeded by Preston Wells, the Chief Financial Officer of Stryker's Orthopaedics Group, on April 1.

Lobo said in a press release: "I want to thank Glenn for his performance-driven approach, strong business partnerships, and excellent leadership of the finance and IT organizations." "Glenn is a growth champion who invests in talent development, including Preston Wells. ... I believe Preston has the ability to help Stryker continue to achieve strong results."

Wells previously led the investor relations, corporate financial planning and analysis, as well as the sales finance and sales operations teams supporting Stryker's Spine business.

Stryker's 2024 Performance and 2025 Outlook

Stryker Reports Fourth Quarter (Ended December 31, 2024) Sales of $6.4 Billion, Up 11% Year-over-Year

Quarterly profit was $546 million, a 53% decrease from the last quarter of 2023.This equals earnings per share (EPS) of $1.43, or adjusted earnings per share of $4.01.

Analysts expect adjusted earnings of $3.87 per share and revenue of $6.36 billion.

Full-year 2024 sales were $22.6 billion, an increase of 10% over the previous year. Net income for 2024 was $3 billion, a decrease of 5% compared to 2023.

Lobo stated, "We have once again achieved double-digit organic sales growth for the year, while continuing to expand our adjusted operating margin and driving growth in adjusted earnings per share." "We have also launched numerous products and actively participated in mergers and acquisitions to further enhance our position in high-growth end markets. I want to thank our team for their hard work in achieving outstanding results and ensuring Stryker's continued success in 2025 and beyond."

Stryker expects organic net sales to grow between 8% and 9% in 2025, with adjusted earnings per share ranging from $13.45 to $13.70, "based on our momentum exiting 2024, sustained procedural volumes, strong demand for capital products, and our presence in healthy end markets."