Interesting article today :
Stryker distinguishes itself relative to both its peers and all publicly traded companies. Its earnings rank, according to Investor's Business Daily, is 96 (out of 100). This means that Stryker's three-year earnings growth rate of 26% is better than 96% of the IBD 6000 (an index of 6,000 publicly traded companies). The company is anticipated to grow earnings by 21% in 2004 and 20% in 2005. Its revenue growth, gross margins, and operating margins all exceed industry averages. Stryker also has cash equal to three times its debt.
All of this translates into superior returns for shareholders. Over the past year, shares have climbed from a low of $62.95 to recent near-$90 levels.
So much attention has been given to the new coated stents and the battle for market share between Johnson & Johnson (NYSE: JNJ), Guidant (NYSE: GDT), Boston Scientific (NYSE: BSX), and Medtronic (NYSE: MDT), that a "nuts and bolts" company like Stryker is often overlooked. This could be a mistake.
Finally, there's the possibility that Stryker could become an acquisition target. Many companies in the medical industry are struggling, with some of the most recognizable names in health care putting up growth rates in the single digits. I am not saying that Stryker is for sale or that a potential merger is a reason for giving this company consideration. However, what would a company with a market cap of about $18 billion, little debt, and a projected earnings growth rate of 20% be worth to a larger company struggling to grow? Just thinking about it might make joint replacement a little sexier.
i hope you know i was being sarcastic. with the franchise you have built, i know it would be very difficult to leave. for an ortho rep to stay sane, they need help with call. i hope you are getting that. i am almost positive you currently work for syk. and as a stockholder, i hope it stays that way. by the way, i could take you resume but you know how management is about switching divisions. it rarely happens at the field rep level. you ought to get into management and start collect those share options.
-If you go to the revision,he changes out the insert ONLY!If you don`t go,you end up being paged with a 911 because its now a full blown revision and they have no idea which instrument is used first,so you end up going anyway.
-Wife goes with the kids why you cover the case because your one dedicated mother.
-commission helps pay for wife and kids activities,and you make quota!
So, let me guess; You made a deal with the Ortho Tech for the Sat surgery(soon will be investigated), made your trauma calls on Friday, played kissy face make up with the wife Fiday night, skied with the kids on Sat and slept all day sunday! And then they called you out of bed for a 2am trauma case Monday morn-wife is still grumbling because you woke both her and the kids up.
Great Insight Gamma,
Revision knee just cancelled-
- Reason: cardiologist won�t clear the patient for surgery
- Sterile processing spent all night wrapping the trays
- O.R. supervisor wants to keep instruments till reschedule on Friday
- Must return instruments for another case, different hospital.
- O.R. supervisor wants to charge me for SPD time.
- I have three scheduled sales calls on Friday (to sell trauma)
- Cancel sales calls, but wait, now revision may go Saturday
- Ortho tech not there Friday or Saturday
- Surgeon may just change out insert, what if I don�t go?
- Wife wants to go spring skiing Saturday, with kids
- Bribe ortho tech to come in either day (Advamed?).
- I�ve got to go to this case, or do I?
- Have to meet quota, explain to wife.
- Wife says @#%#*& your #@*^ing quota.
Thanks for helping me understand the engine of this biz....sales!
Every answer seems to bring up more questions. You mentioned you are a new rep..then state 4 years. In some places you would be a wizened old pro!
How do brand new reps make a living if it takes 4-5 years to gain a docs trust? It must be fairly expensive to train and nuture a new rep....especially if there is any type of salary in the mix. What does mgt. offer to keep as many of these reps as possible? Is turnover a huge problem or not really? Is SYK able to get seasoned reps from other cos.?
I liked the quote I read earlier....good people don't leave good cos., they leave bad mngt. How true!
Thanks again, all you guys have been very enlightening!
Trauma is part of the total bag. I am a newer rep to styker. (4years) If it was not for trauma I would not have the new business in recon. A Dr. is not easily switched from one joint to another, but trauma he will try.
I prove myself on the trauma side and after a while he gives me a shot. I have been working a Dr. for 3 years, he uses my nails. He has one cut out and gives me a shot for the Hip revision.
Without trauma I could not grow my overall business. Orthopaedics is a relationship sale. It takes years to build it up. Dr.'s really have to trust you before they give you a shot. Face it, I screw up, it affects the patient and the Dr.
Trauma, if done right becomes a annuity for the rep. You train the staff, get the Dr's comfortable on the product, get it in stock at a Hospital and then you move on the the next Hospital. You still answer the call for help. But how often does a Dr. call for help to do a hip screw?
Howmedica started the cannulated screw business, they pioneered the nail business and the exfix. The problem is they left it wither. Now the see the big picture, get the trauma business and you can get the rest of the business.
There are a lot of factors why reps try to be at every case, especially recon cases. The surgeons will have questions that need to be answered and the staff always needs help. If you're not there they will look for someone else. And that's the bottom line: There is always another company/rep more then willing to take your place in a heartbeat.
As far as trauma call, a past post(s) is right on the money. Commission is the same for trauma and recon. Trauma is anytime day or night, recon is scheduled. Which would you like to do. Stryker has recent a problem though and it is becoming a major headache for upper level management. In the past reps at Stryker had 4 product areas that they needed to make quota on to get their annual bonus on: Recon, UER (upper extremity recon), Cement, and Trauma. In 2003 Greg Rainey, VP of Ortho Sales changed that. Reps no longer needed to hit 4 separate quotas. They just needed to hit one overall number. Also the reps initial commission rate was dropped a point and a half. Their bonus was bumped significantly though.
So what happens now?
The first 3 (Recon, UER and Cement) are all basically recon: Scheduled M-F usually in the AM and easy to cover. Trauma on the other hand is 24/7. Management thought that by doing this reps would have more time to sell the new ceramic hip, which of course they did. But Trauma has suffered significantly, and now they are playing catch-up. I mean what rep in their right mind would sell trauma now? An IM nail bills out at $1250-2000 in the middle of the night, maybe! A ceramic hip: $4-6K Subsequently, trauma is way off, all over the country and Rainey, is reeling due to his poor decision and failure to fix this BIG problem. And this will affect recon sales: If you�re a surgeon and your rep isn�t showing up for trauma anymore, he WILL begin to look else ware.