Shares of leading medical device provider in the global orthopedics market, Stryker Corporation (SYK) reached new 52-week high of $75.60 in mid-day trading yesterday. Shares of the company closed at $75.35 on the same day, reflecting a strong one-year return of 34.2%.
SYK has a market cap of $28.3 billion. Average volume of shares traded over the last three months stood at approximately 1,324.4K.
Shares of Stryker Corporation were favorably affected by its announcement of acquiring Irvine, Calif.-based Patient Safety Technologies (PSTX) on Dec 31. Although the stock slipped on the following day, it picked up later and reached a new 52-week high yesterday.
SYK bought Patient Safety Technologies in order to utilize Patient Safety’s device to lessen the risk of surgical sponges being left in patients after surgery. The deal is locked at $120 million.
Stryker will pay $2.22 per share for Patient Safety, which reflects a fat 50% premium of its closing price on Dec 30. The deal is approved by the PSTX Board of Directors and is expected to close in the first quarter of 2014.
Last month, Stryker completed its acquisition of MAKO Surgical for $1.65 billion. The acquisition of MAKO allowed SYK to get hold of the latter’s advanced robotic arm technology known as Robotic Arm Interactive Orthopedic System, or RIO. The technology helps orthopedic surgeons in performing knee and hip joint replacement surgeries.
SYK believes MAKO’s robotic technology has long-term potential for human joint reconstruction. Secondly, the company can proceed with further implant development for MAKO’s technologies utilizing its R&D capabilities.
Currently, Stryker retains a Zacks Rank #4 (Sell). Some better-ranked stocks in the medical products industry include Cardiovascular Systems Inc. (CSII) and Cytosorbents Corporation (CTSO). Cardiovascular Systems has a Zacks Rank #1 (Strong Buy) while Cytosorbents has a Zacks Rank #2 (Buy).