Stryker's (SYK) New Camera Platform to Improve Surgery Outcomes
Stryker Corporation SYK recently unveiled the next generation of minimally-invasive surgical cameras, the 1788 platform. The fully-enhanced camera is expected to advance surgery outcomes across multiple specialties.
The 1788 platform is compatible with the currently-marketed imaging agents and adaptable to new agents and fluorescence modes as they become available.
The latest camera platform is expected to provide a significant boost to Stryker’s Endoscopy business unit of the broader MedSurg and Neurotechnology segment.
Significance of the Availability
The all-in-one surgical camera platform will likely offer a livelier image with balanced lighting, a wider color range and clearer delineation of fluorescence signals. Per Stryker, the platform, designed for improved visualization of blood flow and critical anatomy, is expected to have the ability to visualize multiple optical imaging agents at times when it matters most.
Per medical personnel familiar with the camera platform, dependable imaging is one of the most critical factors during surgical outcomes. With the enhanced imaging capabilities of the 1788, surgeons will likely have a complete surgical camera technology that provides consistent and vivid imaging.
Per management, the 1788 platform is expected to be a powerful tool in the operating room to enhance the surgical experience across specialties. Management also believes that the early positive feedback for the 1788 camera is especially helpful in deep or highly complex cases when surgeons are working in tight cavities, such as sinus cases and pituitary resections.
Industry Prospects
Per a report by MarketsandMarkets, the global medical cameras market was estimated at $2.9 billion in 2021 and is anticipated to reach $4.1 billion by 2026 at a CAGR of 7.3%. Factors like the increasing number of surgical procedures and the changing surgical patterns are expected to drive the market.
Given the market potential, the latest availability is expected to strengthen Stryker’s position in the niche space globally.
Notable Development
Last month, Stryker reported its second-quarter 2023 results, wherein it registered a solid uptick in its net sales (both reported and organic) and bottom line. The MedSurg and Neurotechnology segment also recorded a robust revenue increase in the quarter, both on a reported basis and at constant currency. Organic net sales in the quarter were also strong and included contributions from increased unit volume and higher prices.
Price Performance
Shares of the company have gained 33.6% in the past year against the industry’s 2.6% decline. The S&P 500 has witnessed 16.7% growth in the said time frame.
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Zacks Rank & Other Key Picks
Currently, Stryker carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are DaVita Inc. DVA, HealthEquity, Inc. HQY and Integer Holdings Corporation ITGR.
DaVita, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita has gained 6% against the industry’s 8.1% decline over the past year.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 23.5%. HQY’s earnings surpassed estimates in all the trailing four quarters, with an average of 13%.
HealthEquity has lost 4.4% compared with the industry’s 10.8% decline over the past year.
Integer Holdings, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Integer Holdings has gained 30.8% against the industry’s 0.4% decline over the past year.
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