Stryker’s Streamlining Efforts Expected to Boost 2025 Net Income

As Stryker Corporation (NYSE: SYK) continues to streamline operations to focus on high-growth areas, the medical device maker has agreed to sell its U.S. spinal implants business — part of its spine business — to Viscogliosi Brothers, a family-owned investment firm focused on the neuro-musculoskeletal sector. The deal, announced earlier this year, will create a new company called VB Spine, which will become a strategic partner to Stryker once the transaction closes. The sale is expected to be completed in the first half of 2025, subject to regulatory approval and customary closing conditions.

The divestment comes as Stryker’s spine business has struggled in recent years. Revenue from the unit, which accounted for 18% of the company’s orthopedics and spine segment, fell to just 8% by 2024. The deal is expected to sharpen Stryker’s focus on core areas while positioning VB Spine for targeted growth. Spine revenues are projected to decline -13% year-on-year in 2025 following the spinal implant divestiture but are expected to recover in subsequent years.

The move follows a string of acquisitions by Stryker as it seeks to consolidate its position in high-growth markets. Last year, the company acquired Nico Corporation, a brain surgery device maker; care.ai, a smart hospital software developer; and Molli Surgical, known for its breast surgery markers. In January, Stryker agreed to a $4.9 billion acquisition of Inari Medical, a specialist in blood-clot treatment devices. Analysts forecast Stryker’s revenue to grow +8% in 2025, with net income — which fell -5% last year — expected to rise +40%, driving diluted earnings per share from $7.80 in 2024 to $10.80 in 2025.