Stryker Corporation has enhanced its portfolio by acquiring Nico Corporation, marking its fourth takeover in recent months. This acquisition brings into Stryker’s fold Nico’s advanced minimally invasive solutions geared toward brain tumor removal and stroke care. Nico has developed an array of devices designed for navigating and visualizing the brain, excising tumors and clots, and collecting tissue samples. One of its significant milestones was obtaining clearance in 2012 for a device that allows for visualization of the surgical field during brain surgeries. Since then, Nico has broadened its product offerings.
By incorporating Nico’s devices into its operations, Stryker aims to bolster its neurocranial business, which already demonstrated a nearly 11% organic sales growth in the U.S. during the second quarter. The newly acquired devices will be integrated into a neurosurgical unit within Stryker, which the company identifies as a key growth driver for the fourth quarter of 2023. The financial details of the Nico acquisition were not released by Stryker.
Under the leadership of CEO Kevin Lobo, Stryker has been actively enhancing its business through strategic acquisitions. During an earnings call in July, Lobo highlighted the company’s active deal pipeline with a focus on smaller, fast-growing assets. The acquisition of Nico is in line with this strategy and follows a series of recent acquisitions by Stryker. These include the purchase of Artelon, recognized for its soft tissue repair technologies in June; and Care.ai, specializing in patient monitoring, along with Vertos Medical, known for its back pain solutions, both acquired in August.
A key aspect of Nico’s attractiveness as an acquisition target is its innovative Brainpath and Myriad products. These are pivotal in the treatment of intracerebral hemorrhages and have been proven in clinical trials to enhance outcomes in minimally invasive clot removal over traditional methods. In a highlighted study, patients receiving minimally invasive surgery coupled with guideline-based medical management exhibited better disability outcomes after 180 days compared to those who only received medical management. Moreover, the 30-day mortality rates were notably lower in the surgery group.
It’s important to note that the current medical guidelines recommend conventional brain surgery primarily as a lifesaving measure, acknowledging the mixed results from randomized trials regarding the efficacy in improving outcomes. However, minimally invasive techniques like those offered by Nico have shown promise, even though some studies, such as one conducted by Johns Hopkins University, have not demonstrated significant impacts.
Financially, Nico has been on an upward trajectory. The company secured $12.5 million in financing both in 2018 and again in 2022, funds that were used to support its clinical studies and other operational activities. Notably, in 2021, Nico reported a 25% increase in revenues and projected a continuance of this growth rate into 2022. This financial growth and product success undoubtedly contributed to Stryker’s decision to acquire Nico.
Adding to its suite of offerings, Nico introduced a new product in March when the FDA cleared its Myriad Spectra Light Source for use in the U.S. This accessory for the Myriad system enhances surgical visualization of suspected tumors in the nervous system. This capability supports surgeons by providing enhanced visibility during complex procedures, thereby positioning Stryker to potentially improve surgical outcomes and reduce risks associated with neurosurgical operations.
Through these acquisitions, Stryker not only widens its technological frontier but also strengthens its potential for growth in the medical devices sector, particularly in neurosurgery and critical care. By strategically integrating Nico’s products and technologies, Stryker is poised to drive forward its mission of offering more effective, minimally invasive medical procedures, which could transform patient care in neurology.
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