Stock Profile: Stryker Corporation

A number of factors, from an aging population to evolving technology, are driving growth in the orthopaedic healthcare market. As a leading company in the global medical technology sector, Stryker Corporation is poised to meet this growth with a strong focus on innovation and sustainability in product design. Stryker offers products in two key segments: Orthopaedics and Spine, and MedSurg and Neurotechnology. 

Stryker’s Orthopaedics and Spine segment focuses on joint replacement implants for hip, knee, and shoulder, and trauma-related products. Products in its MedSurg and Neurotechnology segment include surgical instruments, endoscopic systems, emergency medical devices, and reprocessed medical products. 

Current Snapshot: A Leading Provider of Robotic Systems

The Mako robotic orthopaedic system, first FDA-approved for knee applications in 2015, has been a key growth driver for Stryker. With more than 1,000 Mako systems installed at healthcare facilities around the world, Stryker is the leading provider of robotic orthopaedic systems. Stryker was the leader in robotic-assisted knee and hip surgeries at the end of 2024, with nearly two-thirds of U.S. knee procedures and a third of hip surgeries utilizing Mako. Use of the Mako system is spreading internationally, where Stryker had a 45% share of knee procedures and 20% of hip surgeries.

Stryker benefits from loyalty among surgeons, who often stick with preferred vendors due to the learning curve associated with different instrumentation systems and concerns about how the change could affect efficiency or clinical outcomes. Research indicates that surgeons continue using the same vendor for 95% of their procedures over 15 years — a contributing factor to stable market share.

This loyalty is reinforced by the long-term relationships surgeons develop with Stryker’s sales representatives, who provide essential support during procedures. The sales representatives are integral to each procedure, ensuring correct tool use and preparation. 

Beyond orthopaedics, Stryker maintains a competitive edge through its intellectual property portfolio, which features about 5,800 patents. The company’s financial resources and ability to enforce patents put it in a strong position to protect its market share.

Social and Environmental Impact Review

As may be expected from a medical device company, Clean Yield’s screening process uncovered a series of legal cases involving product failures, including a recall of its toe implant device. The company also has a history of cases and fines related to bribery and improper interaction with international doctors and officials. While these issues are worth keeping an eye on, there is evidence that the company has improved its actions over time.

And, by driving healthcare innovation and environmental sustainability, Stryker is helping to shape more responsible and impactful healthcare systems around the world. 

Environmental Impact: Stryker is expanding its focus on sustainability in product design and provider practices, taking aim at single-use devices. Through its medical device reprocessing program, Stryker has helped clients divert more than 5 million pounds of waste from the landfill. As a next step, Stryker launched its Redesigned for Sustainability program in 2020 to apply a lifecycle approach to bringing new products to market. The program incorporates sustainable design into sourcing, packaging, component design, materials and chemicals, as well as manufacturing and waste solutions. 

Stryker has also set a goal to become carbon neutral for scope 1 and 2 emissions from its facilities by 2030. The company is transitioning to renewable energy, with 45% of facilities powered by renewables at the end of 2023 — progress toward its goal of powering all facilities with renewable energy sources by 2027.

Social Impact: As a medical technology manufacturer, Stryker performs legal animal testing – one of the potential exclusions in Clean Yield’s screening process. Stryker has adopted the 3Rs framework for more humane animal research through replacement, reduction, and refinement. Its policy is to use animal testing “only when other scientific or regulatory alternatives are not available or possible.” Because of these and other guardrails, the company does not violate Clean Yield’s Screens on animal testing and animal abuse.

Stryker’s investments in medical technologies for developing economies and other underserved markets help increase access to critical healthcare services, particularly in orthopaedics and trauma care.

By enhancing healthcare effectiveness and improving the efficiency and safety of surgeries, Stryker products help lower the economic burden on healthcare systems and patients.

Its focus on advancing treatment options for chronic conditions, such as joint degeneration, supports long-term health outcomes for aging populations and contributes to improved societal well-being.

These efforts to improve product sustainability and contribute to positive social impact indicate that Stryker has more than a toehold on progress, and room for continued improvement.

Learn more about Stryker.