USA – Stryker has acquired Nico Corporation, marking its fourth takeover in recent months in a strategic move that aims to strengthen Stryker’s offerings in minimally invasive technologies for brain tumor removal and stroke care.
Nico specializes in devices that facilitate brain navigation, visualization during surgery, and the removal of tumors and blood clots.
The products acquired from Nico will enhance Stryker’s neurocranial business, which reported an impressive organic sales growth of nearly 11% in the U.S. during the second quarter of 2024.
These innovations will be integrated into Stryker’s neurosurgical unit, identified as a key growth driver for the company moving into the fourth quarter of 2023.
While the financial terms of the deal have not been disclosed, it continues Stryker’s focus on expanding its product line through strategic acquisitions.
Stryker’s active acquisition strategy
Stryker’s CEO, Kevin Lobo, indicated a strong focus on smaller acquisitions and rapidly growing assets, describing the company’s deal pipeline as “very active.”
With the Nico acquisition, Stryker gains access to the Brainpath and Myriad products, which are instrumental in treating intracerebral hemorrhages.
This acquisition follows other notable purchases, including Artelon for soft tissue repair technology in June and Care.ai and Vertos Medical in August, both aimed at enhancing patient care and medical technology solutions.
This acquisition is set to enhance Stryker’s unique non-surgical solutions and expand its presence in ambulatory surgery centers, enabling physicians to offer minimally invasive procedures that help patients regain their quality of life.
On October 1, 2024, Stryker announced the completion of its acquisition of Vertos Medical, further solidifying its commitment to providing innovative interventional pain management solutions for chronic lower back pain caused by lumbar spinal stenosis.
Stryker has a history of significant acquisitions aimed at enhancing its product portfolio, including Mako Surgical in 2013 for US $1.3 billion.
Other notable acquisitions include Sage Products for US $2.8 billion in 2016, NOVADAQ for US $700 million in 2017, and Vocera Communications for US $3.1 billion in 2022.
Current guidelines and clinical insights
Current medical guidelines primarily endorse conventional surgery for clot removal in emergency situations due to insufficient evidence supporting improved outcomes from traditional methods.
While minimally invasive approaches have shown promise, some studies, including one by Johns Hopkins University, have indicated mixed results regarding their efficacy over extended periods.
Clinical trials suggest that these minimally invasive techniques offer superior outcomes compared to standard care methods.
In a study, patients who underwent minimally invasive surgery alongside guideline-based medical management exhibited better scores on disability assessments after 180 days.
Moreover, the 30-day mortality rate was significantly lower in the surgical group compared to those receiving only medical management.
Nico Corporation has secured funding of US $12.5 million in both 2018 and 2022 to support its research and development activities, reporting a revenue growth of 25% in 2021 and expecting similar trends for 2022.
Additionally, the company expanded its product line in March 2024 when the FDA cleared its Myriad Spectra Light Source, which enhances the visualization of tumors in the nervous system during surgical procedures.
