2014 Annual Review
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An Exciting Year
Watch the CEO Video“I have my surgeon, Dr. Lewis; Toronto Hospital for Sick Children; and Stryker’s products, technology and physician technical support team to thank.”
Galina Gheihman
PATIENT INSPIRED TO PURSUE MEDICAL SCHOOL DREAM
Galina Gheihman was a young athletic girl from Toronto who enjoyed basketball, springboard diving, ballroom dancing and being an excellent student. Unfortunately, she developed spondylolisthesis, which is a displacement of one or more vertebral bodies out of the natural alignment of the spine.
Over time, Galina says, “What had been a dull, aching pain stretching across my lower back was soon joined by shooting, sharp nerve pain running down the backs of my legs and a tingling numbness in my calves.” This was no ordinary lower back pain.
Dr. Stephen Lewis of Toronto Hospital for Sick Children diagnosed Galina and performed a delicate surgical procedure using Stryker’s Xia 3 Spinal System, which features a buttress thread blocker that helps to eliminate cross-threading, prevents screw head splaying and helps ensure secure closure. With Dr. Lewis’ expertise and the Xia 3 Spinal System, Galina fully recovered from what had been a slow descent into pain and immobility and a halt to all of the activities she loved.
As she recuperated and regained her life, she flourished. In fact, today, inspired by her personal experience, Galina is a first-year medical student.
“It’s been a dream come true,” she says, “and I have my surgeon, Dr. Lewis; Toronto Hospital for Sick Children; and Stryker’s products, technology and physician technical support team to thank for it — not only for inspiring me to pursue medicine, but also for making it physically possible for me to do so.”
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2005
PRE-2006Active childhood — enjoyed basketball and springboard diving.
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2006
EARLY 2006First signs of pain.LATE 2006Chronic pain developed — affected ability to participate in activities.
- 2007
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2008
2008Sharp shooting pain and numbness. First appointment with Dr. Lewis.
- 2009
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2010
EARLY 2010Surgery performed using Xia 3 Spinal System.MID-2010Resumed activities; began hiking and camping.
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2011
2011Completed a 50-mile sea kayaking trip in Vancouver, British Columbia.
- 2012
- 2013
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2014
NOWA thriving and active medical student.
- 2015
STRYKER AT A GLANCE
Stryker is one of the world’s leading medical technology companies and together with our customers, we are driven to make healthcare better. The Company offers a diverse array of innovative medical technologies, including orthopaedics, medical and surgical, and neurotechnology & spine products to help people lead more active and more satisfying lives. Stryker products and services are available in over 100 countries around the world. For more information, please visit our website at www.stryker.com.
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INNOVATION AND ACQUISITIONS
We target our core markets and key adjacent markets to drive innovation and acquisitions. $614M spent on Research & Development in 2014, 6.3% of sales
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PEOPLE AND CULTURE
Stryker’s employees set high standards for themselves and one another. This desire to achieve, combined with hard work, has placed us among the most admired companies in the medical technology industry. 26,000+ employees worldwide at the end of 2014
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GROWTH AND GLOBALIZATION
75+ years of innovation have led to a broad and deep portfolio of 60,000+ products and services, sold in over 100 countries worldwide 60,000+ products and services, sold in over 100 countries worldwide
6,000
6,000 TOTAL KNEE REPLACEMENT PROCEDURES…
AND COUNTING
Around the globe, we have loyal customers who use Stryker products, including Dr. Tadashi Kikuchi of Bange Kosei Hospital in Japan. In January 2015 he performed his 6,000th total knee replacement (TKR). What made it possible for Dr. Kikuchi to perform so many TKRs? First, there’s his drive and commitment to constantly improve his skills, and then there’s his patient-first philosophy. But his strong working relationship with his sales representative, Toshikazu Shimazu, also plays a major role. As a sales partner, Shimazu-san understands Dr. Kikuchi’s philosophy. The relationship between Dr. Kikuchi and Shimazu-san is a model of success as we work together with our customers to make healthcare better.
SURGICOUNT SAFETY-SPONGE SYSTEM IS DESIGNED TO REDUCE MISTAKES
Hospitals strive to eliminate the possibility of mistakes in the operating room (O.R.) to meet the industry’s continuing demand for quality and safety, while also reducing malpractice costs and payment penalties. This is where the Stryker SurgiCount Safety-Sponge System comes in — a clinically proven approach to eliminating one of the most common yet preventable medical errors — foreign objects remaining inside a patient after surgery. The System, added to our Instruments portfolio through the Patient Safety Technologies acquisition, provides real-time counts in the O.R., as well as an auditable, postoperative documentation system. “With SurgiCount, there is a specific ID for each sponge. And that allows you to completely rectify what went into the surgical field and what came off,” says Jeffrey Ashford, MSN, RN, CNOR, Director of Surgery at Ochsner Medical Center, in Louisiana. In fact, with 376 customer hospitals at the end of 2014, the Safety-Sponge System is used in more hospitals than all other sponge technologies combined.
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Sponges are scanned before procedure begins.
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Sponges are scanned as they’re removed.
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SurgiCount System properly flags all missing sponges and averts patient harm.
"Using this system for the past two years has provided relief for the entire surgical team and eliminated this preventable and devastating event."
Jeffrey Pearl, MD, Professor of Clinical Surgery, Vice-Chair, Department of Surgery, Fishbon Chair of Ambulatory Surgery, Associate Dean, Associate Chief Medical Officer, UCSF at Mount Zion
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Item 1
Patented SealShut Technology provides effortless protection
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Item 2
Built-in smoke evacuator
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Item 3
Reservoirs and fluid volume accuracy for every procedure
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Item 4
Hands-free docking, emptying and routine cleaning
COMMITTED TO O.R. SAFETY
In late 2013 Stryker announced the FDA’s post-recall 510(k) clearance of the Neptune 2 Waste Management System, which reflected usability testing and feedback from more than 1,000 customers. The Neptune System combines the demonstrated performance that customers expect and enhanced features and functionality that support best O.R. practices. Stryker’s ability to overcome the challenge of a product recall so successfully is due to the fierce determination of the Neptune team and customer loyalty. Our commitment to the surgical waste management market as well as to patient and caregiver safety has never been stronger.
M&A STRENGTHENS KEY MARKET SEGMENTS
Stryker’s approach to mergers and acquisitions is based on a disciplined strategy that keeps the Company focused on our three key market segments — Orthopaedics, MedSurg and Neurotechnology & Spine. Through such acquisitions, we target our core markets and key adjacent markets to drive innovation, improve operations and accelerate growth.
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2009
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OtisMed
OtisMed Corporation – November 10, 2009 -
Ascent
Ascent Healthcare Solutions, Inc. December 31, 2009
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2010
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Sonopet
Sonopet Ultrasonic Aspirator – March 31, 2010 -
Gaymar
Gaymar – October 1, 2010 -
Porex
Porex Surgical – October 29, 2010
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2011
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Neurovascular
Neurovascular – January 3, 2011 -
Orthovita
Orthovita – June 28, 2011 -
Memometal
Memometal – July 6, 2011 -
Concentric
Concentric Medical – October 3, 2011
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2012
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Surpass
Surpass Medical, Ltd. – November 1, 2012
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2013
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Trauson
Trauson Holdings Company Limited – March 1, 2013 -
MAKO
MAKO Surgical Corp. – December 17, 2013
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2014
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Pivot
Pivot Medical, Inc. – March 7, 2014 -
Berchtold
Berchtold Holding AG – April 15, 2014 -
Patient Safety
Patient Safety Technologies, Inc. – March 24, 2014 -
Small Bone Innovations
Small Bone Innovations – August 1, 2014 -
CoAlign
CoAlign – March 30, 2014
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- Core Business
- Adjacency
CULTURE OF SERVICE AND ACCOUNTABILITY
Surgeon Craig Cranford, DPM, in Denison, Texas, and Bernie Diamond, a Foot & Ankle sales representative for the Dallas area, continue to build on their relationship. “I’ve known him since he was a resident,” explains Bernie, who consistently provides Dr. Cranford and his staff with information on studies, Stryker products and continuing medical education opportunities.
Bernie’s work ethic and knowledge of procedures has strengthened the relationship with Dr. Cranford and has proven to be a win for both the surgeon and his patients. In early 2015 Bernie plans to introduce and offer medical education on Small Bone Innovations’ STAR Ankle, a Stryker acquisition in 2014. “We’re committed to making sure surgeons are educated about the latest tools to help them improve the lives of their patients,” says Bernie.
POWER-LOAD REDUCES TRAUMA INJURIES
The Power-LOAD cot fastener system lifts and lowers cots into and out of ambulances. As a result, it reduces spinal loads and the risk of cumulative injuries to operators, while improving patient safety. Case in point: The EMS team of the Norman Health System of central Oklahoma, which responds to 16,000 calls per year, experienced three cot lifting back injuries from 2012 to 2013. The next year, after implementing the Power-LOAD system and the Power-PRO XT cot, the team decreased its back injuries to zero.
CREATING FLEXIBLE FINANCING OPTIONS
Stryker Flex Financial combines strategic financial consulting with innovative and flexible payment solutions to make it easier for customers to purchase Stryker products. With customized payment options and competitive rates, customers can upgrade or acquire Stryker equipment easily, reducing the risk of obsolescence and inefficiency while stabilizing operating costs. For Stryker, providing these customized programs helps to strengthen customer loyalty.
After Stryker acquired MAKO Surgical Corp. in late 2013, Flex Financial made it possible for Lafayette General Health Systems, based in southern Louisiana, to acquire pioneering robotic-arm assisted surgery technology that simplifies joint reconstruction. Flex Financial was able to secure a lower rate than a bank and offer competitive terms and conditions to Lafayette General for this purchase. “We were able to help them acquire the equipment they needed, while still meeting their financial goals,” says James Cress, Vice President and General Manager for the Flex Financial business. “We have the flexibility to customize programs to create an optimal solution for customers.”
STRYKER’S NEW EUROPEAN REGIONAL HEADQUARTERS
After evaluating a range of operating models, Stryker implemented a Transatlantic Operating Model in 2015, aligning our businesses in Europe and the U.S. The goal is to build on the success of the European team, accelerate growth through greater product line focus, and build global leadership capabilities. To support the strategy around the Transatlantic Operating Model, and to ensure that internal resources and teams are aligned with customer needs, Stryker established a European Regional Headquarters in 2014. Based in Amsterdam, this hub was designed to increase communication and collaboration and help the Company achieve greater operational efficiencies. “The Regional Headquarters is the next logical step to continue fueling Stryker’s growth in Europe and to bring the best of Stryker to our customers,” says Xavier Berling, President, Europe.
Amsterdam,
The Netherlands
A SECOND CHANCE AT LIFE
In 2013 after struggling with an incorrect cancer diagnosis and unnecessary radiation therapy that damaged her jaw and left her face disfigured, Lessya Kotelevskaya came to Louisville, Kentucky, from Kazakhstan. Dr. Jarrod Little, a renowned plastic and reconstructive surgeon with University of Louisville Physicians, agreed to help pro bono. After a long preparatory process, Dr. Little reconstructed her face and jaw in a procedure that lasted over 24 hours. A key product used in the surgery was Stryker’s Customized Mandible Reconstruction Plate (CMRP), which is used in atypical and challenging cases. Based on a patient’s anatomical data and the surgeon’s analysis, the Customized Mandible Reconstruction Plate can be designed specifically for each patient — right down to the number and position of its screw holes. It’s also manufactured according to the planned patient outcome, which eliminates the need for intraoperative adaptation. Released from the hospital this past July, Lessya continues to do well and is excited to begin a new stage of her life.
ENGAGED EMPLOYEES MAKE HEALTHCARE BETTER
Stryker employees come to work every day to make healthcare better. They are the reason why our Company is a great place to work and why we have earned outstanding customer loyalty. Third-party recognition, such as LinkedIn’s Most InDemand Employers, Gallup’s Great Workplace Award (which we have won seven times), our 2015 #19 ranking on FORTUNE Magazine’s 100 Best Companies to Work For list, and Great Place to Work awards in other countries, are notable evidence of our engaging workplace culture. Additional evidence includes our employees’ individual achievements, such as the 2014 Gallup Great Manager Award won by Jerry Rudzinski, senior area director of sales, which celebrates a manager who consistently performs in the 90th percentile or above in employee engagement measurements, shows high levels of performance and maintains high employee retention levels.
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LinkedIn
#22
Most inDemand Employers -
FORTUNE MAGAZINE’S
#19
100 BEST COMPANIES
TO WORK FOR LIST
TAKING RESPONSIBILITY
Our business is built on making long-term contributions, in a responsible way, to our customers and their patients, to our employees, to our communities and to our shareholders.
PROVIDING REGULATORY TRAINING IN CHINA
In 2014 Jiangsu Food and Drug Administration (JSFDA) and Trauson agreed to jointly develop the JSFDA Education Training Center, a site providing regulatory and quality assurance training to JSFDA officials in Jiangsu Province. The first training session took place in December for 21 regulatory officials. Yingnian Wu, the team leader of the Jiangsu Provincial Discipline Inspection Commission, called Trauson a pioneering enterprise in the Chinese orthopaedic industry with its high standard of quality control and said Trauson has laid a solid foundation for the future success of the training center. Trauson signed a five-year agreement with JSFDA, reinforcing its commitment to assist JSFDA in promoting the sound development of the medical device industry in Jiangsu Province.
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10.5M
Stryker helped hospitals divert over 10.5 million pounds of medical waste from landfills in 2014. That’s an increase of 1.6 million pounds over 2013.
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$258M
Sustainability Solutions helped customers save a record-setting $258 million in supply expenses.
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$1.0B
During the past 20 years Stryker’s customers have collectively eliminated an estimated 35 million pounds of waste and reduced more than $1 billion in supply costs.
STRYKER MOBILITY ZONE PROMOTES JOINT HEALTH EDUCATION
Stryker Orthopaedics’ business and the PGA TOUR formed a relationship in 2014 that designated Stryker’s products as the “Official Joint Replacement Products of the PGA TOUR and Champions Tour.” The agreement advanced Stryker’s commitment to educating golf fans about joint health by enhancing the fan experience at tournaments with its premier on-site joint health destination, the Stryker Mobility Zone. At this exhibit, orthopaedic surgeons educate attendees about hip and knee treatment options and about how Stryker’s products may help them regain their mobility and return to their everyday activities.
The Stryker Mobility Zone appeared at key PGA TOUR and Champions Tour events across the U.S. “We enjoyed a great response from golf fans across the country who were really interested in learning more about their joint pain and treatment options. We’re excited to continue the momentum and bring the Stryker Mobility Zone to PGA TOUR and Champions Tour events in 2015,” said Bill Huffnagle, President of Stryker’s Reconstructive Division.
