Stryker is facing a slowdown in joint replacement procedures, which CEO Kevin Lobo attributed to a broader market deceleration.
The company reported fewer hip and knee procedures in the third quarter than expected, with knee sales growing 1.1% in the quarter compared with the year-ago period and hip sales decreasing by 1%.
“Beginning with hips and knees, it is now clear that there is a market slowdown,” Lobo said in a Thursday earnings call. “In the U.S., we are seeing slower procedural growth amid affordability concerns from higher insurance premiums and deductibles.”
CFO Preston Wells first flagged the slower sales at an event last month. While Stryker has grappled with a cyberattack this year and a new software implementation within its orthopedics business, Lobo attributed the numbers to a slow market and economic challenges.
The company hasn’t lost business in hips and knees to the competition, Lobo said, but patients are delaying the procedures due to insurance costs and pre-authorization denials.
“There are patients that today are having trouble being able to make their deductible because their deductibles are higher,” Lobo said. “They’re actually living with pain a little bit longer than they would like to.”
By Elise Reuter | MEDTECH DIVE
Image Credit: Getty Images
Be the first to comment