Stryker has agreed to sell its US spinal implants business to the Viscogliosi Brothers. The newly formed company will be known as VB Spine. The move is expected to enable its major competitors to strengthen their positions in the spinal fusion market.
Stryker occupies a relatively small portion of the US spinal fusion market, making up 9.1%, and has experienced relatively slow growth since its first introduction. Major players such as Medtronic and Globus Medical cover 37.5% and 23.9% respectively. While Stryker does not cover a large section of the market, companies such as Globus Medical and Medtronic can be expected to use this opportunity to grow their influence towards what was previously Stryker’s section of the space. The US spinal fusion market was worth an estimated $5.7 billion in 2024 and is expected to reach $6.7 billion in 2034 with a compound annual growth rate of 1.64%, according to GlobalData, a leading data and analytics company.
This decision appears to be the logical next step when considering Stryker’s less-than-ideal performance in this market, and in the long term may prove beneficial for Stryker as the company continues to focus on interventional spine products. Stryker’s competitors in this space may look to expand their coverage of the market, which could pose challenges for VB Spine going forward.
The market is expected to continue growing due to increasing incidences of spinal disorders, in combination with advancements in surgical navigation and imaging technologies that allow for better surgical precision and better patient outcomes. The potential patient pool for these types of procedures is also likely to increase because of the ageing population. The limiting factor to this growth is the high cost of treatment; however, as advancements continue in the field, that may become less of a barrier. As the spinal fusion market continues to expand, Stryker’s latest sale of the US spinal implants business poses a significant growth opportunity for the other major players, and we may see moves from those companies as they attempt to strengthen their positions.
