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  "documentTitle": "Stryker Corp. (SYK)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2022-04-06 00:00:00",
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  "notes": "Uses a red flag icon to signal a warning/contradiction. Includes a table of investing activities and two specific callouts for external sources.",
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      "kind": "callout",
      "text": "Did Stryker Receive Just $1 Million For A Faulty Product Suite?",
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      "kind": "callout",
      "text": "We observe that Stryker has not impaired any of the $221 million of goodwill associated with a product set that it likely knew was experiencing breakage issues, and which it received little to no value from divesting.",
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      "kind": "framework",
      "text": "Exposing the discrepancy between divestiture proceeds and goodwill impairment",
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      "kind": "paragraph",
      "text": "Stryker agreed to sell STAR ankle as part of the Wright Medical acquisition. It was sold to Colfax (NYSE: CFX), which publicly closed the asset divestiture in Q4 2020. We observe that Stryker reported no cash inflows from investing from this divestiture. At most it received $1 million through “Other Investing”. Later in March 2021, the FDA issued a warning about the STAR Ankle’s safety. We observe that Stryker has not impaired any of the $221 million of goodwill associated with a product set that it likely knew was experiencing breakage issues, and which it received little to no value from divesting.",
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      "kind": "quote",
      "text": "Risk of Device Component Breaking in Patients with Stryker’s STAR Ankle: FDA Safety Communication",
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      "kind": "quote",
      "text": "\"The U.S. Federal Trade Commission voted to approve the transaction on November 3, 2020, and the UK Competition and Markets Authority approved the transaction earlier today. In connection with obtaining the required regulatory approvals for the transaction, as previously announced, Stryker has agreed to divest its STAR ankle replacement product and related assets and finger joint replacement products.\" — Stryker Press Release, Nov 4, 2020. \"Page 12 introduces one of the acquisitions that we completed in the fourth quarter. We acquired the STAR ankle business from Stryker\" — Colfax JPM Conf, Jan 14, 2021. \"(FDA) is advising patients, caregivers, and health care providers about the higher than expected risk of the polyethylene (plastic) component of the device breaking (fracture), as early as three to four years after implantation in all Scandinavian Total Ankle Replacement devices\" — FDA, March 15, 2021.",
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      "text": "Investing activities table showing 2018-2020 cash flows",
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      "text": "No Cash From Divesting A Problematic Product Set, And No Goodwill Impairment",
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