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  "documentTitle": "Stryker Corp. (SYK)",
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  "authorName": "Ben Axler",
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      "kind": "callout",
      "text": "Stryker paid $370m upfront for an acquisition with just $3m and $7m of accounts receivable and inventory, respectively. Based on a JPMorgan report, we estimate Stryker paid almost 12x NTM sales. There is also evidence that Stryker made milestone payments to Mobius and Cardan well in advance of “regulatory” milestones being achieved. In fact, within one quarter after announcing the acquisition, the deal structure changed to an asset purchase, and only $4m of the $130m of contingent consideration was marked in the valuation. We find no FDA records of any regulatory actions with respect to Mobius or Cardan Robotics. A former employee told us there were significant deal challenges.",
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      "text": "Stryker paid $370m upfront for an acquisition with just $3m and $7m of accounts receivable and inventory, respectively.",
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      "text": "Q3 2019 and Year End 2019 excerpts from 10-Q/10-K filings describing the acquisition.",
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      "text": "In October 2019 we completed the acquisition of Mobius Imaging and Cardan Robotics for cash consideration of approximately $370 and future development and commercial milestones of up to $130. — Q3 2019 10-Q",
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      "text": "Source: Q3 2019 10-Q / 2019 10-K",
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      "text": "Purchase Price Allocation of Acquired Net Assets table showing Mobius and OrthoSpace assets, liabilities, and goodwill.",
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      "kind": "title",
      "text": "Shady Mobius And Cardan Robotics Accounting",
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