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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": "Highlights the contradiction between the CEO's optimistic narrative and the underlying performance metrics.",
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      "text": "Stryker talked a big game in its deal to acquire K2M Group to bolster its spine business. The CEO said it expected mid-single digit performance going forward.",
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      "text": "Stryker talked a big game in its deal to acquire K2M Group to bolster its spine business. The CEO said it expected mid-single digit performance going forward.",
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      "text": "Kevin, I had a question on K2M. You're doubling down on Spine with the K2 acquisition. Is this a signal that you feel more optimistic about the outlook for the Spine market and now was the right time to do the deal? Or was this more signal that Spine is strategic, synergistic with orthopaedic and neuro, and you just need it to get bigger.",
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      "text": "Sure. Thanks for the question. I think we've -- I've been for pretty consistent with the past 3 or 4 years in how important and committed Stryker was to the Spine market. It is very synergistic with both the Neurotechnology as well as orthopaedic, and we're seeing that with a terrific performance of our Tritanium product, which is 3D-printed technology that we also use in Orthopaedics. And so this has been a market we are very committed to. The timing just worked very well for us right now. We've got our Spine business starting to perform better. K2M has really developed stronger and stronger performance with their new product launches. So the timing just came together right now.... And so I'm very optimistic about the 2 organizations merging very well and performing very well. But there really hasn't been a change strategically. It's always been important. I think I've said that over and over again. The market, it's nice to see that the market is stabilizing and hopefully will start to improve. But this is a deal that makes sense for us. It will really improve our growth trajectory in our Spine business. And it just felt like a good time to do it, and we're very excited about it.",
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      "text": "But overall, there is strength everywhere. Really the one business that hasn't been performing as well for us in the past has been Spine. Now with the K2M acquisition, I think that story changes dramatically starting in 2020. In 2019, we won't report K2M within our organic sales, but what we will provide each quarter are pro forma results. So you can see what the combined business is doing.. We expect mid-single-digit performance on a pro forma basis. And then obviously, in 2020, that'll then roll into organic. So we're really excited with the speed of that integration and being able to post these numbers with a Spine business that's been essentially flat for the past 5 years is pretty remarkable.",
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      "text": "\"The timing just worked very well for us right now. K2M has really developed stronger and stronger performance with their new product launches. So the timing just came together right now.... And so I'm very optimistic about the 2 organizations merging very well and performing very well.\" — Stryker CEO Lobo, Q3 2018 Conf Call. \"We expect mid-single-digit performance on a pro forma basis. And then obviously, in 2020, that'll then roll into organic. So we're really excited with the speed of that integration and being able to post these numbers with a Spine business that's been essentially flat for the past 5 years is pretty remarkable.\" — Stryker CEO Lobo, Q4 2018 Conf Call.",
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      "text": "CEO Lobo On The K2M Acquisition",
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