Key insights
- Stryker's Mako robotic system is gaining traction in ambulatory surgery centers (ASCs) due to surgeon demand and flexible contracts, shifting robotics from discretionary to necessary. This trend, coupled with increasing patient preference for robotic-assisted procedures, positions Stryker favorably. While reimbursement challenges persist, innovations in augmented reality and diversification into neuromodulation present further growth avenues for medical device
Investing.com - Stryker’s Mako robotic system has emerged as a leading platform for ambulatory surgery centers as robotics adoption shifted from discretionary to necessary, BTIG said Thursday following the Becker’s Healthcare Spine, Orthopedic, and Pain Management-Driven ASC conference in Chicago.
BTIG analyst Ryan Zimmerman maintained a Buy rating and $379 price target on Stryker (NYSE:SYK), citing Mako’s multi-service line capability as a key differentiator. The firm also maintained Buy ratings on Medtronic (NYSE:MDT) with a $90 target, Boston Scientific (NYSE:BSX) at $65, and Solventum (NYSE:SOLV) at $89, while keeping Neutral ratings on Zimmer Biomet (NYSE:ZBH) and Globus Medical (NASDAQ:GMED).
Flexible contract structures including volume-based agreements and walk-away clauses from companies like Stryker lowered financial risk barriers for ASCs. Younger surgeons increasingly treat robotic systems as a baseline requirement and patients actively seek robotic-assisted procedures, turning robotics into a competitive necessity and marketing tool for ASC operators, panelists said.
The reimbursement environment represents the most challenging period in 25 years, according to one spine surgeon at the conference. Insurers outsourcing adjudication to third-party contractors drove margin compression and increased demand for AI-powered coding and billing solutions. Medicare coverage cuts to nerve block usage in some procedures pushed providers to diversify into neuromodulation, creating potential growth opportunities across spinal-cord stimulation, peripheral nerve stimulation, deep-brain stimulation, sleep apnea, and pelvic health devices.
Augmented reality was cited as the preferred cost-effective enabling technology solution in spine and orthopedics ASCs, while robotics faced economic challenges due to high costs and limited incremental reimbursement. Key innovation catalysts include advances in augmented reality reducing reliance on pre-operative imaging, the expiration of BMP/infuse patents opening the biologics market, and growing momentum in total disc replacement.
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