A key focus of the WCM Quality Global Growth portfolio is to find quality global companies with durable, strengthening economic moats and corporate cultures aligned to this growth. An example of a company that demonstrates these characteristics is Stryker.
Stryker is a leading medical technologies company that provides innovative products and services that help improve hospital and patient outcomes. Stryker products include surgical and emergency equipment, implants used in joint replacement surgeries, neurosurgical and spinal devices, as well as other medical device products in a variety of specialties.
In this video Brian Huerta, Client Portfolio Manager of WCM Investment Management (WCM) goes into depth about Stryker’s crown jewel, the orthopaedic division, and how the business continually strives to make healthcare better with its robot system, Mako.
Tom Hickey (TH): Hello and welcome to this ‘Stock in Focus’ update with WCM Investment Management. Today, I’m joined by Brian Huerta from WCM, thanks for joining us, Brian.
Brian Huerta (BH): Thanks for having me, Tom.
TH: Today we’re talking about a company called Stryker. Can you tell us a bit about what the company does, Brian?
BH: Stryker is a US-based medical device company that is supplying equipment and services to hospitals, surgery centres and surgeons to help them perform their surgeries. The real crown jewel in the business is its orthopaedic division. Stryker have spent millions of dollars in the last several years making robots to help surgeons with surgery.
We think it’s going to benefit from a couple of different things. One is the aging demographic globally, but also people’s interest to remain active in their later years and well through retirement. We think Stryker is well positioned to benefit from that.
TH: How did Stryker do when elective surgeries were halted during the pandemic?
BH: We think it’s just a matter of ‘when’ not ‘if’ someone is going to need a hip or knee replacement. We’re thinking like a long-term investor because we believe that these elective surgeries will come back.
TH: What’s the competitive advantage like at Stryker?
BH: Stryker has an excellent history and reputation. It has global and product breadth, but what’s most important is its history of innovation. It is the undisputed leader in innovation, specifically around orthopaedics. Stryker also has a robot system called Mako, which is enables hospitals to get better economics on surgeries and the surgeon to be more precise and have better outcomes for its patients.
TH: What’s the culture like within Stryker?
BH: This is probably one of the most commercially minded Salesforce that we know. Stryker is able to attract some of the best people within the industry and hold these people accountable. Stryker is very good at what it does. It has spent years developing relationships with surgery centres and surgeons and now able to deliver the best products and understand what those surgeons and hospitals need. Stryker can provide more products for its customers due to that proximity to its client. Having years of relationship development really gives Stryker’s culture a real advantage versus its competitors.
TH: Thank you so much, Brian.
BH: Thank you, Tom.
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