Stryker Corporation (NYSE:SYK) Q4 2022 Earnings Call Transcript

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The beauty of our approach is it’s the same robot that’s being used for hips and knees that’s going to be used and we have, as you know, thousands of them now out there. So that is exciting that we will be able to just do a software upgrade and have a different attachment and be able to use the same robot and I think a lot of hospitals will be excited about that if the robots not being used on one day of the week and they can have that being used for spine initially and then as the demand increases, then they can have a dedicated robot for spine. So we really believe that will be different than when we started where each robot had to sort of justify it on its own. Having one sort of robot with all these different applications will be powerful over time.

But we feel confident just based on we spent a lot of money, and we spent a lot of time on this. The shoulder one took a little longer. As you recall, we were — we thought that was initially going to be before spine, but we decided to move away from our implants to the Tornier implants and to use the BLUEPRINT planning software. So that caused a slight delay. But the teams are really working well and we are — the feedback we are getting from surgeons that are seeing it is extremely positive.

Ryan Zimmerman: Great. Looking forward to it. Thank you for taking my questions.

Kevin Lobo: Yeah. We are too.

Operator: Thank you. The next question comes from Vik Chopra with Wells Fargo. Your line is open.

Vik Chopra: Hi. Thanks for taking the question. This is Vik on for Larry Biegelsen. Kevin, you talked about a super cycle of new products. Just remind us sort of what they are and how we should think about their impact in 2023. And my second question is, maybe just a comment on your trend in China, sort of what are you seeing there and maybe just the impact on Neurovascular, any color you could provide would be helpful? Thank you.

Kevin Lobo: Okay. There’s a few questions in there. So I will do the super cycle and then I will pass it to Jason for China. On the super cycle, so System 9, our new power tool and Instruments launched just at the end of last year. So we are going to see the first real year of impact here in 2023, initial feedback, extremely positive. We know how to do these. As you know, we have — from System 6 to 7 to 8 to now 9. So that’s one of the flagship product. We have the 78 camera in Endoscopy that will be initially launched in Q2. We will probably see more of a pickup in Q3, Q4, but a fabulous new camera, which, as you know, we have done in the past, whether it’s 14, 15, 88, 68. So these are things we know how to do and these are fabulous products.

We have Neptune S, which is a small footprint Neptune product designed really for GI that is terrific new market for us. So we — today Neptune’s are not really being used in GI. It’s designed special purpose for that to catch the polyps. Nurses are going to absolutely love this. We actually believe it could increase the procedures that they can do in a day, which, of course, the GI teams are going to love. So that’s also another really powerful product that we are excited about. Towards the end of the year and won’t have a big impact in 2023, but certainly much more in 2024 is going to be a new defibrillator. It will be in 2023 outside the United States and then early in 2024 inside the United States, which is the big pre-hospital expensive, complex life pack defibrillator.

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