New ASCs are key opportunities for Stryker's orthopedic growth, CEO Kevin Lobo said in a July 30 second quarter earnings call.
"If there is a big renovation or new construction, we do extremely well. I don't want to speak on behalf of all ASCs," Mr. Lobo said, as transcribed by Seeking Alpha. "If it's already an ASC, that's an orthopedic ASC, and there's entrenched surgeons that are using competitive products, that's a little harder for us to displace. But if they're doing a big renovation or if they're doing new construction, we have a fantastic offense that wins at very high rates. That's been one of the engines that's caused this tremendous growth for us in the ASC and why we continue to believe that that's the area where we're going to be laser focused. That's the area where we are winning today, and that's the area we're going to continue to win in the future."
Stryker's orthopedic and spine sales grew 7.9% year-over-year with $2.3 billion in sales, according to second quarter financial results posted July 30. But one potential barrier lies in how often new ASCs are being built, Mr. Lobo said.
"The rate limiting factor is just being able to construct these ASCs and obviously have the financing and the capital and the ownership structure sorted out between the hospital and the surgeons," Mr. Lobo said. "But I just see this continuing to grow and I don't really see sort of where this stops. It's just going to keep growing."