Stryker Stock Dives As Weight-Loss Drugs Continue To Haunt Its Beat And Raise

 Stryker (SYK) stock tumbled Friday after third-quarter sales of its hip and knee replacements came up short, stoking renewed worries weight-loss drugs are pressuring medtech companies.

Stryker sells hip and knee replacements — a common need for people with osteoarthritis. Arthritis can be related to being overweight or having obesity. Investors worry a new class of drugs, called GLP-1 agonists, could reduce obesity rates and thus cut down on the need for hip and knee replacements.

But this is an overly simplistic view, Evercore ISI analyst Vijay Kumar said in a report.

"Management does not see risks from GLP-1 as arthritis is a complex disease (makes sense, all chronic disease by definition have multifactorial risk factors)," he said. "The Street seems to be oversimplifying total addressable market shrinkage to one risk factor (obesity)."

https://www.investors.com/news/technology/stryker-stock-stryker-earnings-q3-2023/