KALAMAZOO, Mich., March 20, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Stryker Corporation
(NYSE: SYK) announced today that is has acquired all of the outstanding stock
of Sightline Technologies Ltd. (Sightline), a private development stage
company based in Haifa, Israel. Terms of the transaction include an upfront
payment of $50 million in cash plus the assumption of certain liabilities.
Stryker has also agreed to make milestone payments of up to an additional $90
million upon the achievement of certain operational and financial targets
related to Sightline's products, the first of which is not expected to occur
before 2007. Sightline, a developer of flexible endoscopes for the
gastrointestinal (GI) and other markets, has developed a technology that
should improve insertion and sterilization during colonoscopy procedures.
The transaction will result in an estimated first quarter 2006 after-tax
charge of approximately $53 million, or $0.13 per diluted share, reflecting
the write-off of in-process research and development costs. Excluding the
write-off of in-process research and development costs, Stryker reaffirms its
adjusted diluted net earnings per share guidance of $2.02 for the year ended
December 31, 2006, despite anticipated additional spending to further develop
the Sightline products in 2006.
"Stryker is a leader in the rigid endoscopy market. This acquisition
allows us to apply our core competencies in visualization technology and sales
and marketing to the flexible endoscopy market. Additionally, Sightline will
potentially open up new markets for our Communications and Video Accessories
businesses," stated Bill Enquist, President of Stryker Global Endoscopy.
Avi Levy, Chief Executive Officer of Sightline, stated that "Stryker is
dedicated to providing world-class care to patients. With Sightline's
products, Stryker will continue to set the bar for innovative products by
bringing new, patient-friendly technology to the GI marketplace backed by the
Stryker name and service reputation."
Stryker Corporation is one of the world's leading medical technology
companies with the most broadly based range of products in orthopaedics and a
significant presence in other medical specialties. Stryker works with
respected medical professionals to help people lead more active and more
satisfying lives. The Company's products include implants used in joint
replacement, trauma, craniomaxillofacial and spinal surgeries; biologics;
surgical, neurologic, ear, nose & throat and interventional pain equipment;
endoscopic, surgical navigation, communications and digital imaging systems;
as well as patient handling and emergency medical equipment. Stryker also
provides outpatient physical therapy services in the United States.
Dean H. Bergy
Vice President and Chief Financial Officer
Stryker Corporation
+1-269-385-2600