What's Happening?
Executives from Stryker and Johnson & Johnson have expressed their readiness to pursue mergers and acquisitions (M&A) in the medtech sector, despite a generally slow market this year. At the AdvaMed MedTech Conference, Stryker CEO Kevin Lobo emphasized the importance of M&A as a strategic tool for growth, noting that the company has 22 business units actively seeking deals. Stryker has been a significant player in the industry, completing seven acquisitions in 2024 and purchasing Inari Medical for nearly $5 billion in 2025. Johnson & Johnson has also been active, spending over $30 billion on medtech acquisitions since 2022, including major deals for Abiomed and Shockwave Medical. J&J's worldwide chairman of medtech, Tim Schmid, highlighted the company's openness to both large and small acquisitions, focusing on unmet patient needs and growth opportunities.
Why It's Important?
The readiness of Stryker and Johnson & Johnson to engage in M&A activities is significant for the medtech industry, which has been experiencing a slowdown due to macroeconomic factors like high interest rates and tariff uncertainties. Their willingness to invest in acquisitions could stimulate market activity and drive innovation in medical technology. This approach may benefit patients by accelerating the development and availability of new treatments and technologies. Additionally, the focus on unmet patient needs and growth markets suggests a strategic shift towards addressing critical healthcare challenges, potentially leading to improved patient outcomes and expanded market reach for these companies.
What's Next?
As Stryker and Johnson & Johnson continue to explore M&A opportunities, the industry may see increased competition for high-growth targets. Both companies are likely to focus on acquisitions that align with their strategic goals and offer potential for significant growth. The ongoing tariff uncertainties may continue to impact financial projections, but executives from both companies have expressed confidence in navigating these challenges. Future deals may involve cultural assessments to ensure alignment between companies, aiming for mutually beneficial outcomes. The medtech sector could witness a resurgence in dealmaking activity as these industry leaders pursue strategic acquisitions.
