Stryker to repatriate $2B, ready for acquisitions in 2H15 (FierceMedicalDevices)
Links... earnings report and the transcript
Stryker ($SYK) took an earnings hit during the third quarter, in part to repatriate $2 billion in cash for acquisitions and to establish an EU regional headquarters in Amsterdam, where it has moved some intellectual property. The IP transfer is expected to reduce its effective tax rate from an expected 22% in 2014 to 20% next year.
The orthopedics giant reported net earnings per share of $0.16, a 41% decline from the same quarter a year prior. It attributed the decline not only to a tax rate of about 5% on the $2 billion to be repatriated and the EU headquarters, but also to currency exchange, charges related to product recalls as well as to acquisition and restructuring-related charges.
It had $4.7 billion in cash and $4 billion in debt at the end of the third quarter.
As more physicians join Integrated Delivery Networks (IDNs), Integrated Health Networks (IHNs), Accountable Care Organizations (ACOs), and other organized healthcare systems, the door is quickly closing on some of the pharmaceutical industry's longstanding commercial and engagement str...
