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Stryker MAKO Purchase Could Preview Ortho’s Future

Market-leading orthopedic firms have mostly come up with incremental product updates in response to the growing tide of more technology-heavy upstarts. That is what makes Stryker’s $1.65 billion acquisition of MAKO Surgical stand out.

Stryker Corp.’s bid to acquire robotic surgical maker MAKO Surgical Corp. has the potential to disrupt the staid and predictable large joint industry where market share shifts between major suppliers typically can be measured in single-digits. But, with a $1.65 billion price tag, it also presents huge risks for the aggressively acquisitive Stryker.

What’s clear is Stryker sees MAKO’s RIO (Robotic arm Interactive Orthopedic) system as a difference-maker in an orthopedics industry that’s becoming increasingly focused on doing what was once seen as...

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