Healthcare Industry News: joint replacement
News Release - January 3, 2006
Stryker Announces Acquisition of PlasmaSol Corporation and Completion of Cash RepatriationKALAMAZOO, Mich., Jan. 3 (HSMN NewsFeed) -- Stryker Corporation (NYSE: SYK ) announced that on December 30, 2005, it acquired, by merger, all of the outstanding stock of PlasmaSol Corporation, a private, development stage company. PlasmaSol has developed a technology which should allow Stryker to provide sterilization equipment for use in sterilizing certain of its MedSurg Equipment products. The cost of the transaction totals approximately $17.5 million, including an up-front cash payment plus the assumption of certain liabilities.
The transaction will result in an estimated fourth quarter 2005 after-tax charge of $16 million, or $.04 per diluted share, reflecting the write-off of in-process research and development costs.
The Company also indicated that it has completed the previously announced repatriation of $722 million of undistributed foreign earnings under the provisions of the American Jobs Creation Act of 2004. The Company recorded a charge of $31.3 million, or $.08 per diluted share, in the third quarter of 2005 to recognize the estimated income tax expense and related liability in the United States associated with the planned repatriation. After completing the repatriation, the Company anticipates its actual income tax expense and related liability will approximate $27.4 million or $.07 per diluted share. As a result, the previously recorded income tax expense is expected to be reduced by approximately $3.9 million or $.01 per diluted share in the fourth quarter of 2005.
Stryker Corporation is one of the world's leading medical device companies with the most broadly-based range of products in orthopaedics and a significant presence in other medical specialties. The Company's products include implants that are used in joint replacement, trauma, craniomaxillofacial and spine surgeries; orthobiologics; operating room and interventional pain products; surgical navigation, endoscopic, communications and imaging systems: as well as patient handling and emergency medical equipment. Stryker also provides outpatient physical therapy services in the United States. The Company's website address is http://www.stryker.com .
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