Stryker 2009 Annual Review

We have abundant opportunities. The forces that are reshaping the global healthcare landscape today are in our favor: the need for expansion into emerging markets like China and India; the need for cost containment among hospitals; the need for evidence-based medicine among payors; and the ever-present need for innovation and new solutions among healthcare professionals throughout the world. Healthcare reform initiatives in the U.S., while still unresolved, hold opportunities for our business, as they will undoubtedly require us to meet the needs of our customers in new and creative ways.

In every one of our current businesses, we have sufficient scale to compete effectively and room to gain market share. For instance, we are now the world’s largest orthopaedic company, yet no single franchise has a leading share. With 39% of sales in the MedSurg market, 38% in reconstructive implants and 23% in spine, trauma and CMF implants, we are balanced across the medical technology space. And we have a broad geographic footprint that allows us to drive sales globally and expand our presence in developing markets. All of these factors allow us to be excited and optimistic—but never overconfident—about the years ahead.

Before I close, I want to thank my colleague and mentor John Brown, who retired this year as chairman of the Board. John began at Stryker in 1977 as president and chief executive officer, and oversaw 32 years of the company’s growth. Under John’s leadership, we grew from a $17 million company to become one of the premier medical technology companies in the world. His impact on our company cannot be overstated. The Stryker we know today took shape under his leadership, and I am grateful to have benefited from his wisdom over the past seven years and proud to extend his legacy into the future. Following such a legend is of course a tremendous challenge, but John’s support has helped me grow immensely during this time.

After a challenging 2009, I think I speak for all of our employees when I say that it feels good to go on offense again, to make strategic moves that position us to gain ground and to win. We plan to use our talent and resources to transform our competitive abilities for the benefit of the caregivers we serve and their patients, as well as for our shareholders. Our team approaches 2010 mindful of our challenges and enthusiastic about our opportunities. We look forward to reporting to you on our progress.

Sincerely,
Stephen P. MacMillan
Chairman, President and Chief Executive Officer