Stryker, J&J bet on medical tech uses of 3D printing

June 17, 2019

The largest 3D-printing factory in the world making medical implants is located near Cork, Ireland and works around the clock.

The two-year-old facility was built by Stryker Corp., (NYSE: SYK) the U.S.-based medical devices company and  is capable of producing hundreds of thousands of  hip and knee joints annually. A recent article in the Economist magazine noted that the plant has taken 3D printing to the next level.

First generation 3D printing was able to make one-off prototypes, but this generation, using Artificial Intelligence (AI) software and additive manufacturing can replicate the complex machining. It uses laser passes over titanium powder to melt the powder and make the device.

3D printing lays down an object layer by layer taking thousands of tiny photographic slices. They are combined to create a complete picture to build objects, including complex internal structures.

Stryker’s hip and knee joints have a porous surface that allows bone to grow through them, strengthening the joint over time.

Stryker was founded in 1941 in Michigan and is a Fortune 500 company with 2018 revenues of  US$13.6 billion. It makes a wide variety of medical implants used in joint replacement as well as surgical navigation systems.

Last August, Stryker enhanced its 3D presence paying US $1.3 billion for K2M, a medical supply company based in Virginia that uses 3D printing to make spinal supports used in surgery.

Johnson & Johnson Inc., another Fortune 500 company known for medical devices and consumer products such as Band-Aid and Neutrogena skin products, has also moved into 3D printing. J&J has a market capitalization of US $370 billion and 2018 revenues of  US $81.58 billion.

J&J has set up a 3D printing Center of Excellence at the University of Miami to train engineers in the uses of 3D printing. J&J is also collaborating with Trinity College Dublin  in a  3D bioprinting lab. The focus is on fabricating tissues and organs to imitate natural characteristics.

These are examples of initiatives which combine new technologies with artificial intelligence and the Internet of Things to create new solutions for healthcare.

Both Stryker and J&J are components of the Harvest Healthcare Leaders Income ETF (TSX:HHL, HHL.U). As of May 31, 2019, HHL held 20 of the largest global healthcare companies with an average market capitalization of CAD $155 billion. The holdings have an average dividend yield of 2.22% and a 5-year return on equity of 19.98%.

The management fee is 0.85% and the ETF is RRSP and TFSA eligible with a distribution paid monthly.

For more on Harvest Portfolio Group Inc. products, click here.

The views and/or opinions expressed in the blog are of a general nature and are for informational purposes only. Blog contents should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Investors should consult their investment advisor before making any investment decision.

You may also like…


For Information Purposes Only. Commissions, management fees and expenses all may be associated with investing in HARVEST Exchange Traded Funds (managed by Harvest Portfolios Group Inc.) Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Tax, investment and all other decisions should be made with guidance from a qualified professional.

Certain statements in the Harvest Blog are forward looking Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or  “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and have sufficient capital under management to effect their investment strategies, (ii) the investment strategies will produce the results intended by the portfolio managers, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the FLS contained herein are based upon what the portfolio manager believe to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS.

Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether as a result of new information, future events or otherwise.

Sign up to receive our monthly updates