Stryker Plan to Expand in China Troubling After Estimate of $390M to Deal With Hip Recall, Rottenstein Law Group Notes
(PRWEB) January 17, 2013
The Rottenstein Law Group, which represents clients with claims stemming from the failures of defective hip replacement devices manufactured and sold by various companies—including Stryker Corp—is curious about Stryker’s plan to purchase a Hong Kong company in order to expand operations in China.
According to a Reuters report, Stryker Corp will pay $764 million to acquire Trauson Holdings Co Ltd, a Chinese company founded in 1986. Trauson makes spine devices and products for trauma surgeries. The Hong Kong-based company had sales of about $60 million in 2011. China is viewed as one of the fastest-growing markets for orthopedic products.
The acquisition announcement comes soon after an announcement that the company estimates the recall of two of the company’s Rejuvenate and ABG II hip implant devices that began last June “will cost $190 million to $390 million for patient testing and treatment, new surgeries, lawsuits and insurance payments.”