A Medical Device Daily

The Israeli business news publication Globes has reported that Stryker (Kalamazoo, Michigan) is moving to close part of its endoscopy business, an Israeli company it acquired for $50 million in 2006.

Globes said on its web site that Stryker is shutting down SightLine Technologies (Haifa, Israel) and firing 71 employees who were developing flexible scopes used for colonoscopies and other procedures.

J. Patrick Anderson, vice president of corporate affairs for Stryker, told the Kalamazoo Gazette that the company has made no public statements regarding SightLine or its operations in Israel. He would neither confirm nor deny that Stryker is closing the business and laying off workers.

The Gazette's report noted that most of Stryker's endoscopy business is in rigid scopes, which are primarily used in orthopedic procedures. It has been a growing component of the company's business, Stryker officials have said. In the third quarter, Stryker reported that endoscopy sales had grown by 11% over the previous year.

Stryker purchased SightLine in 2006 to enter the market for flexible surgical scopes, which are used in gastrointestinal procedures such as colonoscopies.

The story noted that in a company news release issued at the time of the SightLine acquisition, Stryker said, "This acquisition allows us to apply our core competencies in visualization technology and sales and marketing to the flexible endoscopy market."

At that time, Stryker said it was paying $50 million up-front to SightLine and had agreed to pay an additional $90 million "upon the achievement of certain operational and financial targets related to SightLine's products, the first of which is not expected to occur before 2007."