Stryker Corp.’s (NYSE:SYK) coffers look significantly thinner these days, after the company blew through about 71 percent of its cash and cash equivalents during the first half of 2011 on acquisitions.
The Kalamazoo, Mich.-based medical device maker, which started out 2011 with $1.76 billion in cash and cash equivalents now has just under $500 million in cash and cash equivalents, according to regulatory filings with the federal securities and exchange commission. Overall, Stryker has just over $6.5 billion in current assets, compared to the $7.63 billion it had on December 31, 2010.
Stryker spent more than 58 percent of its cash reserves during the first quarter on its $1.45 billion buyout of Boston Scientific’s (NYSE:BSX) neurovascular business. Overall, the company forked over about 12 percent of its total assets to do the deal, not including an additional $70 million it paid in charges related to the transaction.
A second deal in late May for Orthovita Inc. (NSDQ: VITA), a Malvern, Pa.-based orthopedic biologics maker, sucked up another $316 million. That deal closed on June 27, 2011, just before the end of the second quarter.
Stryker also signed up for another deal in Q2, when it agreed to pay $150 million in up-front cash for Bruz, France-based Memometal Technologies SA in early June. That deal includes another $12 million in milestone payments.
Stryker VP of strategy and investor relations Katherine Owen told analysts during a recent conference call with investors that the company will “continue to execute on our stated strategy of leveraging our balance sheet and cash flow to pursue M&A.”