Investing.com -- Stryker Corp. shares dropped as much as 7.7% on Tuesday morning after company executives discussed ongoing problems in its peripheral vascular and joint replacement operations at an industry conference.

The company presented at the Wells Fargo Healthcare Conference, where Chief Financial Officer Preston Wells addressed issues affecting the business.

Wells explained that a manufacturing problem continues to prevent the company from maintaining full inventory supply to customers. The issue also limits the company’s ability to pursue new business opportunities. The company had expected to resolve this problem in the third quarter.

"What we’re seeing is that is continuing into the third quarter. We expect it to continue a little bit into the fourth quarter as well," Wells said.

The joint replacement business also faces difficulties. The company saw strong performance in June and expected continued recovery during the summer months. The business instead experienced more typical seasonal patterns, which resulted in weaker performance than anticipated.

"But what we actually are seeing is a bit more of the seasonality than we would typically see. With that seasonality, we actually did not see the recovery that we expected so far in the quarter, although we are anticipating to have a better September," Wells said.

Shares of peer Zimmer Biomet, another medical technology company, also fell declined.