Smith & Nephew Posts 2Q16 Revenue
ORTHOWORLD estimates Smith & Nephew (SNN) 2Q16 orthopaedic revenue of US $824.8MM, +4.3% from 2Q15. Growth is as reported.
ORTHOWORLD estimates 2Q16 segment sales and growth on an as-reported basis, as follows.
- Joint Reconstruction $411.9MM, +6.6%
- Hips $153.0MM, flat
- Knees $245.8MM, +11.2% (Includes ORTHOWORLD estimate of $7.8MM in Blue Belt revenue, which SNN reports separately)
- Extremities $13.1MM, +4.7%
- Trauma $105.9MM, -5.9%
- Arthroscopy/Soft Tissue Repair $307.0MM, +5.1%
Joint Reconstruction led by high demand for JOURNEY II total knee. The company has added a monolithic stem to its REDAPT revision femoral system, and noted that the 3D-printed titanium REDAPT revision acetabular cup, launched in 1Q, is well-received.
In mid-2Q, SNN received FDA 510(k) clearance of the total knee application for NAVIO surgical assistance. Leadership noted that ~80% of knee replacement procedures address total knee, vs. fewer than 10% for partial knee replacement—supporting the potential for increased system utilization. The first total knee surgical case was performed at the end of July.
Growth in AR/ST was driven by shoulder repair portfolio and Coblation technology. Within 2Q, SNN launched the ULTRABUTTON Adjustable Fixation device for knee repair, the next-gen version of ENDOBUTTON.
At the 2-year anniversary of its ArthroCare acquisition, SNN remains on track to realize $50MM in sales synergies from the deal by the end of 2017.