30 Day Trial

BARE BONES content is posted to these pages in real time.

Monthly compilations are available in PDF form.

Product / Company Performance

Smith & Nephew Posts 6% Growth in Knees for 1Q18 -

ORTHOWORLD estimates Smith & Nephew (SNN) 1Q18 orthopaedic revenue of US $865.4MM, +4.7% from 1Q17.

ORTHOWORLD estimates for segment growth follow.

  1Q18  1Q17  $ Change  % Change 
 Joint Reconstruction $435.6  $417.0  $18.6  4.5% 
   Hip $155.0  $152.0  $3.0  2.0% 
   Knee $267.4  $251.9  $15.5  6.1% 
   Extremities  $13.2  $13.1  $0.1  0.8% 
 Trauma $107.8  $106.9  $19.0  6.3% 
 Arthroscopy/Soft Tissue $322.0  $303.0  $38.5  4.7% 
 Total  $865.4  $826.9  $38.5  4.7% 

In his last earnings call as CEO, Mr. Olivier Bohuon urged listeners to focus less on a company-wide soft quarter for SNN and more on a stronger Smith & Nephew after the last seven years: a modernized organization, a move to individual silos to an efficient, agile group. When asked if he had regrets holding on to the orthopaedics business (vs. selling and investing proceeds elsewhere), he reminded us that the company has outperformed the market in knees for quite some time.

In orthopaedic segments, the REGENETEN Bioinductive implant—acquired with Rotation Medical—contributed strong growth in Sports Medicine Joint Repair, though competition in resection and RF technology continue to affect Arthroscopic Enabling Technologies.

Trauma was affected by the annualization of the INTERTAN evidence campaign launch, as well as sluggish trends in external fixation and lower levels of elective procedures. Growth is expected to improve in 2H18, following launch of the EVOS SMALL plate.

Robotics also continued with good growth. I’ll remind us that we include a small amount of estimated robotic revenue in knees, which performed just ahead of mid-single-digit growth. When asked whether robotics was responsible for the dynamics in knee growth, Mr. Bohuon responded, “Not really. I think the knee is doing pretty well by itself. But we, as I said in Q4, know that everywhere we have a robot, we have a stronger dynamic with our knee business, for sure.”

The number of surgeons trained on NAVIO in 1Q was up sequentially, though, to the tune of 70% growth. Over 500 surgeons were trained on the system in 2017. “It is mobile, it is cheaper, it is efficient, it has a lot of potential development,” Bohuon reminded us. “When I see the reaction of our customers, I’m extremely optimistic about the future of this product and the impact of this robot on the dynamic of our reconstruction business. There’s no double about that.”

Sources: Smith & Nephew; ORTHOWORLD estimates

This article is a Member-only item of content. Members, please log in to read the complete post.
If you are not yet a Member, click here to learn more about purchasing ORTHOWORLD Membership.