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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 from 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 weigh on 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. We include a small amount of estimated robotic revenue in SNN’s knee number, which performed above 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, 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 doubt about that.”
Sources: Smith & Nephew; ORTHOWORLD estimates
ORTHOWORLD estimates Smith & Nephew (SNN) 1Q18 orthopaedic revenue of US $865.4MM, +4.7% from 1Q17.
ORTHOWORLD estimates for segment growth follow.
Q18
Q17
$ Change
% Change
Joint Reconstruction
$435.6 ...
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 from 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 weigh on 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. We include a small amount of estimated robotic revenue in SNN’s knee number, which performed above 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, 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 doubt about that.”
Sources: Smith & Nephew; ORTHOWORLD estimates
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
