Smith & Nephew Reports 1Q17 Revenue

ORTHOWORLD estimates Smith & Nephew 1Q17 orthopaedic revenue of US $826.9MM, +3.0% from 1Q16.

ORTHOWORLD estimates 1Q17 segment sales and growth on an as-reported basis, as follows.

1Q17 performance highlights:

• Joint Recon driven by continued high demand for JOURNEY II total knee; investments in REDAPT revision hip and POLARSTEM cementless stem are expected to increasingly contribute to growth throughout the year
• Full market launch of JOURNEY II, LEGION and GENESIS II total knees slated for 2Q17
• NAVIO for total knee well-received at AAOS preview; have more indications under development
• “NAVIO offers advantages to our customers. It is very portable and cost effective and therefore, highly attractive both in the hospital and the ASC. It does not require a CT scan, therefore saving time and cost.”—Olivier Bohuon, Chief Executive Officer
• JOURNEY II XR Bi-cruciate Retaining Knee receiving excellent feedback in limited launch
• AR/ST supported by demand for shoulder repair and newer products (e.g. ULTRABUTTON), countered by continued softness/competitive pressure in mechanical resection; expecting increase in contribution of LENS visualization and WEREWOLF COBLATION systems throughout 2017
• Trauma revenue supported by TRIGEN INTERTAN hip fracture system, supported by annualization of reduced tender activity in Gulf states

Sources: Smith & Nephew plc; ORTHOWORLD estimates

An ORTHOWORLD Observation

Our 2016 estimates place Smith & Nephew at #4 in overall orthopaedic market share; its full-year ortho revenue of $3.2BB was just over half that of #3 player, Stryker, and $320MM more than #5 player, Medtronic.

Smith & Nephew also holds the #4 spot in Joint Reconstruction and Trauma, and is #2 for Arthroscopy/Soft Tissue Repair, where it trailed Arthrex by about $320MM in 2016.