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Continued strength in sports medicine and above-market growth in knees and hips before currency headwinds brought modest growth to Smith & Nephew in 2Q19.
- Knee sales were driven by the JOURNEY II and LEGION Revision knee systems, with the ex-US rollout of the JOURNEY II generating positive results
- Hip sales increased in the low single digits before currency headwinds, driven by the POLAR3 Total hip system and the REDAPT revision hip
- The company received positive outcomes data for their OXINIUM bearing surface, with a 9.88% reduction in post-acute 90-day episode of care average cost
- Trauma saw continued demand for the EVOS system, and within the quarter the company launched the CONQUEST FN system to treat femoral neck factures
- Sports medicine sales grew on strong U.S. sales of shoulder products, but was offset somewhat by continued softness in resection products
- Launched NAVIO 7.0 in July, reducing the number of steps in the current workflow by 40%
- Closed the acquisition of the Brainlab Orthopedic Joint Reconstruction business
- Announced the acquisition of Atracsys to integrate the fusionTrack 500 optical tracking camera into Smith & Nephew’s next-generation robotics platform
- The company is committed to investment through both R&D and acquisitions by leveraging their strong balance sheet
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement | $447.1 | $443.0 | $4.1 | 0.9% |
| Knees | $278.0 | $274.0 | $4.0 | 1.5% |
| Hips | $156.0 | $156.0 | $0.0 | 0.0% |
| Extremities | $13.1 | $13.0 | $0.1 | 0.9% |
| Trauma | $104.9 | $105.0 | -$0.1 | -0.1% |
| Sports Medicine | $340.0 | $330.0 | $10.0 | 3.0% |
| Total | $892.0 | $878.0 | $14.0 | 1.6% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement | $887.1 | $882.7 | $4.3 | 0.5% |
| Knees | $553.0 | $546.0 | $7.0 | 1.3% |
| Hips | $308.0 | $311.0 | -$3.0 | -1.0% |
| Extremities | $26.1 | $25.7 | $0.3 | 1.3% |
| Trauma | $210.9 | $209.3 | $1.7 | 0.8% |
| Sports Medicine | $673.0 | $657.0 | $16.0 | 2.4% |
| Total | $1,771.0 | $1,749.0 | $22.0 | 1.3% |
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| Geographic Region | 2Q19 | 2Q18 | $ Chg | % Chg |
| US | $421.5 | $400.1 | $21.4 | 5.4% |
| Ex-US | $470.5 | $477.9 | -$7.4 | -1.6% |
| Total | $892.0 | $878.0 | $14.0 | 1.6% |
Net Earnings Data
Net earnings are as follows, inclusive of all Smith & Nephew revenue.
| Amt | % of Sales | |
| Sales | $2,485.0 | |
| Cost of Sales | -$648.0 | 26.1% |
| R & D | -$139.0 | 5.6% |
| Selling and Admin | -$1,279.0 | 51.5% |
| Other | -$110.0 | 4.4% |
| Net Earnings | $309.0 | 12.4% |
Sources: Smith & Nephew; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Continued strength in sports medicine and above-market growth in knees and hips before currency headwinds brought modest growth to Smith & Nephew in 2Q19.
Knee sales were driven by the JOURNEY II and LEGION Revision knee systems, with the ex-US rollout of the JOURNEY II generating positive results
Hip sales increased in...
Continued strength in sports medicine and above-market growth in knees and hips before currency headwinds brought modest growth to Smith & Nephew in 2Q19.
- Knee sales were driven by the JOURNEY II and LEGION Revision knee systems, with the ex-US rollout of the JOURNEY II generating positive results
- Hip sales increased in the low single digits before currency headwinds, driven by the POLAR3 Total hip system and the REDAPT revision hip
- The company received positive outcomes data for their OXINIUM bearing surface, with a 9.88% reduction in post-acute 90-day episode of care average cost
- Trauma saw continued demand for the EVOS system, and within the quarter the company launched the CONQUEST FN system to treat femoral neck factures
- Sports medicine sales grew on strong U.S. sales of shoulder products, but was offset somewhat by continued softness in resection products
- Launched NAVIO 7.0 in July, reducing the number of steps in the current workflow by 40%
- Closed the acquisition of the Brainlab Orthopedic Joint Reconstruction business
- Announced the acquisition of Atracsys to integrate the fusionTrack 500 optical tracking camera into Smith & Nephew’s next-generation robotics platform
- The company is committed to investment through both R&D and acquisitions by leveraging their strong balance sheet
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement | $447.1 | $443.0 | $4.1 | 0.9% |
| Knees | $278.0 | $274.0 | $4.0 | 1.5% |
| Hips | $156.0 | $156.0 | $0.0 | 0.0% |
| Extremities | $13.1 | $13.0 | $0.1 | 0.9% |
| Trauma | $104.9 | $105.0 | -$0.1 | -0.1% |
| Sports Medicine | $340.0 | $330.0 | $10.0 | 3.0% |
| Total | $892.0 | $878.0 | $14.0 | 1.6% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement | $887.1 | $882.7 | $4.3 | 0.5% |
| Knees | $553.0 | $546.0 | $7.0 | 1.3% |
| Hips | $308.0 | $311.0 | -$3.0 | -1.0% |
| Extremities | $26.1 | $25.7 | $0.3 | 1.3% |
| Trauma | $210.9 | $209.3 | $1.7 | 0.8% |
| Sports Medicine | $673.0 | $657.0 | $16.0 | 2.4% |
| Total | $1,771.0 | $1,749.0 | $22.0 | 1.3% |
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| Geographic Region | 2Q19 | 2Q18 | $ Chg | % Chg |
| US | $421.5 | $400.1 | $21.4 | 5.4% |
| Ex-US | $470.5 | $477.9 | -$7.4 | -1.6% |
| Total | $892.0 | $878.0 | $14.0 | 1.6% |
Net Earnings Data
Net earnings are as follows, inclusive of all Smith & Nephew revenue.
| Amt | % of Sales | |
| Sales | $2,485.0 | |
| Cost of Sales | -$648.0 | 26.1% |
| R & D | -$139.0 | 5.6% |
| Selling and Admin | -$1,279.0 | 51.5% |
| Other | -$110.0 | 4.4% |
| Net Earnings | $309.0 | 12.4% |
Sources: Smith & Nephew; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
