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Smith+Nephew reported 1Q21 orthopedic revenue of USD $897.9 million, +11% vs. 1Q20. While there is still significant geographic variability, the company said that procedure volumes are normalizing across more regions. Smith+Nephew sees the second half of the year as unconstrained by COVID restrictions.
Hip replacement continued to outperform knee replacement in the first quarter, a trend that we’ve observed across the industry. Company leadership said surgeons continue to prioritize hip procedures, and Smith+Nephew is constrained by the lack of a cementless knee option in the U.S. The company plans to fill that portfolio gap by the end of 2021. Robotic sales in the U.S. helped offset softness in the knee franchise, as Smith+Nephew begins transitioning from upgrading NAVIO customers to placing CORI units with new customers.
The company’s sports medicine franchise benefitted from its ASC presence, more young people in the patient mix and increased incidence of acute injury. However, knee repair procedures remain under pressure due to their greater exposure to reduced sports activity.
Smith+Nephew expects 2021 total revenue growth of +10% to +13% vs. 2020, with hips continuing to outperform knees and robust strength in sports medicine. Additionally, the company initiated an operational transformation aimed at saving $200 million by 2023. The transformation includes a new manufacturing center in Malaysia as well as outsourced warehousing and distribution.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $406.6 | $400.2 | $6.5 | 1.6% |
| Knees | $237.0 | $251.5 | ($14.5) | (5.8%) |
| Hips | $154.0 | $137.0 | $17.0 | 12.4% |
| Extremities | $15.6 | $11.7 | $4.0 | 34.1% |
| Trauma | $133.4 | $97.3 | $36.0 | 37% |
| Sports Medicine | $344.0 | $298.0 | $46.0 | 15.4% |
| Orthobiologics | $13.9 | $13.6 | $0.3 | 2.1% |
| Total | $897.9 | $809.1 | $88.8 | 11% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $454.6 | $414.6 | $40.1 | 9.7% |
| OUS | $443.3 | $394.6 | $48.7 | 12.3% |
| EMEA | $245.8 | $229.9 | $15.9 | 6.9% |
| Asia Pacific | $106.0 | $89.1 | $16.9 | 18.9% |
| Rest of World | $91.5 | $75.6 | $15.9 | 21.1% |
| Total | $897.9 | $809.1 | $88.8 | 11% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Smith+Nephew reported 1Q21 orthopedic revenue of USD $897.9 million, +11% vs. 1Q20. While there is still significant geographic variability, the company said that procedure volumes are normalizing across more regions. Smith+Nephew sees the second half of the year as unconstrained by COVID restrictions.
Hip replacement continued to...
Smith+Nephew reported 1Q21 orthopedic revenue of USD $897.9 million, +11% vs. 1Q20. While there is still significant geographic variability, the company said that procedure volumes are normalizing across more regions. Smith+Nephew sees the second half of the year as unconstrained by COVID restrictions.
Hip replacement continued to outperform knee replacement in the first quarter, a trend that we’ve observed across the industry. Company leadership said surgeons continue to prioritize hip procedures, and Smith+Nephew is constrained by the lack of a cementless knee option in the U.S. The company plans to fill that portfolio gap by the end of 2021. Robotic sales in the U.S. helped offset softness in the knee franchise, as Smith+Nephew begins transitioning from upgrading NAVIO customers to placing CORI units with new customers.
The company’s sports medicine franchise benefitted from its ASC presence, more young people in the patient mix and increased incidence of acute injury. However, knee repair procedures remain under pressure due to their greater exposure to reduced sports activity.
Smith+Nephew expects 2021 total revenue growth of +10% to +13% vs. 2020, with hips continuing to outperform knees and robust strength in sports medicine. Additionally, the company initiated an operational transformation aimed at saving $200 million by 2023. The transformation includes a new manufacturing center in Malaysia as well as outsourced warehousing and distribution.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $406.6 | $400.2 | $6.5 | 1.6% |
| Knees | $237.0 | $251.5 | ($14.5) | (5.8%) |
| Hips | $154.0 | $137.0 | $17.0 | 12.4% |
| Extremities | $15.6 | $11.7 | $4.0 | 34.1% |
| Trauma | $133.4 | $97.3 | $36.0 | 37% |
| Sports Medicine | $344.0 | $298.0 | $46.0 | 15.4% |
| Orthobiologics | $13.9 | $13.6 | $0.3 | 2.1% |
| Total | $897.9 | $809.1 | $88.8 | 11% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $454.6 | $414.6 | $40.1 | 9.7% |
| OUS | $443.3 | $394.6 | $48.7 | 12.3% |
| EMEA | $245.8 | $229.9 | $15.9 | 6.9% |
| Asia Pacific | $106.0 | $89.1 | $16.9 | 18.9% |
| Rest of World | $91.5 | $75.6 | $15.9 | 21.1% |
| Total | $897.9 | $809.1 | $88.8 | 11% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. 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.
