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Smith+Nephew reported 3Q20 orthopedic revenue of USD $845.9 million, -2.7% vs. 3Q19. While the company improved sequentially from the second quarter, lower levels of competitive sports, weakness in emerging markets and significant knee replacement losses hobbled its recovery. Hip replacement sales performed well in the quarter as surgeons continue to preferentially treat hips coupled with Smith+Nephew’s rollout of the OR30 Dual Mobility Hip System.
The company’s pending acquisition of the extremity orthopedics business from Integra LifeSciences has the potential to be highly synergistic. Smith+Nephew expects to drive double-digit growth in the purchased products through its wider-reaching channels and existing presence in ASCs. Notably, the acquisition includes a specialized extremity salesforce with distribution capabilities.
“Integra complements our strong reconstruction business with upper extremities, notably the shoulder. It also gives us a play in foot and ankle. It strengthens the commercial capabilities, not just with the joint team, but also with the trauma team. We acquired a full commercial salesforce in the U.S. with some distributors in Europe. We feel very good about this acquisition, both strategically and in the current timeframe.” – Roland Diggelmann, Smith+Nephew CEO
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
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $405.7 | $417.3 | ($11.6) | (2.8%) |
| Knees | $237.1 | $256.7 | ($19.6) | (7.6%) |
| Hips | $156.4 | $147.3 | $9.1 | 6.2% |
| Extremities | $12.3 | $13.3 | ($1.0) | (7.7%) |
| Trauma | $106.0 | $106.7 | ($0.7) | (0.7%) |
| Sports Medicine | $321.9 | $327.7 | ($5.8) | (1.8%) |
| Orthobiologics | $12.3 | $17.3 | ($5.0) | (28.8%) |
| Total | $845.9 | $869.0 | ($23.1) | (2.7%) |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,077.6 | $1,304.4 | ($226.8) | (17.4%) |
| Knees | $637.5 | $809.7 | ($172.1) | (21.3%) |
| Hips | $405.6 | $455.3 | ($49.7) | (10.9%) |
| Extremities | $34.5 | $39.4 | ($4.9) | (12.5%) |
| Trauma | $295.6 | $317.6 | ($22.0) | (6.9%) |
| Sports Medicine | $845.3 | $1,000.5 | ($155.3) | (15.5%) |
| Orthobiologics | $37.1 | $39.2 | ($2.0) | (5.2%) |
| Total | $2,255.6 | $2,661.7 | ($406.0) | (15.3%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $444.1 | $435.2 | $8.9 | 2% |
| OUS | $401.8 | $433.8 | ($32.0) | (7.4%) |
| EMEA | $222.9 | $226.5 | ($3.6) | (1.6%) |
| Asia Pacific | $96.0 | $110.3 | ($14.3) | (13%) |
| Rest of World | $82.9 | $97.0 | ($14.1) | (14.5%) |
| Total | $845.9 | $869.0 | ($23.1) | (2.7%) |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,151.9 | $1,302.6 | ($150.7) | (11.6%) |
| OUS | $1,103.7 | $1,359.0 | ($255.4) | (18.8%) |
| EMEA | $608.0 | $727.9 | ($119.9) | (16.5%) |
| Asia Pacific | $265.7 | $337.0 | ($71.3) | (21.1%) |
| Rest of World | $230.0 | $294.1 | ($64.2) | (21.8%) |
| Total | $2,255.6 | $2,661.7 | ($406.0) | (15.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Smith+Nephew reported 3Q20 orthopedic revenue of USD $845.9 million, -2.7% vs. 3Q19. While the company improved sequentially from the second quarter, lower levels of competitive sports, weakness in emerging markets and significant knee replacement losses hobbled its recovery. Hip replacement sales performed well in the quarter as surgeons...
Smith+Nephew reported 3Q20 orthopedic revenue of USD $845.9 million, -2.7% vs. 3Q19. While the company improved sequentially from the second quarter, lower levels of competitive sports, weakness in emerging markets and significant knee replacement losses hobbled its recovery. Hip replacement sales performed well in the quarter as surgeons continue to preferentially treat hips coupled with Smith+Nephew’s rollout of the OR30 Dual Mobility Hip System.
The company’s pending acquisition of the extremity orthopedics business from Integra LifeSciences has the potential to be highly synergistic. Smith+Nephew expects to drive double-digit growth in the purchased products through its wider-reaching channels and existing presence in ASCs. Notably, the acquisition includes a specialized extremity salesforce with distribution capabilities.
“Integra complements our strong reconstruction business with upper extremities, notably the shoulder. It also gives us a play in foot and ankle. It strengthens the commercial capabilities, not just with the joint team, but also with the trauma team. We acquired a full commercial salesforce in the U.S. with some distributors in Europe. We feel very good about this acquisition, both strategically and in the current timeframe.” – Roland Diggelmann, Smith+Nephew CEO
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
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $405.7 | $417.3 | ($11.6) | (2.8%) |
| Knees | $237.1 | $256.7 | ($19.6) | (7.6%) |
| Hips | $156.4 | $147.3 | $9.1 | 6.2% |
| Extremities | $12.3 | $13.3 | ($1.0) | (7.7%) |
| Trauma | $106.0 | $106.7 | ($0.7) | (0.7%) |
| Sports Medicine | $321.9 | $327.7 | ($5.8) | (1.8%) |
| Orthobiologics | $12.3 | $17.3 | ($5.0) | (28.8%) |
| Total | $845.9 | $869.0 | ($23.1) | (2.7%) |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,077.6 | $1,304.4 | ($226.8) | (17.4%) |
| Knees | $637.5 | $809.7 | ($172.1) | (21.3%) |
| Hips | $405.6 | $455.3 | ($49.7) | (10.9%) |
| Extremities | $34.5 | $39.4 | ($4.9) | (12.5%) |
| Trauma | $295.6 | $317.6 | ($22.0) | (6.9%) |
| Sports Medicine | $845.3 | $1,000.5 | ($155.3) | (15.5%) |
| Orthobiologics | $37.1 | $39.2 | ($2.0) | (5.2%) |
| Total | $2,255.6 | $2,661.7 | ($406.0) | (15.3%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $444.1 | $435.2 | $8.9 | 2% |
| OUS | $401.8 | $433.8 | ($32.0) | (7.4%) |
| EMEA | $222.9 | $226.5 | ($3.6) | (1.6%) |
| Asia Pacific | $96.0 | $110.3 | ($14.3) | (13%) |
| Rest of World | $82.9 | $97.0 | ($14.1) | (14.5%) |
| Total | $845.9 | $869.0 | ($23.1) | (2.7%) |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,151.9 | $1,302.6 | ($150.7) | (11.6%) |
| OUS | $1,103.7 | $1,359.0 | ($255.4) | (18.8%) |
| EMEA | $608.0 | $727.9 | ($119.9) | (16.5%) |
| Asia Pacific | $265.7 | $337.0 | ($71.3) | (21.1%) |
| Rest of World | $230.0 | $294.1 | ($64.2) | (21.8%) |
| Total | $2,255.6 | $2,661.7 | ($406.0) | (15.3%) |
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.
