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Smith+Nephew reported 2Q20 orthopedic revenue of USD $600.5 million, -33.8% vs. 2Q19. After the market trough in April, the company noted improving trends as restrictions on elective surgeries eased across all regions. China is the first major market to return to growth for Smith+Nephew. U.S. recovery progressed throughout the quarter, with all 50 states reopened for elective surgery, although Texas and Mississippi introduced new restrictions. Recovery in Europe progressed more slowly due to significant variation across countries and the nature of public health systems.
Sales trends for the company rebounded throughout the quarter. Overall, the company’s sales were down -47% in April, -27% in May, and -12% in June. Within orthopedics, several categories returned to growth in June, including revision hips, partial knees and trauma plates. Hip replacement and trauma procedures have been among the most resilient during the pandemic. Smith+Nephew further benefited from recent launches in those categories, like its Dual Mobility Hip System and the EVOS plating system.
The company sold its first CORI next-generation robotic system during the quarter. Smith+Nephew believes that CORI will be an integral part of its ASC selling strategy due to the compact, modular nature of the CT-free system. Company leadership also said CORI is a “very positive financial proposal” for ASCs.
“We’ve identified ASCs as a strategic cross-franchise opportunity to bring orthopedics and sports medicine together. There were already good reasons to expect the acceleration of joint replacement in the ASCs, and it has become clear that part of the U.S. health care system’s response to COVID has been to accelerate this shift. We believe we’re well-positioned to benefit from the shift to our service offering for ASCs through branded positive connections and our enabling technology, including the launch of CORI.” – Smith+Nephew CEO Roland Diggelmann
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
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $271.7 | $447.1 | ($175.4) | (39.2%) |
| Knees | $149.0 | $278.0 | ($129.0) | (46.4%) |
| Hips | $112.2 | $156.0 | ($43.8) | (28.1%) |
| Extremities | $10.5 | $13.1 | ($2.6) | (19.9%) |
| Trauma | $92.4 | $104.9 | ($12.5) | (12%) |
| Sports Medicine | $225.4 | $339.8 | ($114.5) | (33.7%) |
| Orthobiologics | $11.2 | $15.6 | ($4.5) | (28.6%) |
| Total | $600.5 | $907.4 | ($306.9) | (33.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $671.8 | $887.1 | ($215.2) | (24.3%) |
| Knees | $400.5 | $553.0 | ($152.5) | (27.6%) |
| Hips | $249.2 | $308.0 | ($58.8) | (19.1%) |
| Extremities | $22.2 | $26.1 | ($3.9) | (15%) |
| Trauma | $189.7 | $210.9 | ($21.2) | (10.1%) |
| Sports Medicine | $523.4 | $672.8 | ($149.5) | (22.2%) |
| Orthobiologics | $24.8 | $21.8 | $3.0 | 13.6% |
| Total | $1,409.7 | $1,792.6 | ($383.0) | (21.4%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $293.3 | $449.1 | ($155.8) | (34.7%) |
| OUS | $307.3 | $458.3 | ($151.0) | (33%) |
| EMEA | $155.2 | $241.7 | ($86.4) | (35.8%) |
| Asia Pacific | $80.6 | $115.4 | ($34.8) | (30.2%) |
| Rest of World | $71.5 | $101.2 | ($29.8) | (29.4%) |
| Total | $600.5 | $907.4 | ($306.9) | (33.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $707.8 | $867.4 | ($159.6) | (18.4%) |
| OUS | $701.8 | $925.2 | ($223.4) | (24.1%) |
| EMEA | $385.1 | $501.5 | ($116.4) | (23.2%) |
| Asia Pacific | $169.7 | $226.6 | ($56.9) | (25.1%) |
| Rest of World | $147.0 | $197.1 | ($50.1) | (25.4%) |
| Total | $1,409.7 | $1,792.6 | ($383.0) | (21.4%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Smith+Nephew reported 2Q20 orthopedic revenue of USD $600.5 million, -33.8% vs. 2Q19. After the market trough in April, the company noted improving trends as restrictions on elective surgeries eased across all regions. China is the first major market to return to growth for Smith+Nephew. U.S. recovery progressed throughout the quarter, with...
Smith+Nephew reported 2Q20 orthopedic revenue of USD $600.5 million, -33.8% vs. 2Q19. After the market trough in April, the company noted improving trends as restrictions on elective surgeries eased across all regions. China is the first major market to return to growth for Smith+Nephew. U.S. recovery progressed throughout the quarter, with all 50 states reopened for elective surgery, although Texas and Mississippi introduced new restrictions. Recovery in Europe progressed more slowly due to significant variation across countries and the nature of public health systems.
Sales trends for the company rebounded throughout the quarter. Overall, the company’s sales were down -47% in April, -27% in May, and -12% in June. Within orthopedics, several categories returned to growth in June, including revision hips, partial knees and trauma plates. Hip replacement and trauma procedures have been among the most resilient during the pandemic. Smith+Nephew further benefited from recent launches in those categories, like its Dual Mobility Hip System and the EVOS plating system.
The company sold its first CORI next-generation robotic system during the quarter. Smith+Nephew believes that CORI will be an integral part of its ASC selling strategy due to the compact, modular nature of the CT-free system. Company leadership also said CORI is a “very positive financial proposal” for ASCs.
“We’ve identified ASCs as a strategic cross-franchise opportunity to bring orthopedics and sports medicine together. There were already good reasons to expect the acceleration of joint replacement in the ASCs, and it has become clear that part of the U.S. health care system’s response to COVID has been to accelerate this shift. We believe we’re well-positioned to benefit from the shift to our service offering for ASCs through branded positive connections and our enabling technology, including the launch of CORI.” – Smith+Nephew CEO Roland Diggelmann
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
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $271.7 | $447.1 | ($175.4) | (39.2%) |
| Knees | $149.0 | $278.0 | ($129.0) | (46.4%) |
| Hips | $112.2 | $156.0 | ($43.8) | (28.1%) |
| Extremities | $10.5 | $13.1 | ($2.6) | (19.9%) |
| Trauma | $92.4 | $104.9 | ($12.5) | (12%) |
| Sports Medicine | $225.4 | $339.8 | ($114.5) | (33.7%) |
| Orthobiologics | $11.2 | $15.6 | ($4.5) | (28.6%) |
| Total | $600.5 | $907.4 | ($306.9) | (33.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $671.8 | $887.1 | ($215.2) | (24.3%) |
| Knees | $400.5 | $553.0 | ($152.5) | (27.6%) |
| Hips | $249.2 | $308.0 | ($58.8) | (19.1%) |
| Extremities | $22.2 | $26.1 | ($3.9) | (15%) |
| Trauma | $189.7 | $210.9 | ($21.2) | (10.1%) |
| Sports Medicine | $523.4 | $672.8 | ($149.5) | (22.2%) |
| Orthobiologics | $24.8 | $21.8 | $3.0 | 13.6% |
| Total | $1,409.7 | $1,792.6 | ($383.0) | (21.4%) |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $293.3 | $449.1 | ($155.8) | (34.7%) |
| OUS | $307.3 | $458.3 | ($151.0) | (33%) |
| EMEA | $155.2 | $241.7 | ($86.4) | (35.8%) |
| Asia Pacific | $80.6 | $115.4 | ($34.8) | (30.2%) |
| Rest of World | $71.5 | $101.2 | ($29.8) | (29.4%) |
| Total | $600.5 | $907.4 | ($306.9) | (33.8%) |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $707.8 | $867.4 | ($159.6) | (18.4%) |
| OUS | $701.8 | $925.2 | ($223.4) | (24.1%) |
| EMEA | $385.1 | $501.5 | ($116.4) | (23.2%) |
| Asia Pacific | $169.7 | $226.6 | ($56.9) | (25.1%) |
| Rest of World | $147.0 | $197.1 | ($50.1) | (25.4%) |
| Total | $1,409.7 | $1,792.6 | ($383.0) | (21.4%) |
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.
