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Smith+Nephew reported 3Q22 orthopedic sales of $849.3 million, -2.2% compared to the third quarter of 2021. Excluding the impact of currency headwinds, the company achieved underlying growth of 2.1% in its orthopedic franchise and 7.1% in sports medicine.
Volume-based procurement (VBP) in China hurt orthopedic sales significantly. Excluding China, Smith+Nephew’s knee replacement sales grew 11.8% in the quarter while hip replacement grew 3.4%. Also, SNN opted to not participate in provincial tenders for trauma, offsetting that franchise’s return to growth elsewhere. The company will lap the impact of VBP in the first half of 2022.
Smith+Nephew achieved some early wins in its bid to “re-wire” its orthopedic franchise and overall operations. Backorders declined with a new demand planning process in place. Additionally, underused instrument sets are being redeployed.
Technology is a key element of Smith+Nephew’s strategy to win share. Company CEO Deepak Nath said, “I feel very good about our position in robotics now. We’ve moved our installed base past 500 units, even with the constraint of chip availability. Most recently, we’ve launched new software and indications for CORI, including making CORI the first and only system today to support knee revision procedures.”
Smith+Nephew expects to achieve the midpoint of its 2022 underlying growth guidance of 4% to 5%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $381.1 | $388.3 | ($7.2) | (1.9%) |
| Knees | $228.8 | $227.0 | $1.8 | 0.8% |
| Hips | $135.6 | $145.0 | ($9.4) | (6.5%) |
| Extremities | $16.7 | $16.3 | $0.4 | 2.4% |
| Trauma | $111.8 | $119.7 | ($7.9) | (6.6%) |
| Sports Medicine | $340.1 | $346.0 | ($5.9) | (1.7%) |
| Orthobiologics | $16.3 | $14.5 | $1.7 | 12% |
| Total | $849.3 | $868.5 | ($19.3) | (2.2%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,210.8 | $1,223.7 | ($12.8) | (1%) |
| Knees | $725.3 | $711.2 | $14.1 | 2% |
| Hips | $433.6 | $460.4 | ($26.8) | (5.8%) |
| Extremities | $51.9 | $52.0 | ($0.1) | (0.2%) |
| Trauma | $352.9 | $381.5 | ($28.6) | (7.5%) |
| Sports Medicine | $1,046.8 | $1,048.0 | ($1.2) | (0.1%) |
| Orthobiologics | $46.5 | $44.3 | $2.2 | 5% |
| Total | $2,657.0 | $2,697.4 | ($40.4) | (1.5%) |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $455.9 | $434.3 | $21.6 | 5% |
| OUS | $393.4 | $434.3 | ($40.9) | (9.4%) |
| EMEA | $199.2 | $232.1 | ($32.8) | (14.2%) |
| Asia Pacific | $92.5 | $107.9 | ($15.5) | (14.3%) |
| Rest of World | $101.7 | $94.3 | $7.4 | 7.9% |
| Total | $849.3 | $868.5 | ($19.3) | (2.2%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,394.0 | $1,361.0 | $32.9 | 2.4% |
| OUS | $1,263.0 | $1,336.4 | ($73.3) | (5.5%) |
| EMEA | $664.8 | $728.0 | ($63.2) | (8.7%) |
| Asia Pacific | $287.7 | $325.6 | ($38.0) | (11.7%) |
| Rest of World | $310.6 | $282.8 | $27.8 | 9.8% |
| Total | $2,657.0 | $2,697.4 | ($40.4) | (1.5%) |
Smith+Nephew reported 3Q22 orthopedic sales of $849.3 million, -2.2% compared to the third quarter of 2021. Excluding the impact of currency headwinds, the company achieved underlying growth of 2.1% in its orthopedic franchise and 7.1% in sports medicine.
Volume-based procurement (VBP) in China hurt orthopedic sales significantly....
Smith+Nephew reported 3Q22 orthopedic sales of $849.3 million, -2.2% compared to the third quarter of 2021. Excluding the impact of currency headwinds, the company achieved underlying growth of 2.1% in its orthopedic franchise and 7.1% in sports medicine.
Volume-based procurement (VBP) in China hurt orthopedic sales significantly. Excluding China, Smith+Nephew’s knee replacement sales grew 11.8% in the quarter while hip replacement grew 3.4%. Also, SNN opted to not participate in provincial tenders for trauma, offsetting that franchise’s return to growth elsewhere. The company will lap the impact of VBP in the first half of 2022.
Smith+Nephew achieved some early wins in its bid to “re-wire” its orthopedic franchise and overall operations. Backorders declined with a new demand planning process in place. Additionally, underused instrument sets are being redeployed.
Technology is a key element of Smith+Nephew’s strategy to win share. Company CEO Deepak Nath said, “I feel very good about our position in robotics now. We’ve moved our installed base past 500 units, even with the constraint of chip availability. Most recently, we’ve launched new software and indications for CORI, including making CORI the first and only system today to support knee revision procedures.”
Smith+Nephew expects to achieve the midpoint of its 2022 underlying growth guidance of 4% to 5%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $381.1 | $388.3 | ($7.2) | (1.9%) |
| Knees | $228.8 | $227.0 | $1.8 | 0.8% |
| Hips | $135.6 | $145.0 | ($9.4) | (6.5%) |
| Extremities | $16.7 | $16.3 | $0.4 | 2.4% |
| Trauma | $111.8 | $119.7 | ($7.9) | (6.6%) |
| Sports Medicine | $340.1 | $346.0 | ($5.9) | (1.7%) |
| Orthobiologics | $16.3 | $14.5 | $1.7 | 12% |
| Total | $849.3 | $868.5 | ($19.3) | (2.2%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,210.8 | $1,223.7 | ($12.8) | (1%) |
| Knees | $725.3 | $711.2 | $14.1 | 2% |
| Hips | $433.6 | $460.4 | ($26.8) | (5.8%) |
| Extremities | $51.9 | $52.0 | ($0.1) | (0.2%) |
| Trauma | $352.9 | $381.5 | ($28.6) | (7.5%) |
| Sports Medicine | $1,046.8 | $1,048.0 | ($1.2) | (0.1%) |
| Orthobiologics | $46.5 | $44.3 | $2.2 | 5% |
| Total | $2,657.0 | $2,697.4 | ($40.4) | (1.5%) |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $455.9 | $434.3 | $21.6 | 5% |
| OUS | $393.4 | $434.3 | ($40.9) | (9.4%) |
| EMEA | $199.2 | $232.1 | ($32.8) | (14.2%) |
| Asia Pacific | $92.5 | $107.9 | ($15.5) | (14.3%) |
| Rest of World | $101.7 | $94.3 | $7.4 | 7.9% |
| Total | $849.3 | $868.5 | ($19.3) | (2.2%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,394.0 | $1,361.0 | $32.9 | 2.4% |
| OUS | $1,263.0 | $1,336.4 | ($73.3) | (5.5%) |
| EMEA | $664.8 | $728.0 | ($63.2) | (8.7%) |
| Asia Pacific | $287.7 | $325.6 | ($38.0) | (11.7%) |
| Rest of World | $310.6 | $282.8 | $27.8 | 9.8% |
| Total | $2,657.0 | $2,697.4 | ($40.4) | (1.5%) |
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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.
