Ortho Scope: Smith & Nephew plc

Published: April 16, 2010

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Reconstructing Strong Growth

By continuing its investment in new products and medical education programs, Smith & Nephew plc (London) is positioning itself for further success as the market improves. The company has three main global business units, and orthopaedic reconstruction and trauma is its largest. In the orthopaedics segment, Smith & Nephew focuses on joint replacement systems, internal and external fixation devices (trauma), and clinical therapies such as low-frequency ultrasonic bone healing. 
 
"We continue to invest in cutting-edge technologies that both advance our existing products and position us to introduce new ones.” 
--David Illingworth, CEO
 
Building a strong portfolio with technologies such as the Birmingham hip-resurfacing system has put the company in the spotlight as pioneers in orthopaedics. Within the past few months, the company’s new products have included a versatile bone fixation technology for the foot and an imaging system that reduces the amount of radiation surgeons are exposed to during screw placement. 
 
Headquartered in Memphis, Smith & Nephew’s orthopaedics business grew last year despite tough market conditions. In the United States, hip and knee products performed well, in part due to new products such as the R3 acetabular system, and were up 7% and 10% respectively during the fourth quarter. 
 
 
In Q4 2009, the global revenue for Smith & Nephew’s orthopaedics business grew 2%.
Smith & Nephew’s other divisions also dip into orthopaedics. In March, the endoscopy business unit introduced a knotless suture anchor for repairing torn labrums in the hip and shoulder. It also launched a meniscal repair system to aid surgeons when deploying implants on either side of the meniscus. Both products were featured at the American Academy of Orthopaedic Surgeons annual meeting. 
 
As a leading company in orthopaedics, Smith & Nephew will continue its focus on growth through investing in new opportunities, whether it’s through new products or geographic expansion. Despite the challenging economic conditions last year, the company achieved growth and plans on remaining active in finding new ways to increase its business.

 

Focus Going Forward

  • Implement strategic pillars for success through innovation, medical education, and customer service. 
  • Continue focus on operational margins to enable increased investment in business.
  • Drive revenue from new opportunities in biologics, emerging markets, and adjacent technologies. 

Highlights 

In 2009, the orthopaedic product categories achieved a good finish to a tough year.
  • March 2010:Launches VLP foot plating system for internal bone fixation. 
  • January 2010: Distributes more than $2 million in implants and surgical instruments to surgeons to treat victims of the earthquake in Haiti. 
  • September 2009: Exogen.com goes live as resource for patients with broken bones.
  • May 2009: Makes first contribution to Orthopaedic Research and Education Foundation for continuing medical education grants. 

Leadership

  • David Illingworth, CEO
  • Adrian Hennah, CFO
  • Jeff Adams, senior vice president of global operations
  • Joseph DeVivo, president, orthopaedic reconstruction and trauma
  • Michael Frazzette, president, endoscopy
  • Roger Teasdale, president, advanced wound management 
  • Mark Augusti, president, biologics and clinical therapies
  • Kelvin Johnson, president, emerging markets

Published in Orthotec, Spring 2010, Volume 1, No. 1


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