Medical devices major Smith and Nephew’s (SNN) orthopedic division recently launched its new Short Modular Femoral (“SMF”) Hip System at the meeting of the American Academy of Orthopedic Surgeons. This new modular total hip replacement stem system with its wide range of surgical techniques will enable the surgeons to efficiently implant Smith & Nephew’s proprietary VERILAST advanced bearing material.
The SMF Hip System is 20% smaller than the traditional hip stems, thus, it can be inserted through smaller incisions or anterior incision. This will, in turn, lessen soft tissue trauma while offering fast patient recovery.
Smith & Nephew’s Orthopedics segment comprises reconstructive joint implants, trauma products (consisting of internal and external fixation devices used in the stabilization of severe fractures), and associated clinical therapies such as bone growth stimulators and a joint fluid therapy product applied in orthopedic office or clinic settings.
The Orthopedics division, which reported revenues of $584 million in the last quarter, recorded an underlying decline of 1% in the U.S. and 4% in Europe. However, revenues from rest of the world increased 3%. The same trend was observed in the company’s Endoscopy segment where revenues declined across the U.S. and Europe while sales from rest of the world improved year over year.
The situation in Europe continues to be affected by adoption of austerity measures by many countries. Moreover, the competitive scenario remains intense in the orthopedic space with Smith & Nephew facing stiff competition from larger players like Stryker (SYK), Johnson & Johnson’s (JNJ) DePuy and Zimmer(ZMH).
Despite these challenges, Smith & Nephew aims to improve its performance moving forward on the back of a strong product pipeline and higher investments in sales and marketing.
The company expects its Orthopedic Reconstruction business to grow at above-market rate in 2011 based on its knee franchise. The addition of SMF Hip System is expected to reinforce Smith & Nephew’s orthopedic business, which currently contributes 55% of its total sales.
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