Core Insights - Smith+Nephew has introduced a new medial stabilized insert for its LEGION Total Knee System, reflecting a significant shift in knee arthroplasty trends from Posterior Stabilized designs to more bone-conservative Cruciate Retaining designs, with medial stabilized inserts growing from 4% in 2018 to 32% in 2023 [1][2][4] Company Overview - Smith+Nephew is a global medical technology company focused on the repair, regeneration, and replacement of soft and hard tissue, with a mission to restore people's bodies and self-belief through innovative technologies [7][8] - The company generated annual sales of $5.8 billion in 2024 and operates in around 100 countries, being a constituent of the FTSE100 [8] Product Development - The new medial stabilized insert is designed to enhance stability with a larger anterior medial lip and kinematics that mimic the natural knee, aiming for greater efficiency and shorter operating times [1][2] - The LEGION Medial Stabilized TKS is positioned as a solution that aligns with personalized care principles, integrating advanced technologies and maintaining a strong clinical legacy [2][5] Market Trends - There is a growing demand for porous and kinematically advanced knee solutions, with the LEGION Medial Stabilized TKS expected to meet the evolving needs of patients and surgeons [5] - The product will be available in the US on a limited basis, with a full commercial release planned for 2025 and an introduction in Canada in 2026 [5]

Core Viewpoint - Smith+Nephew has been awarded a 10-year contract worth up to $75 million by the U.S. Department of Defense to provide its RENASYS TOUCH Negative Pressure Wound Therapy Systems, highlighting the company's commitment to supporting military medical needs [1][9]. Group 1: Product and Technology - The RENASYS TOUCH NPWT System is noted for its clinical efficacy and operational features such as portability, intuitive interface, and customizable therapy modes, which enhance individualized patient care [2]. - This system is designed to assist military medical providers in various scenarios, including prolonged casualty care and aeromedical transport, ensuring effective treatment in military settings [2]. Group 2: Strategic Partnerships - In 2024, Smith+Nephew entered into a Master Cooperative Research and Development Agreement with the U.S. Army Institute of Surgical Research to innovate wound and burn care across the military care continuum [6]. Group 3: Historical Context and Commitment - Smith+Nephew has a historical legacy of supporting military medical needs, dating back to World War I, and continues to evolve its offerings to meet the demands of both civilian and military healthcare [7]. - The company emphasizes its ongoing commitment to innovation in wound care through an extensive Advanced Wound Management portfolio aimed at addressing complex clinical needs [7].

Core Insights - Smith+Nephew has been awarded a 10-year contract worth up to $75 million by the U.S. Department of Defense to provide its RENASYS TOUCH Negative Pressure Wound Therapy Systems [1][8] - The RENASYS TOUCH NPWT System is designed for clinical efficacy and operational fitness, including portability and an intuitive interface, allowing for individualized patient care [2][5] - The system will support military medical providers in various care settings, including prolonged casualty care and aeromedical transport [2][5] Group 1 - The RENASYS TOUCH NPWT System is manufactured in the United States, emphasizing local production [2] - The system is intended to simplify negative pressure wound therapy for military applications, addressing the complexities of future conflicts [5] - Smith+Nephew has a historical commitment to military medical needs, dating back to World War I, and continues to innovate in wound care [6][10] Group 2 - In 2024, Smith+Nephew entered into a Master Cooperative Research and Development Agreement with the U.S. Army Institute of Surgical Research to enhance wound and burn care in military settings [6] - The company generated annual sales of $5.8 billion in 2024 and operates in around 100 countries, indicating a strong global presence [11]

Core Insights - Smith+Nephew's CARTIHEAL AGILI-C Cartilage Repair Implant shows promising results in treating knee cartilage defects, outperforming the current surgical standard of care in a recent multicenter randomized controlled trial [1][3][4] Group 1: Product Performance - The CARTIHEAL Implant has received FDA approval and breakthrough designation, indicating its potential to transform the cartilage repair landscape [3][4] - Patients treated with the CARTIHEAL AGILI-C Implant reported significantly better knee pain relief and quality of life improvements over a 4-year period [6] - The implant demonstrated an 87% reduction in the risk of subsequent total knee arthroplasty (TKA) and osteotomy compared to the surgical standard of care, which is a critical consideration for patients with mild to moderate osteoarthritis [4][6] Group 2: Clinical Outcomes - The implant effectively treated a diverse group of patients across various demographics, including age and lesion size, while delivering clinically meaningful results [6] - Professor Elizaveta Kon emphasized the importance of inclusivity in study design, noting that the CARTIHEAL Implant has shown superior performance across genders and lesion locations [4] - The technology is particularly beneficial for patients seeking procedures that allow them to maintain their daily activities, such as playing with children and grandchildren [4] Group 3: Industry Engagement - The CARTIHEAL Implant will be featured at the Arthroscopy Association of North America Annual Meeting (AANA 2025), highlighting its significance in the medical community [1][5] - A lunch symposium will focus on the use of the CARTIHEAL Implant for treating various cartilage pathologies, further promoting its clinical applications [4]

“CORI on Tour” will highlight the latest advancements in robotics-assisted surgery for hip and knee joint replacement Smith+Nephew (LSE:SN, NYSE:SNN), the global medical technology company, today announces a months-long roadshow across central Europe to promote its CORI Surgical System – an advanced robotics-assisted surgical platform for total knee and hip joint replacement procedures. The tour will commence in Berlin today and make dozens of stops at surgical facilities across Germany, Austria and Switzer ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional val ...

Core Insights - Smith & Nephew plc is undergoing a transformation under the new leadership of CEO Deepak Nath, who was appointed in April 2022, aiming to address previous operational underperformance [1] Company Overview - The company is focusing on identifying high-quality investment opportunities and addressing mispricing in the market [1]

Core Insights - Smith+Nephew is showcasing advancements in Orthopaedic Reconstruction at the American Academy of Orthopaedic Surgeons Annual Meeting in San Diego, focusing on personalized surgical technologies [1][2]. Robotics and Surgical Systems - The CORIOGRAPH Pre-Op Planning and Modeling Services and CORI Surgical System provide personalized approaches for knee and hip replacement surgeries, with recent enhancements for hip procedures [1]. - The CORI Digital Tensioner offers objective gap data for knee procedures, improving surgical planning and execution [1]. Hip Surgery Innovations - The CATALYSTEM Primary Hip System features a triple-taper stem design suitable for various surgical approaches, addressing the growing demand for anterior approach procedures [3]. - Smith+Nephew's total hip arthroplasty portfolio has been recognized for its high survivorship rate of over 94.1% over 20 years, according to the Australian Orthopaedic Association National Joint Replacement Registry [3]. Knee Surgery Developments - The LEGION Hinged Knee System incorporates proprietary OXINIUM implant technology, enhancing durability and wear resistance, and allows for intraoperative transitions between implant types [4]. Shoulder System Advancements - The AETOS Shoulder System has received FDA clearance for a stemless anatomic total shoulder replacement, designed for efficiency and stability with a small operating room footprint [5]. Company Overview - Smith+Nephew operates globally with a focus on medical technology for tissue repair and replacement, generating annual sales of $5.8 billion in 2024 [9].

Core Viewpoint - Smith+Nephew is showcasing advancements in Sports Medicine for joint repair at the American Academy of Orthopaedic Surgeons Annual Meeting, highlighting innovative technologies such as Spatial Surgery and the CARTIHEAL AGILI-C Cartilage Repair Implant [1][2]. Group 1: Innovations in Sports Medicine - The company introduces Spatial Surgery, a new category in arthroscopic surgical innovation, featuring the TESSA Spatial Surgery System, which combines personalized operative planning with real-time tracking and augmented reality guidance [1]. - The CARTIHEAL AGILI-C Cartilage Repair Implant is FDA approved and aims to evolve the cartilage repair landscape, allowing treatment for patients previously without access to such procedures [2]. - Clinical studies show that patients treated with the CARTIHEAL AGILI-C Implant reported significantly better knee function, pain relief, and mobility improvements over a four-year period [3]. Group 2: Clinical Outcomes and Efficacy - The CARTIHEAL AGILI-C Implant demonstrated a significantly lower risk of total knee arthroplasty (TKA) or osteotomy at four years compared to the surgical standard of care [3]. - The REGENETEN Bioinductive Implant has shown clinical superiority in rotator cuff repair, with results surpassing current standards of care and increasing usage in various tendon injuries [4]. - The REGENETEN Implant has been used in over 150,000 patients, resulting in a 3x reduction in the risk of re-tear in a randomized controlled trial versus standard repair alone [7]. Group 3: Company Overview - Smith+Nephew operates in approximately 100 countries and generated annual sales of $5.8 billion in 2024, focusing on the repair, regeneration, and replacement of soft and hard tissue [10]. - The company is a constituent of the FTSE100 and aims to restore patients' bodies and self-belief through innovative medical technologies [9].

Financial Performance - Smith+Nephew reported fourth quarter revenue of $1,571 million, reflecting an underlying growth of 8.3% and a reported growth of 7.8% after a -50bps foreign exchange headwind[9]. - Full year revenue reached $5,810 million, with an underlying growth of 5.3% and reported growth of 4.7%, impacted by a -60bps foreign exchange headwind[9]. - Operating profit for 2024 increased to $657 million, up 54.6% from $425 million in 2023, resulting in an operating profit margin of 11.3%[9]. - Trading profit grew 8.2% to $1,049 million, with a trading profit margin of 18.1%, an improvement of 60bps from the previous year[15]. - Cash generated from operations significantly improved to $1,245 million, a 50.2% increase from $829 million in 2023, with trading cash conversion rising to 95%[15]. - Free cash flow surged to $551 million, a substantial increase of 327.1% compared to $129 million in 2023[15]. - Adjusted earnings per share (EPSA) rose to 84.3¢, up from 82.8¢ in 2023, while basic EPS increased to 47.2¢ from 30.2¢[97]. - The Group reported a profit before taxation of $498 million for 2024, compared to $290 million in 2023, representing an increase of 71.0%[115]. - The Group reported total revenue of $5,810 million for 2024, an increase of 4.7% from $5,549 million in 2023[153]. - Annual sales for 2024 reached $5.8 billion, an increase from $5.549 billion in 2023, reflecting a growth of approximately 4.5%[111]. Product Development and Innovation - The company launched nearly 50 new products over the last three years, contributing to over 60% of revenue growth in 2024[11]. - The company launched 16 new products in 2024, contributing to over 60% of underlying revenue growth from products launched in the last five years[40][41]. - Advanced Wound Management reported improved performance driven by a leading position in the high-growth Negative Pressure Wound Therapy (NPWT) segment, contributing to an underlying revenue growth of 12.2% in Q4 2024[37][70]. - Sports Medicine achieved a strong performance with a steady stream of innovation and successful integration of acquired assets, despite facing significant VBP headwinds in China in 2024[36]. Market Performance - The US market showed strong underlying revenue growth of 11.9%, while Emerging Markets faced a decline of -2.3% due to challenges in China[56]. - Established Markets saw underlying revenue growth of 5.5%, with the US at 4.8% and Other Established Markets at 6.7%[75]. - Orthopaedics business unit delivered underlying revenue growth of 4.6%, with Knee Implants at 1.3% and Hip Implants at 4.0%[79]. - Sports Medicine Joint Repair achieved underlying revenue growth of 5.3%, with strong double-digit growth from REGENETEN, and 15.9% growth excluding China[66][67]. - Advanced Wound Bioactives achieved underlying revenue growth of 20.3% and reported growth of 20.1%, driven by strong double-digit growth in skin substitutes following the launch of GRAFIX PLUS[71]. - Advanced Wound Devices reported underlying revenue growth of 20.6% and reported growth of 19.9%, supported by the RENASYS and PICO Negative Pressure Wound Therapy Systems[72]. Strategic Initiatives - The 12-Point Plan has led to a near 9% net reduction in total workforce since its inception, with significant productivity improvements and cost savings achieved[30]. - For 2025, Smith+Nephew targets underlying revenue growth of around 5% and a trading profit margin between 19.0% and 20.0%[15]. - The company expects a trading profit margin of 19% to 20%, driven by operating leverage, cost reductions, and network optimization benefits[107]. - Trading cash conversion is projected to be between 80% to 90%, with restructuring costs estimated at around $45 million for 2025[108]. Financial Position and Cash Flow - The Group had access to $617 million in cash and cash equivalents and a net debt of $2,513 million as of December 31, 2024[125]. - The Group has committed facilities of $4.1 billion with an average maturity of 5.5 years, with no debt due for repayment in 2025[125]. - The Group's net debt decreased to $2,709 million in 2024 from $2,776 million in 2023, with available committed facilities increasing to $4.1 billion[185]. - The Group's cash and cash equivalents increased to $619 million in 2024 from $302 million in 2023[185]. - Cash generated from operations in 2024 was $1.245 billion, a substantial rise from $829 million in 2023, marking a growth of 50.1%[119]. Acquisitions and Investments - The acquisition of CartiHeal was completed for a total consideration of $231 million, which includes $180 million in cash and $49 million in contingent consideration[176][177]. Taxation and Dividends - The reported tax charge for 2024 was $86 million, up from $27 million in 2023, attributed to increased profits[170]. - The final dividend for 2023 was $202 million, with a proposed final dividend for 2024 also set at 23.1 US cents per share[174][175].