Core Insights - SNN's CORIOGRAPH Pre-Op Planning and Modeling Services enhances precision and personalization in joint replacement surgeries, integrating with the CORI Surgical System to create patient-specific surgical plans [1][12][14] - The company has a market capitalization of $10.88 billion, with a projected revenue of $5.78 billion for fiscal 2024, indicating a growth of 10.9% from fiscal 2023 [3] - SNN's stock has underperformed, losing 9.2% year-to-date compared to the industry's growth of 8.6% and the S&P 500's gain of 23.8% [2] Company Developments - The CORIOGRAPH platform supports both 2D and 3D imaging, allowing for tailored surgical approaches and improved patient outcomes [5][15] - The first procedure using the CORIOGRAPH services for hip replacement was completed by a leading surgeon, indicating practical application and validation of the technology [6] - The CORI Surgical System is designed for efficiency in knee arthroplasty, suitable for outpatient settings, and is supported by the company's Real Intelligence digital solution [7] Industry Positioning - SNN is well-positioned to capture a larger share of the expanding orthopedic market due to its innovative offerings and focus on precision care [8] - The hip replacement implants market is estimated at $4.8 billion in 2023, with a projected CAGR of 2.1% from 2024 to 2030, indicating growth potential for SNN's products [17] - The introduction of the CORIOGRAPH platform is expected to enhance investor confidence and potentially improve stock performance by driving revenue growth through increased adoption of the CORI Surgical System [13]

Latest expansion to the CORI◊ Surgical System portfolio provides a personalized solution for patients and surgeons Smith+Nephew ((LSE:SN, NYSE:SNN), the global medical technology company, today announces its CORIOGRAPH Pre-Op Planning and Modeling Services is now cleared for total hip arthroplasty (THA) by the United States Food and Drug Administration. Exclusively for users of the CORI Surgical System, this innovative planning software allows for use of either X-rays or CT scans for planning and modeling, ...

Smith+Nephew ((LSE:SN, NYSE:SNN), the global medical technology company, today announces it has received 510(k) clearance from the United States Food & Drug Administration for a stemless anatomic total shoulder for the AETOS Shoulder System (AETOS Stemless).  AETOS Stemless addresses the growing demand for anatomic total shoulder replacement with a small operating room footprint allowing for an efficient procedure.1 It is designed to maximize metaphyseal fixation and stability with an inlay collar, cruciate ...

Smith & Nephew (NYSE: SNN ) announced its Q3 results on the 31st of October. Guidance for FY24 was reduced citing the impact of lower demand from China. Share prices closed down 13% on the announcement. Revenue growth projectionsWe use Cash Flow Returns On Investment based DCF valuation tools provided by our affiliate company, ROCGA Research.With over 20 years of experience in investment analysis, we are actively seeking out undervalued and quality companies.ROCGA Research is an online platform that provide ...

Financial Data and Key Metrics - Revenue in Q3 2024 was $1.4 billion with 4% underlying growth, and reported growth was also 4% due to neutral foreign exchange impact [9] - Full-year 2024 underlying revenue growth is expected to be around 4.5%, below the previous guidance range of 5% to 6% [24] - Trading margin expansion for 2024 is expected to be up to 50 basis points, with a target trading margin of 19% to 20% in 2025 [25][27] Business Unit Performance - Orthopedics grew 2.3% underlying, with U.S. knees and hips growing 0.7% and 3.2% respectively [11] - Other Reconstruction grew by 13.7%, driven by robotics, capital, and consumables [14] - Trauma and Extremities grew by 3.3%, with the EVOS plating system showing strong double-digit growth [14] - Sports Medicine and ENT grew 3.9% underlying, with joint repair growth at 0.1% due to VBP headwinds in China [16] - Advanced Wound Management grew 6.5%, with Advanced Wound Care, Bioactives, and Advanced Wound Devices growing 3.4%, 8%, and 11% respectively [20][21][22] Market Performance - Established Markets showed strong performance with 4% growth in the U.S. and 6.8% in other established markets [10] - Emerging markets were broadly flat, with a disappointing quarter in China, which lowered overall OUS growth by around 5 percentage points in knees and hips [10][13] - China's impact on group growth shifted from neutral to a 2 percentage point headwind in Q3 [28] Company Strategy and Industry Competition - The 12-Point Plan has driven operational improvements, particularly in U.S. recon, with reduced customer churn and improved product availability [8][32] - Robotics adoption and innovation delivery remain key long-term growth drivers, with CORI utilization reaching almost one-third of U.S. knees [14][37] - The company expects to return to higher growth in Trauma and Extremities in Q4, driven by EVOS and the rollout of the AETOS shoulder [15][23] Management Commentary on Operating Environment and Future Outlook - Growth headwinds in China, particularly in Sports Medicine and Orthopedics, are expected to persist through 2024 and into 2025 [5][7] - The company remains optimistic about structural improvements in established markets, driven by the 12-Point Plan [8][29] - Full-year 2024 trading margin expansion is expected to be up to 50 basis points, with China headwinds likely to spill over into 2025 [25][26] Other Important Information - The company expects cash conversion to be around 85% for the full year, with continued improvement in 2025 [26][104] - Innovation investments are delivering growth, with new products from the last five years contributing almost half of total revenue growth in 2023 [37] Q&A Session Summary Question: Drivers of lower end-market demand in China Orthopedics and expectations for rebound [44] - The weaker-than-expected demand in China Orthopedics is due to reduced end-customer demand and slower adoption of robotics, with orders expected to remain low through Q4 and into 2025 [45][46] Question: Margin downgrade for 2025 and its relation to China [44] - The majority of the margin downgrade is driven by China, particularly the lack of volume uplift from Sports Medicine VBP and slower Orthopedics growth [47][53] Question: Revenue growth expectations for 2025 and operating leverage beyond 2025 [55] - Revenue growth for 2025 is expected to be around 5%, with continued margin expansion driven by cost savings and operational leverage [56][57] Question: Impact of VBP in China and potential market share loss [58] - The lack of volume growth in China is primarily a market effect, with some evidence of local competitors gaining share, though it is difficult to parse at this stage [58] Question: OUS knee performance and competitive dynamics [61][74] - OUS knee performance ex-China remains robust, with improvements in product availability and commercial execution driving growth [76][77] Question: Trauma franchise strength and competitive outlook [61] - The Trauma franchise is performing well, with strong growth from the EVOS plating system, though competitive activity is expected to increase [67][68] Question: Destocking impact in China and inventory visibility [92] - The company has reasonable visibility into distributor inventory, with destocking expected to continue through Q4 and into the first half of 2025 [93][94] Question: Assessment of the 12-Point Plan and potential strategic pivots [96] - The 12-Point Plan remains on track, with significant progress in operational metrics and cost savings, though China headwinds have impacted financial results [99][101] Question: ASC performance and pricing dynamics in the U.S. [115] - The company is performing well in ASCs, with low double-digit penetration in knees, though pricing sensitivity is higher in this channel [119][122] Question: SKU rationalization and product family consolidation [116] - The company has made progress in SKU rationalization, with a 40-45% reduction in SKUs, and aims to consolidate knee platforms over time [124][125] Question: Knee business growth expectations and hip business outlook [129] - The U.S. knee business is expected to return to market growth by the second half of 2025, while the hip business remains strong with new product launches [131][132] Question: Early feedback on RENASYS EDGE rollout [130] - Early feedback on RENASYS EDGE has been positive, with expectations for continued growth in 2025 [134]

Smith+Nephew (LSE: SN, NYSE: SNN), the global medical technology company, is proud to announce that its RENASYS EDGE Negative Pressure Wound Therapy (NPWT) System has won the Red Dot Award for Design Concept 2024 in the Medical Devices and Technology Category, recognizing its intuitive pairing of NPWT housed in a patientfriendly design. The Red Dot Awards celebrate new innovations and groundbreaking designs, with recipients ranging from concepts and prototypes to full Ready For Market products. Launched in ...

Company Developments - Smith & Nephew (SNN) has signed a co-marketing agreement with JointVue for the OrthoSonic 3D Surgery Planning Technology, the only ultrasound device for 3D preoperative planning currently available [1] - JointVue's technology enables personalized surgical plans using SNN's CORI Surgical System for robotic-assisted knee arthroplasty, potentially improving patient satisfaction and operating room efficiency [2] - Following the announcement, SNN shares increased by 1.2% to $28.62 [3] - The integration of JointVue's technology is expected to enhance the imaging modalities available for pre-operative robotic planning, catering to the growing Ambulatory Surgery Center (ASC) market [7] Market Trends - The demand for robotic-assisted knee surgery solutions is increasing, driven by the need for personalized surgical approaches and advanced planning tools [4] - SNN shares have risen by 20.3% over the past six months, outperforming the industry’s 13.1% increase and the S&P 500's 15.9% rise [5] - The global surgical robots market is projected to grow at a rate of 9.5% from 2024 to 2030, with a current market size of $3.92 billion [10] Industry Insights - Factors driving market growth include a shortage of physicians, increased adoption of automated surgical instruments, and a rise in bone degenerative diseases leading to more hip and knee replacement surgeries [11] - The combination of JointVue's OrthoSonic technology with SNN's CORI Surgical System is positioned as an ideal solution for ASCs, where operating room space is often limited [5][6]

Smith & Nephew SNATS (SNN) recently launched its LEGION Hinged Knee System, which incorporates its proprietary OXINIUM Technology. The launch marks a significant advancement in the field of knee revisions, with the new system designed to improve the outcomes for patients requiring complex knee surgeries. The LEGION Hinged Knee System leverages the benefits of OXINIUM (oxidized zirconium), a material known for its superior wear resistance and biocompatibility, offering enhanced longevity for implants. This b ...

Patented technology further personalizes total knee arthroplasty for surgeons and patients Smith+Nephew (LSE:SN, NYSE:SNN), the global medical technology company, today announces it has signed a co-marketing agreement with JointVue for its patented OrthoSonic™ 3D Surgery Planning Technology – the only ultrasound device currently on the market to deliver 3D preoperative planning. JointVue's technology allows surgeons using Smith+Nephew's CORI◊ Surgical System for robotic-assisted knee arthroplasty to create ...

Smith & Nephew SNATS (SNN) recently announced the completion of the first surgery case using its latest CATALYSTEM Primary Hip System. The first surgical procedure using the CATALYSTEM System was completed in the second week of September by three prominent orthopedic surgeons — Dr. Thorsten Seyler of Duke University, Dr. George Haidukewych of Orlando Health, and Dr. Ran Schwarzkopf of NYU Langone Health. The CATALYSTEM Primary Hip System makes use of the exclusive, patent-pending ACCUBROACH Technology, whic ...