Smith & Nephew discussed its second-quarter financial results last week, and the U.K. company had some good results. During the quarter, the company generated revenues of a bit under $1.08 billion, a reported growth of 12% compared with $959 million last year.
The company's orthopedics unit saw revenues grow by 4% in the quarter to $588 million, even as its rivals--which include Stryker--remained flat. And as Reuters notes, the knee franchise really helped this division, especially since its knee products offer a 30-year guarantee.
The endoscopy unit had its revenues grow 5% to $231 million, but Europe was flat because of the greater impact from healthcare system austerity measures, the company says in a statement. Meanwhile, the company's advanced wound management grew revenues by 8% to $258 million, outperforming the estimated global market rate of 3%.
The company also has put a new strategic framework into place. In the established markets, the company will improve efficiency "to liberate resources." These resources will be reinvested to capture opportunities in emerging markets and drive product development. The company has begun implementing this strategy with organizational changes, bringing its orthopedics and endoscopy businesses under one management and creating the advanced surgical devices division to sit alongside its advanced wound management division. These two divisions will serve the established markets and will support its international markets and emerging markets organizations. Smith & Nephew is focusing its eye on China, India, Brazil and Russia as areas of particular focus.
Smith & Nephew will increase spending on R&D by $300 million and invest $500 million in those four countries, said recently installed CEO Olivier Bohuon, as quoted by the Telegraph.
"After four months as CEO, two things are certain in my mind," explains Bohuon in statement. "The first is that Smith & Nephew has a great foundation with a track record of successful innovation, a strong focus on customers, and talented people. The second certainty is that we can be even better."
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