Smith & Nephew plc · LSE:SN.
Smith & Nephew — 2007 American Academy of Orthopaedic Surgeons (AAOS) Analyst Meeting
40 slides from Smith & Nephew's conference presentation, Feb 14, 2007
Slide 1: 2007 American Academy of Orthopaedic Surgeons
2007 American Academy of Orthopaedic Surgeons Welcome to the Smith & Nephew Analyst Meeting February 14th 2007
Slide 2: Forward looking statements
Forward looking statements This presentation contains certain "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. In particular, statements regarding expected revenue growth and trading margins discussed under "Outlook" are forward- looking sta
Slide 3: Today's agenda
Today’s agenda • Introduction David Illingworth • Orthopaedic Reconstruction David Illingworth/Todd Durniak – BHR™ surgeon perspective Dr Kurt Rathjen – BHR patient perspective Cory Faulk • Orthopaedic Trauma & Clinical Therapies Mark Augusti – TRIGEN™ INTERTAN™ Nail – surgeon perspective Dr Toney R
Slide 4: Business highlights Q4 2006
Business highlights Q4 2006 • Group revenue growth up 11% to $771m • Trading profit increased 17% to $183m • Good performance across all divisions • Reconstruction revenue grows with added momentum at 15% • Trauma revenue growth improves again to 17% • Endoscopy achieves revenue growth of 9% • Advan
Slide 5: Orthopaedic Reconstruction
Orthopaedic Reconstruction AAOS 2007 We never stop thinking about how people move
Slide 6: 2006 – Outpacing the Market
2006 – Outpacing the Market Global Market = $9.9 billion, Smith & Nephew Q4: Up 7.0% for Hips/Knees WW Knee growth: 12.5% Hips, $4,260 US Knee growth: 9.9% , 43% WW Hip growth: 19.3% Knees, US Hip growth: 23.6% $5,030 50% WW growth 15.3% Cement, $353 , 4% Shoulders, The world’s fastest growing $330
Slide 7: 2007: Building on a Solid Foundation
2007: Building on a Solid Foundation • 2007 Marks 10 Years of Clinical Results – GENESIS™ II Knee – PROFIX™ Knee – SYNERGY™ Hip – BHR • Commitment to Innovation – OXINIUM™ Oxidized Zirconium – Advanced Biomechanics • Continued Investment in Global Sales Force ™Trademark of Smith & Nephew. Reg. US Pa
Slide 8: 2007 Orthopaedic Reconstruction
2007 Orthopaedic Reconstruction • Focus on innovative products driving leadership in the Active Segment – Goal: Be the brand preferred by active, informed hip and knee patients – #1 in Hip Resurfacing – The OXINIUM™ technology advantage for Knees and Hips • Building on the Group’s strengths in Activ
Slide 9: Knee/Hip Demographics are Getting Younger
Knee/Hip Demographics are Getting Younger Primary 39% Revision 40% 0 100,000 200,000 300,000 400,000 500,000 65+ <65 Primary 40%40% Revision 35% 0 100,000 200,000 300,000 400,000 500,000 65+ <65
Slide 10: 2006 – A year of innovation
2006 – A year of innovation LEGION™ Revision - Full Year ANTHOLOGY™ Hip Stem - Full Year EMPERION™ Hip – Q3 2006 JOURNEY™ Knee – Q2 2006 BHR™ System US - Q2 2006 Total Sales up approx 9% YoY New Product Sales – 16% of total Fastest growing company in the Active Space ™Trademark of Smith & Nephew. Ce
Slide 11: New for 2007: JOURNEY DEUCE Knee
New for 2007: JOURNEY™ DEUCE™ Knee • Revolutionary solution to treat the early arthritic knee • Resurfaces the medial and patella-femoral compartment • Retains the ACL, PCL and lateral compartment • Minimally invasive surgical approach ™Trademark of Smith & Nephew. Certain marks Reg. US Pat. & TM Of
Slide 12: BIRMINGHAM HIP Resurfacing Accelerates in US
BIRMINGHAM HIP™ Resurfacing Accelerates in US • US Launch ahead of expectation • Over 400 trained surgeons to date in the US • Over 1000 procedures carried out • Alternative for the young, active patient • High Patient and Surgeon demand • Proven low wear, range of motion, highly stable • Deepest cl
Slide 13: US Surgeon Perspective on BHR
US Surgeon Perspective on BHR™ Kurt Rathjen, MD Dallas Hip and Knee Surgery Dallas, Texas
Slide 14: The BHR Patient Perspective – Cory Foulk
The BHR™ Patient Perspective – Cory Foulk Endurance and ultra-distance triathlete for over 20 years. Over 30 Ironman-length and over 12 Ultraman (320 mile) triathlons completed before surgery. Arthritis inhibited athletic performance and normal activities. Received BHR 12/21/05 • Marathon in March •
Slide 15: Come See Our Innovation- Booth 1200
Come See Our Innovation- Booth 1200 • See why JOURNEY™, LEGION™, and DEUCE™, and BHR™ are changing arthroplasty • Learn why JOURNEY addresses fit JOURNEY™ DEUCE™Knee and function for males and BIRMINGHAM HIP™ Resurfacing females. • Step into our Technology Suite to view our active technologies • See
Slide 16: Orthopaedic Trauma & Clinical Therapies
Orthopaedic Trauma & Clinical Therapies Mark Augusti President
Slide 17: Trauma & Clinical Therapies 2006 Global Market
Trauma & Clinical Therapies 2006 Global Market $4.6 Billion 0% Outpatient • Fixation Growth 11-12% Spine 10% Ex Fix • Clinical Therapies Growth 6-7% 11% • Outpatient Spine 20+% In Fix 54% Drivers JFT • Aging Population & Active 20% Lifestyles Bone Stim 5% • Surgeon Specialization • Pain Management
Slide 18: Trauma & Clinical Therapies 2006 S&N Performance
Trauma & Clinical Therapies 2006 S&N Performance • Strong Revenue Growth 13% – Trauma Implants 9% – Long Bone Stimulation 19% PERI-LOC™ Wrist plate – Joint Fluid Therapy 25% • Expanded Product Portfolio – PERI-LOC™ UE Great reception; completes system – TRIGEN™ META™ & INTERTAN™ Advanced nailing tec
Slide 19: TRIGEN INTERTAN Nail
TRIGEN™ INTERTAN™ Nail • Hip fractures are the most common fracture type requiring hospitalization, about 300,000 annually in US (more than 5,000 per week) • Launched INTERTAN™ in Q2 2006, more than 1,500 cases to date
Slide 20: Dr. Toney Russell on INTERTAN
Dr. Toney Russell on INTERTAN™ • Outcomes have room for improvement* – Only 25% of hip fracture patients will make a full recovery – 40% will require nursing home care – 50% will need a cane or walker – 24% of those over age 50 will die within 12 months • Innovative two-screw configuration – Secures
Slide 21: Failed Single-Screw Case: Intertroch Fracture
Failed Single-Screw Case: Intertroch Fracture Pre-Op 6 Weeks, Post-Op, 2 Years, Wheelchair, Wheelchair Difficult THA Medical literature shows no difference between a side plate and an IM device regarding the risk of complications of the single-screw design.
Slide 22: The INTERTAN Difference: Mechanical Stability
? The INTERTAN™ Difference: Mechanical Stability Single-Screw Construct INTERTAN 13,000 Cycles 100,000 Cycles
Slide 23: The INTERTAN Difference: Patient Outcome
The INTERTAN™ Difference: Patient Outcome 86-Year-Old Female, Home Discharge in 3 days, Walking at 3 Weeks Pre-Op Day 2, Post-Op, Medialization
Slide 24: The INTERTAN Difference: Health Economics
The INTERTAN™ Difference: Health Economics • A mere 10% reduction in complications from hip fracture repair at one year post-op could save the US health care system $270M per year • Reduction of: – Post-Op Hospital Stay – Nursing Home Discharge – Additional Care
Slide 25: Q-MED's DUROLANE
Q-MED’s DUROLANE ® • Only single-injection JFT available in world for knee and hip OA* • In June 2006, we signed a joint product development agreement and acquired global distribution rights • Sales transition (Europe and Canada) completed in Sept 2006; boosted OUS CT growth by 64% • Will appeal to
Slide 26: What to Watch For in 2007
What to Watch For in 2007 • New trauma product success worldwide – TRIGEN™ INTERTAN™ and META™ – PERI-LOC™ LE and UE – CAPTION™ Disposable Platelet Concentrator • Continued strong Clinical Therapies performance – Thriving SUPARTZ™ and EXOGEN 4000+™ businesses – DUROLANE , the only single injection J
Slide 27: Randy Johnson believes in SUPARTZ
Randy Johnson believes in SUPARTZ ™ Now Pitching for Smith & Nephew • 1995: American League Cy Young Award • 1999: National League Cy Young Award • 2000: National League Cy Young Award • 2001: National League Cy Young Award • 2001: World Series Most Valuable Player (tied) • 2002: National League Cy
Slide 28: Outpatient Spine Fits With Clinical Therapies
Outpatient Spine Fits With Clinical Therapies • Move leverages CT’s reimbursement team and sales force – New CPT reimbursement code as of January 1, 2007 • Call points are synergistic with CT business model – IDET is performed by physiatrists, pain management specialists, and interventional radiolog
Slide 29: Trauma & Clinical Therapies Summary
Trauma & Clinical Therapies Summary INNOVATION Smith & Nephew’s Unique Sales Coverage Trauma Clinical Therapies Point-of-Care Service Operating Room Surgery Center Clinic & Office ACTIVE AGING LIFESTYLES OP OA
Slide 30: Thank You
Thank You
Slide 31: Endoscopy
Endoscopy Mike Frazzette President
Slide 32: Global Arthroscopy Market (est)
Global Arthroscopy Market (est) SNN 23.3% Arthrotek 3.4% Others 9.1% Arthrocare 8.1% Arthrex 19.3% Stryker 10.9% Linvatec 8.8% Mitek 17.2% Market Drivers Longer living, more active population Patient preference for endoscopic procedures Improving payor outlook driven by supporting clinical outcomes
Slide 33: ENDOSCOPY – 2006 performance
ENDOSCOPY – 2006 performance H2 growth momentum Strong, sustainable performance in arthroscopic repair market • CALAXO™ Osteoconductive Interference Screw • OBI acquisition • Shaping and driving arthroscopic hip market – early stages – First labral repair device for the hip; BIORAPTOR™ Suture Anchor
Slide 34: 2006 Key Product Launches
2006 Key Product Launches KNEE DIGITAL OR HIP CALAXO™ CONDOR™ Hip Positioning System Osteoconductive Control System Advanced simplicity for Hip Interference Screw Medical device control arthro procedures Promotes bone regrowth in A/V distribution Attaches to standard OR tables ONE year Resorbable AC
Slide 35: 2007 Focus
2007 Focus Strengthen leadership position through improved organizational focus Feed product pipeline – key new knee, shoulder and hip repair products Next generation camera – true high definition Leverage new pump/new hand piece to drive competitive conversions Continued investment in Surgeon Educa
Slide 36: Key "new" products showcased at AAOS
Key “new” products showcased at AAOS KNEE SHOULDER ACUFEX™ Anatomic ACL (AACL) KINSA™ Suture Anchor instrument set Self-locking sliding knot encased in anchor Consistent and reproducible tunnel drilling Fixation adjusted by pulling suture, not Expanded CALAXO™ Screw sizes sinking anchor deeper into
Slide 37: Key "new" products showcased at AAOS
Key “new” products showcased at AAOS HIP Visualization Lateral Hip Distractor HD Video Platform Greatest range of motion available True HD 3CCD Head for accessing hip joint True HD Video Processor Simple design, easy to use, cost HD VideoArthroscopes effective HD Couplers 30% of Hip arthroscopic TRU
Slide 38: Wrap up
Wrap up Dave Illingworth Chief Operating Officer
Slide 39: Smith & Nephew at AAOS
Smith & Nephew at AAOS • Orthopaedic Reconstructive, Trauma & Clinical Therapies –Booth Number: 1200 Hall B1 • Endoscopy –Booth Number: 1332 Hall B1
Slide 40: We are smith&nephew
>KWe are smith&nephew
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