| Type | Public limited company |
|---|---|
| Traded as | LSE: SN. NYSE: SNN |
| Industry | Medical devices |
| Founded | 1856 (Kingston upon Hull) |
| Headquarters | London, United Kingdom |
| Key people | John Buchanan, Chairman David Illingworth, CEO |
| Revenue | $3,962 million (2010)[1] |
| Operating income | $920 million (2010)[1] |
| Net income | $615 million (2010)[1] |
| Employees | 10,172 (2010)[1] |
| Website | Smith & Nephew plc |
Smith & Nephew plc (LSE: SN.) is a global medical devices company headquartered in London, United Kingdom. It is the world's largest producer of arthroscopy products, second-largest producer of advanced wound management products, third-largest producer of trauma and clinical therapy products and fourth-largest producer of orthopedic reconstruction products.[2] It has operations in 32 countries and its products are sold in over 90 countries.[1]
Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It has a secondary listing on the New York Stock Exchange.
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The Company was founded in 1856 by Thomas James Smith of Kingston upon Hull who went into business as a dispensing chemist.[3] A few months before his death in 1896, Smith was joined by his nephew, Horatio Nelson Smith, and the business became known as T.J. Smith and Nephew.[3]
In 1928 the Company developed the wound management product Elastoplast. By 1977 the Company acquired the pump manufacturer Watson-Marlow Pumps, before selling it to Spirax-Sarco Engineering in 1990.[4] In 1986 it went on to acquire Richards Medical Company, a US specialist in orthopaedic products for £201 million.[3]
In 2002 the Company acquired Oratec Interventions, a surgical devices business, for $310 million.[5] It went on to buy Midland Medical Technologies, a hip resurfacing business, for £67 million in 2004.[6]
The Company acquired Plus Orthopedics, a Swiss orthopedics business, for US$889 million in April 2007[7] and BlueSky, a US wound care business, for $110 million in May 2007.[8]
In September 2007 Biomet Inc., DePuy Orthopaedics Inc. (part of Johnson & Johnson), Smith & Nephew PLC and Zimmer Holdings Inc. entered into settlement agreements, under which they agree to pay $300 million in total, adopt industry overhauls and undertake corporate monitoring to avoid criminal charges of conspiracy.[9]
The company operates in three market segments through separate "global business units" under the Smith & Nephew brand name:
Smith & Nephew has a track record of bringing innovative new products to market that provide better clinical outcomes for patients and save costs for healthcare providers. This is the primary focus of its fourth business unit, Biologics.
The company's business strategy is based on researching, developing, manufacturing and marketing technically innovative and advanced medical devices. In 2008 it invested $152 million in its highly regarded research and development activities – a figure that is currently around 4% of sales. The Biologics business unit, headquartered in North Carolina in the US, has strategic responsibility for product innovation and development and serves the needs of the remaining business units. The company's direct contacts with healthcare providers are a vital link in the chain. Clinicians' views of their present and future needs provide essential impetus for Smith & Nephew's research work.
The company has three focus areas of cross-business research: novel bioresorbable polymers, tissue or cell engineering, and non-invasive stimulation. Scientific Review Boards, comprising eminent academic scientists and medical professionals, provide independent assessments of the quality of the science and engineering in Smith & Nephew's business unit programmes and guidance on emerging science as necessary.
Recent awards include: