Synthes continues accelerated sales growth for the 1st quarter 2004
Philadelphia (PA)/USA and Oberdorf/Switzerland, April 22, 2004
Synthes consolidated sales were $420.6 million for the first quarter of 2004, an increase of 45.3% versus the same quarter last year (39.0% in local currencies from continuing operations). Pro-forma consolidated sales were $445.5 million for the first quarter of 2004, an increase of 26.3% versus the same quarter last year (21.0% in local currencies from continuing operations). Excluding the effect of the Mathys acquisition, sales increased by 25.9% for the first quarter of 2004 versus the same quarter last year (22.4% in local currency from continuing operations).
Consolidated Sales¹
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| 1 | Includes Mathys sales for February and March 2004 only. |
| 2 | Local currency – 2004 results translated at 2003 foreign exchange rate. |
Pro-Forma¹ Consolidated Sales
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| 1 | Includes Mathys sales as if the merger took place on January 1, 2003. |
| 2 | Local currency – 2004 results translated at 2003 foreign exchange rate. |
Synthes grew in all business areas
The sales increase for trauma products was significantly higher than market growth fueled by the continued strong sales of the Locking Compression Plate (LCP) plate and screw system and the Trochanteric Fixation Nail (TFN)
The Spine division continues to experience strong growth across all product segments. Growth was driven by market acceptance of several new products introduced in late 2003. In particular, cervical sales growth reflects the success of the new top loading Axon system. There is a continued and strong demand for the Click’X system which is an excellent procedure for the treatment of degenerative disc disease.
Cranio-maxillofacial division sales for the first quarter exceeded the prior year due to continued growth and expansion of the sales force.
Merger with Mathys Medizinaltechnik AG, closed
The merger between Synthes and Mathys Medizinaltechnik AG (Mathys) announced on August 13, 2003 was closed on February 6, 2004, with the exception of their operations in Germany. On March 29, 2004 Synthes was informed by the German competition authority (Bundeskartellamt) that the Bundeskartellamt has decided to prohibit the merger between Synthes and the Osteosynthesis business of Mathys. Although the decision prohibits the merger in its entirety, it will only have an effect on the German operations. Synthes is carefully analyzing the decision and weighing its options including the possibility of appealing the prohibition decision.
Acquisition of Gelifex, Inc.
On March 31, 2004, Synthes acquired Gelifex, Inc. (Gelifex), an early stage technology company. Founded in June 2002, Gelifex is developing two hydrogels which, when implanted or injected into the space between two vertebrae, is expected to restore motion and alleviate pain to patients suffering from degenerative disc disease. This novel technology will restore function to the spine and retain range of motion with less surgical trauma than vertebral fusion. Nucleus replacement promises to follow total disc replacement as the next great step forward in improving patient outcomes in spine surgery and is a significant step toward Synthes leading in the field of Spine non-Fusion.
Synthes Inc. announces Acquisition of the P2P Minimally Invasive Spine System
The Point-2-Point Minimally Invasive Spine System, originally developed by KISS Medical, LLC will allow Spine Surgeons the ability to place anterior and posterior instrumentation through a small, minimally invasive posterior approach. The P2P system integrates with Synthes proven instrumentation. Acquisition of this system will facilitate Synthes entry into this exciting new area in Spine Surgery.
"Synthes has a long standing tradition of developing products which minimize the impact of surgery because the less traumatic approach reduces recovery times and improves patient outcomes," stated Michael Huggins, President of Synthes Spine, "We are extremely pleased to add the P2P technology to our portfolio and excited about the improvements in patient outcomes that the system is expected to deliver."
Dr. Jeff Larson, a Spine Surgeon from Coeur d’Alene, ID and co-developer of the P2P system, stated, "The clinical possibilities of the Synthes P2P System are substantial! The system overcomes the limitations of existing minimally invasive spine systems. I am thrilled that Synthes, with their longstanding leadership in spine surgery principles, is the company to launch and sell it."
KISS Medical, LLC was founded by Jeff Larson, M.D. and Scott Schorer.
Synthes is a leading global medical device company specializing in the development, manufacturing and marketing of orthopedic instruments and implants. Applications include surgical treatment of bone and maxillofacial trauma or deformities and a full range of products for spine surgery.
For further information please contact
Peter Fehlmann, Investor Relations, Synthes-Stratec, Inc.
Phone: +41 61 965 63 39, Fax: +41 61 965 66 06
e-mail: ir.info@synthes.com