Synthes-Stratec announces fourth quarter and calendar year 2003 sales: Accelerated sales growth continues for the fourth quarter 2003
Oberdorf/Switzerland, January 21, 2004
Synthes-Stratec’s consolidated sales were $321.0 million for the fourth quarter of 2003 and $1,229.1 million for the twelve month period. Fourth quarter sales growth versus prior year is 21.5% (18.1% in local currencies from continuing operations). The full year sales growth for 2003 is 20.8% (18.5% in local currencies from continuing operations).
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| 1 | Local currency – 2003 results translated at 2002 foreign exchange rates excluding the divested Prosthetics and Medivision businesses. |
Business performance
As a leader in the trauma segment of the orthopedic market, we continued to increase our market share by growing the business at a significantly higher rate than the orthopedic trauma market. This growth was generated in large part by sales of our unique Locking Compression Plate (LCP) systems, and our latest intramedullary nail product for proximal femur fractures, the Trochanteric Fixation Nail (TFN).
Additionally, Norian SRS was successfully introduced and with its unique compressive strength characteristic makes it the preferred choice for surgeons as a bone void filler.
The Spine division continued to experience significant growth for the quarter and the full year. Several successful product launches including the interbody fusion and thoracic – lumbar devices contributed to this growth. The Spine division continues to grow at market rates.
Cranio-maxillofacial division sales for 2003 were above market growth rates. The maxillofacial divisions growth was enhanced by the recently introduced low profile Neuro Fixation System as well as a new bone cement development Norian CRS Fast Set Putty.
Update on the combination with Mathys Medical
On August 13, 2003, Mathys Medizinaltechnik AG (Mathys) and Synthes-Stratec, Inc. announced that they had an agreement to combine the two companies to create a global osteosynthesis medical device company.
Closing of the transaction is subject to a number of conditions, in particular, regulatory approvals. Regulatory approvals have been obtained in the United States of America, Slovakia and Russia, whereas Germany remains outstanding. The inclusion of competitors’ views into the process and the very comprehensive data compilation has delayed a final decision by the Federal Cartel Office. Synthes-Stratec expects a decision during the first quarter of 2004.
Mathys, a family-owned company, has worked closely with the AO/ASIF Foundation (Arbeitsgemeinschaft für Osteosynthese/Association for the Study of Internal Fixation) since 1958, and is comprised of osteosynthesis and prosthetics businesses, with over 1800 employees. In 2002 the osteosynthesis business contributed CHF 383 million in revenues to Mathys. The company designs, manufactures and markets instruments and implants for trauma, spine, cranio-maxillofacial and orthopedic surgeons. Mathys' prosthetics business will not be a part of the combination. Before closing, the Mathys family will transfer all prosthetic operations into an independent company under the name Mathys Ltd. Bettlach. The Dr. h.c. Robert Mathys Foundation will remain an independent research and testing institution located in Bettlach.
Synthes-Stratec, Inc.
Synthes-Stratec, Inc. is a leading 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. The company competes in North and Latin America and parts of Europe.
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