Synthes Reports Local Currency Sales Growth of 10.0% for Third Quarter 2009 and Maintains Double-Digit Sales Growth through First Nine Months 2009

 

 

 

Synthes (SWX: SYST.VX) today announced its Third Quarter and First Nine Months 2009 sales results with growth of 7.5% and 5.2%, respectively (10.0% and 10.3%, respectively, in local currency [LC]).

 

 

 

    Consolidated sales of US$ 868.3 million increased by US$ 60.6 million vs. prior year (PY)

    North America sales growth continued to accelerate in spite of ongoing economic challenges

    Asia Pacific maintained strong growth momentum due to solid performance in Japan and developing markets

    «Rest of World» growth slowed due to the absence of significant Middle Eastern tender orders, which favorably impacted previous year's third quarter

    Synthes was awarded a permanent injunction and enhanced damages by a U.S. District Court in the ProDisc®-L patent case against Medtronic

    Synthes entered into a strategic agreement with Kensey Nash Corporation, allowing Synthes to market a unique porcine dermis-based extracellular matrix product

 

 

 

 

    Consolidated sales of US$ 2,504.3 million increased by US$ 123.1 million vs. PY (US$ 244.7 million in LC)

    North America's growth was driven by new products across all product groups and superior customer service from the sales force despite a recessionary U.S. economy

    Europe and Asia Pacific achieved double-digit sales growth in all product groups

 

 

Michel Orsinger, President and CEO of Synthes, comments on the performance:

 

 

	Third Quarter 2009 (July - September)
Consolidated Net Sales (in US$ millions)	2009	2008	% Change (in US$)	% Change (in local currency)*
North America	528.6	481.2	9.8%	10.0%
Europe	198.6	188.6	5.3%	13.4%
Asia Pacific	91.5	75.4	21.4%	19.8%
Rest of World	49.6	62.5	-20.5%	-12.4%
Total	868.3	807.7	7.5%	10.0%

 

	First Nine Months 2009 (January - September)
Consolidated Net Sales (in US$ millions)	2009	2008	% Change (in US$)	% Change (in local currency)*
North America	1,539.9	1,424.7	8.1%	8.5%
Europe	574.6	575.8	-0.2%	14.3%
Asia Pacific	252.9	225.3	12.3%	15.6%
Rest of World	136.9	155.4	-12.0%	3.5%
Total	2,504.3	2,381.2	5.2%	10.3%

* Local currency: 2009 results translated at 2008 foreign exchange rates

 

 

 

North America gained momentum vs. the first half 2009 and achieved low double-digit growth across all major product groups (Trauma, Spine and CMF) despite lower procedure volumes, a more challenging pricing environment and continuing pressure on inventory reduction from our hospital customers. In Trauma, Synthes recorded its highest growth rate of 2009 due to innovative new product introductions and increased volume from its existing high-quality core product portfolio. Spine's performance was again strong as a result of attractive new product introductions and ongoing sales force expansion. Finally, CMF gained momentum from the Matrix product lines (Neuro, Midface and Mandible) and the Thorax product segment.

 

Europe continued to generate double-digit local currency growth across all product groups. Strong focus on sales force expansion, introduction of new products, educational initiatives and the expansion of direct market presence were the biggest contributors to the continued success. In particular, the Variable Angle Distal Radius plate in Trauma, the Vertebral Body Stenting system in Spine and the Matrix product portfolio in CMF were all strong contributors to the third quarter sales growth.

 

Asia Pacific's sales performance achieved double-digit sales growth in all product groups and important markets. China and India both experienced high double-digit growth, and continue to provide a solid foundation for future business as we expand our market presence. The momentum of new product introductions has been maintained across the region. The LCP platform and the PFNA product line continue to be well received by customers.

 

Rest of World growth slowed due to the absence of Middle Eastern tender business, which favorably impacted the third quarter of last year (2008). In Latin America, sales growth was positive, but impacted by delays in tender business and postponement of elective surgeries at some major hospitals. Brazil and Colombia continued to generate high double-digit growth.

 

 

 

Synthes remains focused and committed to its core strategies of launching innovative new products, sales force expansion and education. Synthes expects to maintain its current performance for the balance of the year despite a challenging global economic environment.

 

 

 

Synthes is a leading global medical device company. We develop, produce and market instruments, implants and biomaterials for the surgical fixation, correction and regeneration of the human skeleton and its soft tissues.

 

 

For details about today's Financial Analyst Phone Conference at 2.00 PM CEST please refer to the Investor Relations Calendar on http://www.synthes.com/html/index.php?id=7326&L=0.

 

 

A selection of product and company images can be found on

 

 

 

 

Gilgian Eisner, Investor Relations, Synthes, Inc.

Phone +41 32 720 4745, Fax +41 32 720 4811

Email: investor.relations@synthes.com

 

 

 

Synthes, Inc. management believes certain statements in this media release may constitute "Forward-Looking Statements" within the meaning of the "Private Securities Litigation Reform Act of 1995". These statements include but are not limited to those with respect to the potential for Synthes to offer new products and market existing ones, as well as the expected sales and sales growth of Synthes. These statements are made on the basis of management's views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from those expressed or implied. Such differences may result from the ability of Synthes to successfully develop and introduce new products and services and market existing products and services in a competitive marketplace and changes in the economic conditions that may affect the performance of the operations of Synthes. In addition, changes in competitive conditions and regulatory developments may affect future business performance, and changing market conditions may affect the valuation of Synthes securities.

In addition, it should be noted that past financial and operational performance of the company is not necessarily indicative of future financial and operational performance. Synthes undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

The securities of Synthes have been offered and sold outside the United States and have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("Securities Act"). Such securities may not be offered, sold or transferred in the U.S. or to U.S. Persons (as defined in the regulations of the Securities Act), except pursuant to a registration statement filed under the Securities Act or under an applicable exemption under the Securities Act. Hedging transactions involving such securities may not be conducted unless in compliance with the Securities Act. The Synthes securities are deemed "Restricted Securities" as that term is defined in Rule 144 under the Securities Act.