Synthes Delivers a Strong Start in First Quarter 2008 with Sales Growth of 18.7% (13.4% in local currencies)
West Chester (PA), USA, April 15, 2008
Synthes (SWX: SYST.VX) today announced its First Quarter 2008 sales results.
- Consolidated sales increased by 18.7% (13.4% in local currencies) over prior year to US$ 781.0 million
- Double-digit sales growth was achieved in all divisions and major geographical regions
- An expanded product offering contributed to the continued robust sales growth
- Strong sales performance was further fueled by sales force expansion and an increased course offering
- Synthes settled the Trochanteric Fixation Nail patent dispute with Smith & Nephew, allowing Synthes to freely promote its complete TFN product line
- ProDisc®-C Total Disc Replacement was launched in the US
- Synthes initiated the rollout of N Spine products ("N-Hance") in the US
- Synthes acquired Innomedic, a German company specializing in software development and computer science for medical technology applications
Michel Orsinger, President and CEO of Synthes, comments on the first quarter 2008 sales performance: "We are pleased with the strong performance, including accelerated growth in our US Spine business and in Asia Pacific. Our recent product introductions and strong product pipeline will continue to contribute to our future revenue growth."
Sales Results
|
In US$ millions |
1st Quarter 2008 (January - March) | |||
|
Consolidated Net Sales |
2008 |
2007 |
% Change (in US$) |
% Change (in local currencies)1 |
|
North America |
471.9 |
417.6 |
13.0% |
12.5% |
|
Europe |
191.1 |
148.8 |
28.4% |
14.8% |
|
Asia Pacific |
75.5 |
56.8 |
32.8% |
18.7% |
|
Rest of the World |
42.5 |
34.8 |
22.4% |
9.3% |
|
Total |
781.0 |
658.0 |
18.7% |
13.4% |
1) Local currencies: 2008 results translated at 2007 foreign exchange rates
Regional Highlights
North America's solid performance included double-digit sales growth in all divisions. Trauma continued to be the main growth contributor. Spine's performance was particularly strong as the benefits of a strengthened portfolio are beginning to be realized.
Europe realized attractive double-digit growth, partially due to a strong winter season (resulting in increased incidences of weather-related accidents). The UK and Eastern Europe accomplished significant gains, primarily fueled by the rollout of new products. Europe's growth rate was achieved despite limited opportunity for price increases.
Asia Pacific achieved robust growth in all divisions. Japan gained momentum, primarily due to new product introductions in Trauma and Spine. China maintained its strong momentum, also contributing to the region's high-teens percent sales growth. The Asia-specific intramedullary nail PFNA, a key product within the region, continued to gain surgeon acceptance.
In Rest of World, Latin America performed strongly at a high double-digit growth rate, supported by Columbia and Mexico.
In the first quarter 2008, Synthes did not benefit from significant tender business from the Middle East, compared to the first quarter 2007.
Product Highlights
TRAUMA
Significant growth contributors in Trauma in the first quarter included the TFN (Trochanteric Fixation Nail) and the PFNA (Proximal Femoral Nail), both femoral nails for the treatment of common fractures (upper leg). The LCP (Locking Compression Plate) platform also continued to add to growth including the LCP Olecranon Plates (elbow) and the LCP Volar Column Distal Radius Plates (wrist).
New Trauma product launches in the first quarter included the Expert Tibia Nail with Proximal Bend and the EPOCA Shoulder Prosthesis.
The Tibia Nail with Proximal Bend is intended to stabilize fractures of the proximal and distal tibia and the tibial shaft, and has expanded the current line of Tibia Nails. The EPOCA Shoulder Prosthesis is used to treat complex fractures of the proximal humerus and restores normal shoulder joint function.
SPINE
Synapse, Pangea and SynFix-LR systems were key contributors to the Spine division's growth. Synapse is a comprehensive set of instruments and implants designed for posterior stabilization of the upper spine. Pangea, which is a pedicle screw system used to stabilize degenerated lumbar spine segments, continued to gain momentum. Additionally, SynFix-LR, a cage with screws to replace and fuse a diseased intervertebral disc, is still proving its clinical superiority with its unique anterior-only access.
Important launches in Spine included ProDisc®-C Total Disc Replacement in the US and Synex II. Synthes commenced surgeon training and a controlled roll-out of ProDisc®-C in January 2008 and became the first company to offer both a lumbar and a cervical artificial disc replacement on the US market. Synex II is a next generation vertebral body replacement for the thoracolumbar spine with core innovative features such as instrumentation for a minimally invasive approach.
CMF
The CMF division experienced double-digit growth in all regions, with high double-digit growth realized in Europe, Asia Pacific and Latin America. MatrixNEURO, a complete system designed specifically for neurosurgical fixation, was a key growth contributor in the quarter.
MatrixMIDFACE was launched and showed good acceptance. MatrixMIDFACE is an addition to the Matrix platform and is designed for the fixation of the midface and craniofacial skeleton. Both systems are receiving excellent clinical adoption.
Outlook
For 2008, Synthes continues to expect low double-digit sales growth in local currency.
Synthes: A leading medical device company
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.
Financial Analyst Phone Conference
For details about today's Financial Analyst Phone Conference at 10.00 am CEST please refer to the Investor Relations Calendar at http://www.synthes.com/html/index.php?id=7326&L=0.
Image Bank
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For further information please contact
Gilgian Eisner, Investor Relations, Synthes, Inc.
Phone +41 32 720 4745, Fax +41 32 720 4811
Email: ir.info@synthes.com
Restrictions Subject to US Securities Law
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.