Michel Orsinger appointed Chief Operating Officer for Synthes, Inc.
Third quarter sales growth of 18.7%
Philadelphia (PA)/USA and Oberdorf/Switzerland, October 14, 2004Synthes, Inc. announced today that Mr. Michel Orsinger has been appointed Chief Operating Officer of Synthes, Inc. Mr. Orsinger will report directly to Mr. Hansjörg Wyss, Chairman of the Board of Directors and Chief Executive Officer of the company. Mr. Orsinger brings to Synthes an extensive background and a great deal of experience in the healthcare industry, having most recently spent ten years with Novartis in various top management positions.
Synthes pro forma sales growth of 18.7% and 21.3% for third quarter and nine-months year-to-date, respectively (16.5% and 18.2%, respectively, in local currencies continuing operations) driven by new products.
Synthes consolidated sales were $451.8 million for the third quarter and $1,309.9 million for the nine-month year-to-date period in 2004. Third quarter and nine-month year-to-date sales growth versus prior year is 42.9% and 44.2%, respectively (38.8% and 39.5%, respectively, in local currencies continuing operations). Pro-forma consolidated sales were $451.8 million for the third quarter and $1,334.9 million for the nine-month year-to-date period in 2004. Third quarter and nine-month year-to-date sales growth versus prior year is 18.7% and 21.3%, respectively (16.5% and 18.2%, respectively, in local currencies continuing operations).
Key Figures(unaudited)
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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 mainly driven by continued market acceptance of several new products. Synthes Spine also announced the clearance by the FDA of the patented Vertical Expandable Prosthetic Titanium Rib (VEPTR) device as a Humanitarian Device Exemption (HDE) for the treatment of Thoracic Insufficiency Syndrome in children.
Cranio-maxillofacial (CMF) division’s growth continues to outpace the market due to the industry-leading service levels delivered through the largest dedicated CMF sales organization. Third quarter new products in neurosurgery, specifically Patient Specific Implants, and a new mandible trauma Ex Fix product line are strong additions to the product portfolio.
Merger control proceedings in Germany resolved
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. In an agreement reached October 1, 2004, between Synthes and the Bundeskartellamt, this dispute was resolved following the sale of the German Osteosynthesis operations of former Mathys Medical to Auriga Medical Products GmbH. Auriga has been appointed the exclusive Synthes distributor for Northern and Eastern Germany thereby enabling the entire German market to receive delivery of topquality products under the Synthes® brand.
Synthes added to the Swiss Market Index (SMI)
Effective October 1, 2004, Synthes was included for the first time in the Swiss Market Index (SMI). Synthes shares are now traded on virt-x, the SWX's blue chip trading platform in London.
Integration of Mathys Medizinaltechnik AG
The integration continues to be ahead of schedule. Global integration teams are in place, goals have been defined and project activities are monitored and communicated company wide on a regular basis.
Synthes: A leading orthopedic trauma company
Synthes is a leading provider of instruments, implants and power tools for the orthopedic trauma market. The company competes throughout the world. The company develops, manufactures, and distributes products for the surgical treatment of bone fractures, craniomaxillofacial trauma or deformities, and a full range of products and systems for spine surgery.
For further information please contact
Peter Fehlmann, Investor Relations, Synthes, Inc.
Phone: +41 32 720 48 10 , Fax: +41 32 720 48 11
e-mail: ir.info@synthes.com