Synthes with continued strong growth in third quarter 2006
Solothurn/Switzerland, October 18, 2006
Synthes 2006 consolidated sales for the third quarter grew by 15.7% (14.5% in local currency) to $595.1 million. The year-to-date September sales of $1,762.7 million represent an increase of 14.4% (14.9% in local currency).
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Continued growth in all product lines driven by successful product introductions and continued global expansion of a dedicated sales force
All three product lines (Trauma, Spine & CMF) experienced double-digit sales growth for the nine month year-to-date period of 2006 versus prior year. Trauma growth was primarily due to the continued expansion of Locking Compression Plate (LCP) products. Since 2002 Synthes has introduced 27 different LCP product lines and during the third quarter 2006 continued to expand existing systems. Some third quarter product introductions in Trauma include the LCP Anterolateral Distal Tibia Plate and the 3.0mm Headless Compression Screw. This September Synthes also launched the fourth Expert Nailing System, the Lateral Entry Femoral Nail (LFN). The Trochanteric Fixation Nail (TFN) will continue to be sold and promoted for all indications with the exception that it will no longer be promoted for active compression of intertrochanteric fractures. The TFN and the already introduced Expert Intramedullary Nail systems are other growth drivers for our Trauma business.
Spine’s growth was realized over a broad range of products including the Interbody Fusion, Anterior Thoracolumbar, Cervical and Biomaterials product portfolios. An important event was the FDA approval of the PMA for ProDisc-L in August 2006. Synthes has subsequently initiated a controlled roll-out. The distribution of the product is intrinsically tied to a three-tier education program compulsory for every future user of ProDisc and addresses not only all didactics and surgical techniques, but also focuses on proper patient selection. The FDA IDE-study results have shown a reduction in patients’ pain and disability as well as the maintenance of normal segmental motion. CMF’s continued strong sales growth in all regions was fuelled by solid core fixation growth, especially for mandible and neuro indications.
Third quarter 2006 regional sales performance
North America’s and Europe’s third quarter 2006 sales continued at a pace well above market growth. Asia Pacific’s third quarter sales performance fell below the rest of the company’s growth rate. Synthes continues to believe in the growth potential Japan and the other Asian countries offer and will maintain its level of investments for sales force expansion and new product introductions in that region.
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.
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