Reading time: 6 minutesThird Quarter 2008
Consolidated sales were US$ 807.7 million Double-digit sales growth was once again achieved across all geographical regions and product groups Accelerated sales growth experienced by Spine globally New product introductions, continued sales force expansion and investments in education and field sales equipment continue to be key contributors to positive results
First Nine Months 2008
Consolidated sales were US$ 2,381.2 million Global Trauma growth remained stable Asia Pacific, "Rest of World" and global Spine accelerated revenue growth Other achievements include ProDisc-C launch in the U.S. and the settlement of the Trochanteric Fixation Nail (TFN) case.
Michel Orsinger, President and CEO of Synthes, commented on the performance: "We are very pleased to have produced another strong quarter of growth which spans all regions and product groups. Synthes continues to gain global market share driven primarily by new product introductions, a knowledgeable and customer-focused sales force, and high quality educational activities."
REGIONAL PERFORMANCE (Third Quarter 2008)
The company achieved double-digit sales growth in North America during the third quarter. The Spine product group was a major contributor to the region's growth primarily as a result of new product introductions and accelerated sales force expansion. Trauma grew at a solid rate in Q3 2008, versus a strong Q3 2007 base.
Europe continued to post strong double-digit sales growth driven primarily by volume growth. The LCP platform for Trauma and the Pangea system for Spine continued to be strong performers and contributors to success. CMF maintained sales growth momentum, primarily due to mid-face and neurosurgery products. Italy, Spain, France and Austria were key growth contributors and realized significant gains over the previous year.
Asia Pacific continued to achieve robust double-digit growth across all product groups. The region's high-teens growth rate was fueled by strong performances in all major countries, including China and India. Also, Japan grew double-digit despite the impact of a government-mandated price cut in April 2008.
Rest of World growth was positively impacted by additional shipments of a tender order to the Middle East. Latin America also continued with strong performance, posting attractive double-digit growth rates for all three product groups.
PRODUCT GROUP DEVELOPMENTS (Third Quarter 2008)
TRAUMA Trauma's growth in the third quarter was driven by the TFN (Trochanteric Fixation Nail) and the PFNA (Proximal Femoral Nail), both femoral nails for the treatment of common fractures of the upper leg. The ongoing expansion of the LCP (Locking Compression Plate) platform continues to contribute to growth.
Significant new products launched in the third quarter include the EPOCA Shoulder Prosthesis (in the U.S.), the LCP Wrist Fusion system and the Headless Compression Screw line extension. The EPOCA Shoulder Prosthesis system is used for hemi and total shoulder arthroplasty and offers multiple implant options for the fixation of the shoulder. The LCP Wrist Fusion system represents an expansion of our locked plating offering. The new Headless Compression Screw line extension increases our offering for the fixation of fractures and non-unions of small bones.
SPINE Synapse, Pangea, Zero-P and SynFix-LR systems were the key contributors to Spine's encouraging performance.
Synapse is a comprehensive set of instruments and implants designed for posterior stabilization of the upper spine. The implants provide the flexibility required to accommodate variations in patient anatomy, therefore, satisfying the preferences of numerous surgeons while simplifying the procedure. Pangea is a pedicle screw system used to stabilize degenerated lumbar spine segments. Zero-P is designed as a zero-profile plate/spacer combination with screws to provide similar stability to a traditional cervical plate and interbody spacer. SynFix-LR, a cage with screws to replace and fuse a diseased intervertebral disc, provides clinical superiority with its unique anterior- only access.
Additionally, the ProDisc®-Total Disc Replacement systems (both lumbar and cervical) continued to gain traction in the U.S. market.
CMF CMF produced high double-digit growth in Europe, Asia Pacific and "Rest of World". MatrixNEURO and MatrixMIDFACE continued to gain clinical acceptance and fuel growth for this product group. MatrixNEURO is a cranial plating system that offers a complete line of plates, screws and instrumentation designed specifically for neurosurgical fixation, and MatrixMIDFACE is a comprehensive plating system for the midface and craniofacial skeleton.
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.
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.
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Source: Synthes, Press release