Regenerative Medicine: Re-Growing Body Parts
MAKOplasty Robotic Knee Surgery
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Synthes 2Q10 Sales Rise 7.4%
Synthes reported a 7.4% rise in sales to $892.2 million for the second quarter of 2010.
A company statement stated that ongoing economic conditions, coupled with pricing dynamics, continued to challenge growth in North America and Europe. Indeed revenue growth was slowest in Europe, only rising 2.6% and 4% in the U.S.
|
Synthes |
2Q10 |
|
|
|
Sales $mm |
% Change |
|
North America |
$531.4 |
up 4% |
|
Europe |
$195.3 |
up 2.6% |
|
Asia Pacific |
$101.6 |
up 21.6% |
|
Other |
$63.9 |
up 39.1% |
|
Total |
$892.2 |
up 7.4% |
Source: Synthes
Spine Challenges
In Europe, the company stated that Trauma and CMF continued to "perform well, whereas Spine encountered some of the same challenges as in North America. Synthes continued to introduce new products and to expand its direct sales force into new markets."
The company said that growth in Trauma was achieved through two major factors. First, Trauma executed customer targeting and competitive conversion initiatives. Second, Trauma launched several new products that were quickly adopted by surgeons, such as the TFN Lag Screw and the LCP Periarticular Proximal Humerus Plate. CMF delivered strong sales growth, due to increased adoption of the Matrix facial plating line and the growing popularity of thoracic products such as Titanium Sternal Fixation System that allow Synthes to serve new surgeon customers.
Spine's performance reflected market dynamics of a less favorable pricing environment coupled with a delayed product launch in the posterior lumbar fixation segment.
New China Facility
Asia Pacific's sales increase of 21.6% occurred in spite of additional government-mandated price reductions in Japan. Growth was fueled by continued new product introductions and further expansion of a dedicated sales force across the region. Sales, according to the company, grew once again at a high double-digit rate in China and India. Synthes formally opened a new manufacturing facility in China during the quarter.
Company President and CEO Michel Orsinger commented on the performance:
"Synthes' first half 2010 delivered solid top-line growth performance with growth in profits exceeding sales growth. While challenging economic and industry conditions continue to impact growth in our markets, the cost control measures that we have implemented have allowed us to improve our profitability."