Ortho-Brazil

 

Smith & Nephew plc (LSE: SN, NYSE: SNN) announced today that it will acquire assets related to the distribution business for its sports medicine, orthopaedic reconstruction and trauma products in Brazil, currently conducted through Pró Cirurgia Especializada (PCE).  This market is valued at over $460 million.  The overall market is largely divided in terms of pricing set by the public SUS system and prices influenced by private insurance companies. (Get a free executive summary here). The ASPs of products purchased through public healthcare are stable; however, there has been a gradual decline in ASPs in the private healthcare sector. Overall, the strong positive growth in all segments will allow the entire market to grow rapidly over the foreseeable future.

In 2011, Smith & Nephew held a 2.1% share in the Brazilian orthopedic trauma market with notable shares in both the private internal and external fixation markets. Their highest sales were of their intramedullary nails. The company sells the majority of their intramedullary nails under the TriGen® brand name. Their PERI-LOC® plating systems were also a gaining revenue stream in 2011, as they allow for compression or locking screws in every hole. The system has an option for radiolucent targeting, which aids in alignment for minimally invasive surgeries. Smith & Nephew tend to have premium prices for their products, which significantly contributes to their annual revenue.