Smith & Nephew
Encyclopedia
Smith & Nephew plc is a global medical devices
company headquartered in London, United Kingdom. It is the world's largest producer of arthroscopy
products, second-largest producer of advanced wound management
products, third-largest producer of trauma
and clinical therapy products and fourth-largest producer of orthopedic
reconstruction products. It has operations in 32 countries and its products are sold in over 90 countries.
Its primary listing is on the London Stock Exchange
and it is a constituent of the FTSE 100 Index
. It has a secondary listing on the New York Stock Exchange
.
The Company was founded in 1856 by Thomas James Smith
of Kingston upon Hull
who went into business as a dispensing chemist. A few months before his death in 1896, Smith was joined by his nephew, Horatio Nelson Smith, and the business became known as T.J. Smith and Nephew.
In 1928 the Company developed the wound management
product Elastoplast
. By 1977 the Company acquired the pump manufacturer Watson-Marlow Pumps
, before selling it to Spirax-Sarco Engineering
in 1990. In 1986 it went on to acquire Richards Medical Company, a US specialist in orthopaedic products for £201 million.
In 2002 the Company acquired Oratec Interventions, a surgical devices business, for $310 million. It went on to buy Midland Medical Technologies, a hip resurfacing business, for £67 million in 2004.
The Company acquired Plus Orthopedics, a Swiss
orthopedics
business, for US$889 million in April 2007 and BlueSky, a US wound care business, for $110 million in May 2007.
In September 2007 Biomet
Inc., DePuy Orthopaedics
Inc. (part of Johnson & Johnson
), Smith & Nephew PLC and Zimmer Holdings
Inc. entered into settlement agreements, under which they agree to pay $300 million in total, adopt industry overhauls and undertake corporate monitoring to avoid criminal charges of conspiracy.
" under the Smith & Nephew brand name:
Smith & Nephew has a track record of bringing innovative new products to market that provide better clinical outcomes for patients and save costs for healthcare providers. This is the primary focus of its fourth business unit, Biologics
.
The company's business strategy is based on researching, developing, manufacturing and marketing technically innovative and advanced medical devices. In 2008 it invested $152 million in its highly regarded research and development activities – a figure that is currently around 4% of sales. The Biologics business unit, headquartered in North Carolina in the US, has strategic responsibility for product innovation and development and serves the needs of the remaining business units. The company's direct contacts with healthcare providers are a vital link in the chain. Clinicians' views of their present and future needs provide essential impetus for Smith & Nephew's research work.
The company has three focus areas of cross-business research: novel bioresorbable polymers, tissue or cell engineering, and non-invasive stimulation. Scientific Review Boards, comprising eminent academic scientists and medical professionals, provide independent assessments of the quality of the science and engineering in Smith & Nephew's business unit programmes and guidance on emerging science as necessary.
Medical device
A medical device is a product which is used for medical purposes in patients, in diagnosis, therapy or surgery . Whereas medicinal products achieve their principal action by pharmacological, metabolic or immunological means. Medical devices act by other means like physical, mechanical, thermal,...
company headquartered in London, United Kingdom. It is the world's largest producer of arthroscopy
Arthroscopy
Arthroscopy is a minimally invasive surgical procedure in which an examination and sometimes treatment of damage of the interior of a joint is performed using an arthroscope, a type of endoscope that is inserted into the joint through a small incision...
products, second-largest producer of advanced wound management
Wound healing
Wound healing, or cicatrisation, is an intricate process in which the skin repairs itself after injury. In normal skin, the epidermis and dermis exists in a steady-state equilibrium, forming a protective barrier against the external environment...
products, third-largest producer of trauma
Trauma surgery
Trauma surgery is a surgical specialty involved in the invasive treatment of physical injuries, typically in an emergency setting. Trauma surgeons generally complete residency training in general surgery and often fellowship training in trauma or surgical critical care...
and clinical therapy products and fourth-largest producer of orthopedic
Orthopedic surgery
Orthopedic surgery or orthopedics is the branch of surgery concerned with conditions involving the musculoskeletal system...
reconstruction products. It has operations in 32 countries and its products are sold in over 90 countries.
Its primary listing is on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and it is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
. It has a secondary listing on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
.
History
Thomas James Smith
Thomas James Smith was the founder of Smith & Nephew, one of the United Kingdom's largest medical devices businesses.-Career:After training as a pharmacist at a dispensing chemist in Grantham and then at University College, London, Thomas Smith opened his own chemist's shop in Hull in 1856...
of Kingston upon Hull
Kingston upon Hull
Kingston upon Hull , usually referred to as Hull, is a city and unitary authority area in the ceremonial county of the East Riding of Yorkshire, England. It stands on the River Hull at its junction with the Humber estuary, 25 miles inland from the North Sea. Hull has a resident population of...
who went into business as a dispensing chemist. A few months before his death in 1896, Smith was joined by his nephew, Horatio Nelson Smith, and the business became known as T.J. Smith and Nephew.
In 1928 the Company developed the wound management
Wound healing
Wound healing, or cicatrisation, is an intricate process in which the skin repairs itself after injury. In normal skin, the epidermis and dermis exists in a steady-state equilibrium, forming a protective barrier against the external environment...
product Elastoplast
Elastoplast
Elastoplast is a trademark name of a brand of adhesive bandages and medical dressings made by Beiersdorf. Beiersdorf bought UK and Commonwealth rights from the parent company, Smith & Nephew in 1992 for £46.5 million. It has become a genericized trademark for "sticking plaster" in some...
. By 1977 the Company acquired the pump manufacturer Watson-Marlow Pumps
Watson-Marlow Pumps
Watson-Marlow Pumps Group is an internationally operating pump manufacturer based in Falmouth, Cornwall, UK. It is part of the Spirax-Sarco Engineering Group. Watson-Marlow has offices in Belgium, Brazil, China, Denmark, France, Germany, Italy, Korea, Malaysia, the Netherlands, South Africa,...
, before selling it to Spirax-Sarco Engineering
Spirax-Sarco Engineering
Spirax-Sarco Engineering is a leading British-based manufacturer of boiler and pipeline control valves for steam heating and process plants. It is headquartered in Cheltenham and is a constituent of the FTSE 250 Index.-History:...
in 1990. In 1986 it went on to acquire Richards Medical Company, a US specialist in orthopaedic products for £201 million.
In 2002 the Company acquired Oratec Interventions, a surgical devices business, for $310 million. It went on to buy Midland Medical Technologies, a hip resurfacing business, for £67 million in 2004.
The Company acquired Plus Orthopedics, a Swiss
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
orthopedics
Orthopedics
Orthopedics is the study of the musculoskeletal system. The Greek word 'ortho' means straight or correct and 'pedics' comes from the Greek 'pais' meaning children. For many centuries, orthopedists have been involved in the treatment of crippled children...
business, for US$889 million in April 2007 and BlueSky, a US wound care business, for $110 million in May 2007.
In September 2007 Biomet
Biomet
Biomet, Inc. is one of the world leading medical device manufacturer located in the Warsaw, Indiana business cluster. The company specializes in reconstructive products for hips, knees and shoulders, fixation devices, orthopedic support devices, dental implants, spinal implants and operating room...
Inc., DePuy Orthopaedics
DePuy
DePuy is a franchise of orthopaedic and neuroscience companies. Acquired by Johnson & Johnson in 1998, its companies form part of the Johnson & Johnson Medical Devices & Diagnostics group...
Inc. (part of Johnson & Johnson
Johnson & Johnson
Johnson & Johnson is an American multinational pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500....
), Smith & Nephew PLC and Zimmer Holdings
Zimmer Holdings
-History:Zimmer was founded in 1927 and is headquartered in Warsaw, Indiana, where it is part of the medical devices business cluster there.-Products:...
Inc. entered into settlement agreements, under which they agree to pay $300 million in total, adopt industry overhauls and undertake corporate monitoring to avoid criminal charges of conspiracy.
Operations
The company operates in three market segments through separate "global business unitsStrategic business unit
In essence, the SBU is a profit making area that focuses on a combination of product offer and market segment, requiring its own marketing plan, competitor analysis, and marketing campaign.A Strategic Business Unit emerges at the cross-over between:...
" under the Smith & Nephew brand name:
- Advanced wound managementWound healingWound healing, or cicatrisation, is an intricate process in which the skin repairs itself after injury. In normal skin, the epidermis and dermis exists in a steady-state equilibrium, forming a protective barrier against the external environment...
: advanced treatments for difficult woundWoundA wound is a type of injury in which skin is torn, cut or punctured , or where blunt force trauma causes a contusion . In pathology, it specifically refers to a sharp injury which damages the dermis of the skin.-Open:...
s. - EndoscopyEndoscopyEndoscopy means looking inside and typically refers to looking inside the body for medical reasons using an endoscope , an instrument used to examine the interior of a hollow organ or cavity of the body. Unlike most other medical imaging devices, endoscopes are inserted directly into the organ...
: products for minimally invasive surgery, based in Andover, MassachusettsAndover, MassachusettsAndover is a town in Essex County, Massachusetts, United States. It was incorporated in 1646 and as of the 2010 census, the population was 33,201...
. - OrthopaedicsOrthopedic surgeryOrthopedic surgery or orthopedics is the branch of surgery concerned with conditions involving the musculoskeletal system...
: hip and knee implantsImplant (medicine)An implant is a medical device manufactured to replace a missing biological structure, support a damaged biological structure, or enhance an existing biological structure. Medical implants are man-made devices, in contrast to a transplant, which is a transplanted biomedical tissue...
and traumaTrauma surgeryTrauma surgery is a surgical specialty involved in the invasive treatment of physical injuries, typically in an emergency setting. Trauma surgeons generally complete residency training in general surgery and often fellowship training in trauma or surgical critical care...
products, based in Memphis, TennesseeMemphis, TennesseeMemphis is a city in the southwestern corner of the U.S. state of Tennessee, and the county seat of Shelby County. The city is located on the 4th Chickasaw Bluff, south of the confluence of the Wolf and Mississippi rivers....
.
Smith & Nephew has a track record of bringing innovative new products to market that provide better clinical outcomes for patients and save costs for healthcare providers. This is the primary focus of its fourth business unit, Biologics
Biologics
A biologic is a medicinal product such as a vaccine, blood or blood component, allergenic, somatic cell, gene therapy, tissue, recombinant therapeutic protein, or living cells that are used as therapeutics to treat diseases...
.
The company's business strategy is based on researching, developing, manufacturing and marketing technically innovative and advanced medical devices. In 2008 it invested $152 million in its highly regarded research and development activities – a figure that is currently around 4% of sales. The Biologics business unit, headquartered in North Carolina in the US, has strategic responsibility for product innovation and development and serves the needs of the remaining business units. The company's direct contacts with healthcare providers are a vital link in the chain. Clinicians' views of their present and future needs provide essential impetus for Smith & Nephew's research work.
The company has three focus areas of cross-business research: novel bioresorbable polymers, tissue or cell engineering, and non-invasive stimulation. Scientific Review Boards, comprising eminent academic scientists and medical professionals, provide independent assessments of the quality of the science and engineering in Smith & Nephew's business unit programmes and guidance on emerging science as necessary.
Awards
Recent awards include:- Manufacturer of the Year in 2007
- Smith & Nephew Advanced Wound Management won Logistics and Supply Chain Manufacturer Award 2006
- ASM International 2005 Engineering Materials Achievement Award for Smith & Nephew's trademarked oxinium technology
- Smith & Nephew's Landmark Back Pain Study Receives Outstanding Paper Award at North American Spine Society 2003 Annual Meeting