West Chester (PA), USA, April 25, 2012
Synthes (SIX: SYST.VX) today announced its First Quarter 2012 sales results with growth of 1.5% (2.1% in local currency).
- Global sales of US$ 997.5 million increased 1.5% (2.1% in local currency [LC]) vs. prior year (PY).
- Positive LC growth was achieved across all product groups in all regions outside North America.
- North America performance was challenged by ongoing weak economic conditions, with an unusually mild winter contributing to reduced Trauma related procedures.
- Europe achieved robust sales growth vs. PY due to innovative new products and quality service commitments despite the ongoing financial crisis and the effects of a milder than normal winter.
- Asia Pacific results were solid, especially considering the challenging pricing and reimbursement policy changes across several markets within the region.
- Rest of World (Latin America and Middle East & Africa) double-digit sales growth was fueled by strong performances in Latin America and the first delivery of a tender order from the Middle East.
- Synthes announced the signing of a license and development agreement with Kuros Biosurgery AG (Kuros), to commercialize Kuros' synthetic matrix technology in certain fields.
SALES RESULTS (unaudited)
First Three Months 2012 (January - March) | ||||
Consolidated Net Sales in US$ millions |
2012 |
2011 |
% Change (in US$) |
% Change (in local currency)* |
North America |
545.0 |
558.3 |
-2.4% |
-2.3% |
Europe |
235.6 |
235.1 |
0.2% |
3.8% |
Asia Pacific |
144.5 |
128.9 |
12.1% |
8.9% |
Rest of World |
72.4 |
60.7 |
19.3% |
21.6% |
Total |
997.5 |
983.0 |
1.5% |
2.1% |
* Local currency: 2012 results translated at 2011 foreign exchange rates.
REGIONAL PERFORMANCE (First Quarter 2012)
In North America, the milder than usual winter weather conditions negatively impacted Synthes' Trauma growth performance due to the reduced number of weather-related fractures. In CMF, Synthes continued to benefit from a diversified portfolio showing strong growth in the core plating and Neuro segments with the Matrix family of systems. The Spine market continues to be challenged by difficult market conditions including declining procedural volumes, pricing pressures and reimbursement hurdles for the coverage of certain degenerative disc disease indications. Recent U.S. product approvals will allow re-entry into the corpectomy market, as well as a first time entry into the vertebral augmentation market.
In Europe, Synthes experienced another solid quarter of sales growth in a challenging market environment. The continued commitment to launch innovative products and deliver exceptional service, with the goal of improving patient care, resonated well with the European region as Synthes continued to gain market share across all product groups.
Asia-Pacific achieved solid high single-digit sales growth despite government-mandated price reductions and changes to reimbursement policies across several markets. The Trauma business continues to build in all markets. China, India, Korea and Taiwan delivered strong double-digit sales growth.
In «Rest of World», Synthes continued to show strong double digit growth across the Latin America region despite an increasingly competitive market. The transition to a direct sales organization in Chile has been very successful and surpassed initial expectations. Additionally, the first delivery of a Middle Eastern tender order positively contributed to the performance.
OUTLOOK
2012 will likely remain as challenging to the medical device industry as 2011, with continuing uncertainty surrounding the more mature markets. Nevertheless, Synthes remains focused on new product launches and continues investing in innovation and sales support equipment. The company will continue to develop and implement productivity gain initiatives and also continue to adapt the organization in order to address the challenging market environment. In April 2011 Synthes announced a definitive merger agreement with Johnson & Johnson and is expecting to complete the merger in the second quarter of 2012, subject to receipt of required regulatory approvals and other customary closing conditions.
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.
Financial Analyst Phone Conference
In view of the merger agreement with Johnson & Johnson
announced on April 27th, 2011, no media/financial analysts
phone conference on the First Quarter Sales Results 2012 will
be conducted.
Image Bank
A selection of product and company images can be found
here.
For further information please contact
Gilgian Eisner, Investor Relations, Synthes, Inc.
Phone +41 32 720 4745, Fax +41 32 720 4811
Email: investor.relations@synthes.com
http://www.synthes.com
Restrictions Subject to U.S. 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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