Smith & Nephew

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Smith & Nephew plc
Public limited company
Traded as LSESN
NYSESNN
Industry Medical equipment
Founded 1856 (Kingston upon Hull)
Headquarters London, United Kingdom
Key people
John Buchanan (Chairman)
Olivier Bohuon (CEO)
Revenue $4,617 million (2014)[1]
$749 million (2014)[1]
$501 million (2014)[1]
Number of employees
11,000 (2014)[2]
Website www.smith-nephew.com

Smith & Nephew plc is a British-based multinational medical equipment manufacturing company headquartered in London, United Kingdom.[3] It is an international producer of arthroscopy products, advanced wound management products, trauma and clinical therapy products and orthopedic reconstruction products.[2] Its products are sold in over 90 countries.[2]

History[edit]

The company was founded in 1856 by Thomas James Smith of Kingston upon Hull who went into business as a dispensing chemist.[4] 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.[4]

In 1928 the company acquired the licence to market and produce the Elastoplast range of bandages. By 1977 the company acquired the pump manufacturer Watson-Marlow Pumps, before selling it to Spirax-Sarco Engineering in 1990.[5] In 1986 it went on to acquire Richards Medical Company, a US specialist in orthopaedic products for £201 million.[4]

In 2002 the company acquired Oratec Interventions, a surgical devices business, for $310 million.[6] It went on to buy Midland Medical Technologies, a hip resurfacing business, for £67 million in 2004.[7]

The company acquired Plus Orthopedics, a Swiss orthopedics business, for US$889 million in April 2007[8] and BlueSky, a US wound care business, for $110 million in May 2007.[9]

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.[10]

The company acquired Healthpoint Biotherapeutics, a specialist in the bioactives area of advanced wound management, for $782 million in December 2012.[11]

In February 2014, Smith & Nephew announced the purchase of ArthroCare for US$1.7 billion in cash. This was seen as a move to broaden the company's sports medicine range for minimally invasive surgery moves the company into the Ear, Nose & Throat market.[12]

Operations[edit]

The Smith and Nephew factory in Kingston upon Hull, United Kingdom

Smith & Nephew operates in three market segments through separate "global business units" under the Smith & Nephew brand name:

Controversies[edit]

In February 2012 Smith & Nephew plc agreed to pay US$22.2 million to settle multiple US Foreign Corrupt Practices Act (FCPA) offenses committed by its US and German subsidiaries.[13] Under the new agreements Smith & Nephew PLC paid $5.4 million in restitution and interest to settle the SEC's civil charges. Its U.S. subsidiary Smith & Nephew Inc. paid a $16.8 million criminal fine.[14] The company admitted to having bribed government-employed doctors in Greece to use its medical equipment over the past decade.[15] The company has entered into a deferred prosecution agreement with the US Department of Justice (DOJ) and has agreed to retain a compliance monitor for 18 months.[16]

Awards[edit]

Awards include:

  • Manufacturer of the Year in 2007[17]
  • Smith & Nephew Advanced Wound Management won Logistics and Supply Chain Manufacturer Award 2006[18]
  • ASM International 2005 Engineering Materials Achievement Award for Smith & Nephew's trademarked oxinium technology[19]
  • Smith & Nephew's Back Pain Study Receives Outstanding Paper Award at North American Spine Society 2003 Annual Meeting[20]

References[edit]

  1. ^ a b c "Preliminary Results 2014" (PDF). Smith & Nephew plc. Retrieved 21 March 2015. 
  2. ^ a b c "Smith & Nephew: At a glace". www.smith-nephew.com. Retrieved 29 December 2014. 
  3. ^ "SNN Profile | Smith & Nephew SNATS, Inc. Comm Stock - Yahoo! Finance". finance.yahoo.com. Retrieved 5 September 2012. 
  4. ^ a b c "Smith & Nephew History". Global.smith-nephew.com. Retrieved 2 April 2013. 
  5. ^ "Watson-Marlow profile". Watson-marlow.se. Retrieved 18 April 2011. 
  6. ^ Smith & Nephew to buy Oratec for $310mm in cash Windhover Information, February 2002
  7. ^ Smith & Nephew buys UK hip resurfacing business Biomedical Materials, 1 May 2004
  8. ^ Smith & Nephew buys Swiss company Plus Orthopedics Biomedical Materials, 1 April 2007
  9. ^ Smith & Nephew buys wound care firm BlueSky for $110m Independent, 12 May 2007
  10. ^ Biomet stays part of informal SEC probe Reuters, 11 October 2007
  11. ^ Smith & Nephew to Buy Healthpoint for $782 Million Bloomberg, 28 November 2012
  12. ^ Smith & Nephew to Buy ArthroCare for $1.7 Billion in Cash Bloomberg 3 February 2014
  13. ^ The FCPA Blog (6 February 2012). "Smith & Nephew Reaches $22 Million Settlement". The FCPA Blog. 
  14. ^ "Smith & Nephew to pay $22.2M in US settlements". 6 February 2012. 
  15. ^ Andrew Jack (6 February 2012). "Smith & Nephew in $22m bribes fine". The Financial Times. 
  16. ^ Office of Public Affairs (6 February 2012). "Medical Device Company Smith & Nephew Resolves Foreign Corrupt Practices Act Investigation". The United States Department of Justice. 
  17. ^ Smith & Nephew wins manufacturing award On Target, 2007
  18. ^ Oliver Wright
  19. ^ Smith & Nephew wins award for oxinium technology Bimedical Materials, 1 November 2005
  20. ^ North American Spine Society 2003 Annual Meeting Smith & Nephew Press Release

Books[edit]

  1. J Foreman-Peck, Smith & Nephew in the Health Care Industry, Edward Elgar 1995

External links[edit]