British orthopedic giant Smith & Nephew plc (NYSE:SNN) is shuffling the deck in order to focus on higher growth markets in Brazil, Russia, India and China, according to a company spokesman.
Late yesterday news began trickling out that SNN would be combining its Memphis, Tenn.-based orthopedic reconstruction division and its Andover, Mass.-based endoscopy unit into a new unit called the Advanced Surgical Devices Division, to be led by SNN veteran Mike Frazzette. He will replace former orthopedic division president Joseph DeVivo, whose last day will be August 5, the same day the company is set to announce its quarterly earnings.
A company spokesman told MassDevice that the new division will focus on serving customers in more established markets in the U.S., Canada, Europe, Japan, Australia and New Zealand.
“In the last few years we have seen the markets around us change, some significantly,” SNN spokesman Joseph Metzger told MassDevice in an email. “Our established markets, especially in North America and Europe, are under pressure. At the same time emerging markets have huge potential. We are going to ensure we have a focused organization and allocate appropriate resources to seize these opportunities.”
Metzger said that the company will release more details in the coming weeks.
As part of the realignment the new Advanced Surgical Devices Division will market the company’s orthopedic and sports medicine products in the more established markets. It will also serve existing customers of the company’s orthopedic and endoscopic divisions.
Separately, the company will look to free up “additional resource and focus will be given to the emerging markets of China, India, Brazil and Russia and other international markets,” Metzger wrote.
During the first quarter, SNN said its international business grew 8 percent, compared to a 4 percent uptick in the U.S. and just 1 percent in the EU and United Kingdom. Together the orthopedic and endoscopy divisions made up about 90 percent of Smith & Nephew’s total U.S. sales during the first quarter and 78 percent of its $1.055 billion global sales in Q1.
Meanwhile, SNN said sales in Africa, Asia, Australasia & other Americas were $253 million.
SNN shares were up a hair to $53.95 in late-day trading on Wall Street.