Smith & Nephew Inc
) launched its Journey II Bi-Cruciate Stabilized (BCS) knee
replacement at the American Academy of Orthopaedic Surgeons
(AAOS) meeting in Chicago.
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Smith & Nephew had earlier won the European CE Mark approval
for its Journey II BCS knee replacement in 2012. The company also
initiated a limited market release of the product that year.
The Journey II BCS knee incorporates Smith & Nephew's
VERILAST Technology. The Journey II BCS knee comprises two wear
reducing materials - the company's proprietary OXINIUM alloy
along with a highly-cross-linked plastic liner. This in turn
reduces concerns associated with implant wear versus other
regular bearing couples available in the market.
The Journey II BCS knee replicates the knee joint's hard surfaces
and the usual friction of the soft tissues, ensuring natural
motion for the patient. Considering that wear performance and fit
are the major concerns for knee replacement, Smith & Nephew
should gain a competitive edge in the market with this product.
According to Smith & Nephew, Journey II BCS knee is designed
to improve standard of care. This was made possible with the use
of the advanced LifeMOD human simulation software which was
included in Smith & Nephew's portfolio following the
acquisition of LifeModeler in 2012.
Despite the recent economic pressure and dragging sales, the
company's knee implant business remains its mainstay. Smith &
Nephew's consistent focus on the knee implant franchise is
encouraging. We believe that portfolio extension on the back of
innovation should provide resilience in a low growth environment.
We also note Smith & Nephew's increasing focus on the
Advanced Wound Management division, away from the clouded
orthopaedic space, should leverage top-line. Its acquisition of
Healthpoint Biotherapeutics in 2012 is a strategic fit and an
important step toward creating a strong position in bioactives,
the fastest growing area in Advanced Wound Management.
The stock carries a Zacks Rank #3 (Hold). While we remain on the
sidelines for Smith & Nephew, other stocks in the medical
devices space such as
) warrant a look. These stocks carry a Zacks Rank #2 (Buy).