Recently Smith & Nephew plc
SNN closed its acquisition of the Brainlab orthopaedic joint
reconstruction business. The deal, initiated in March 2019, is in
line with the companyâs strategy to invest in cutting-edge
technologies, which will help accelerate its presence in the
multi-asset digital surgery and robotic ecosystem space.
Financial terms of this acquisition deal were
kept under wraps. Apart from the orthopedic majorâsbusiness
purchase, the transaction includes certain intangible assets as
well as the orthopaedic Brainlab salesforce, which will be
integrated into the companyâs robotics commercial organisation.
Brainlab Business at a
This business provides digital workflow tools
starting from pre-operative planning to intraoperative navigation
to postoperative evaluation and sharing. It already has a huge
customer base, which after getting incorporated into Smith &
Nephew, will help the company expand its niche market. Currently,
the technology is being used in more than 40,000 orthopaedic cases
each year at more than 500 accounts worldwide.
Strategic Implication of the
With the completion of the acquisition, Smith
& Nephew can now access a broad range of Brainlab technologies
in cloud computing, tracking, augmented reality, robotics, AI,
machine learning, image fusion and anatomical segmentation.
Smith & Nephew SNATS, Inc.
Smith & Nephew SNATS, Inc. price | Smith
& Nephew SNATS, Inc. Quote
Per Smith & Nephew, the integration of
Brainlab Business will helpdevelop applications in orthopaedic
reconstruction and sports medicine. The consolidation will also
open up opportunities to penetrate other surgical specialties.
According to Smith & Nephew, besides a
growing clientele base, the combined business will also lead to a
powerful digital ecosystem, which will deliver advanced clinical
solutions, bolstering Smith & Nephewâs technology arm for
Smith & Nephew on Buyout
Smith & Nephew is fortifying its footprint
through inorganic growth path. In April, it concluded the
acquisitions of regenerative medicine products maker Osiris
Therapeutics and Leaf Healthcare, the developer of the unique Leaf
Patient Monitoring System.
Earlier, in January, the company closed the
buyout of CeterixOrthopadics, the developer of NovoStitch Pro, a
device for meniscal repair. , can now add to our future growth as
we move throughout 2019.
In the past three months, shares of the company
have outperformed its industry. The stock has rallied 10.7% against
the industryâs 1.8% decline.
Zacks Rank and Other Key
Smith & Nephew currently carries a Zacks Rank
#2 (Buy). Some other top-ranked stocks in the broader medical space
are Cerner Corporation CERN, Penumbra PEN and Bruker Corporation
BRKR. While Cerner sports a Zacks Rank #1 (Strong Buy), Penumbra
and Bruker carry a Zacks Rank of 2. You can see the
complete list of todayâs Zacks #1 Rank stocks here.
Cernerâs long-term earnings growth rate is
expected to be 13.5%.
Penumbraâs long-term earnings growth rate is
projected at 21.5%.
Brukerâs long-term earnings growth rate is
estimated at 11.7%.
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