Smith amp;amp; Nephew remains hip

Smith amp; Nephew is the UK’s largest listed medical equipment company and is known for its hip and knee implants. The group has been moving into higher growth areas and undertaken a number of acquisitions. Smith amp; Nephew has long been viewed as a takeover candidate with Stryker recently showing interest.

In 2011 Smith amp; Nephew teamed up with Billie Jean King to highlight the impact of her double knee replacement. The former tennis world No. 1 stated in a press release that: “I feel like I’m 20 again, and I’m back on the courts playing tennis.”

Ms King benefited from Smith amp; Nephew’s Legion knee with VERILAST Technology. At the time this was the only technology tested for 30 years of wear performance and as such was expected to provide 30 years of active mobility.

With an ageing global demographic demand for hip and knee replacements is set to increase. Smith amp; Nephew is also benefiting from increased demand in emerging markets and a strategic shift towards higher growth areas.

Smith amp; Nephew’s growth drivers

Source: Smith amp; Nephew investor presentationHealthcare can be an attractive area to invest, as it is defensive and healthcare spending...