Smith & Nephew SNATS SNN recently announced the signing of a co-marketing agreement with JointVue for its patented OrthoSonic 3D Surgery Planning Technology, which is the only ultrasound device currently on the market to deliver 3D preoperative planning.
JointVue’s technology allows surgeons to use Smith+Nephew’s CORI Surgical System for robotic-assisted knee arthroplasty to create a personalized surgical plan, which is likely to provide opportunities to improve patient satisfaction and operating room efficiency.
Likely Trend of SNN Stock Following the News
Following the announcement, shares of the company moved north 1.2% to $28.62 at yesterday’s close.
As the field of robotic-assisted knee surgery continues to evolve, the demand for solutions that cater to diverse patient profiles, coupled with advanced planning and execution tools, is paramount in personalizing surgery. Robotic-assisted surgery can significantly enhance accuracy and reproducibility, potentially leading to improved patient outcomes compared to conventional techniques. Owing to the strengthened robotic surgical business for SNN, we expect the market sentiment to remain positive around this news.
In the past six months, SNN shares have gained 20.3% compared with the industry’s rise of 13.1%. The S&P 500 has risen 15.9% in the same time frame.
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More on the SNN and JointVue Deal
Pre-operative surgical planning provides the surgeon with information about the patient's anatomy to help the surgeon determine the preferred implants before the surgery begins. This foresight helps to enable just-in-time delivery of implants and instruments, helping to conserve space and reduce both operating room (OR) time and sterilization costs. The combination of JointVue’s OrthoSonic technology with Smith+Nephew’s CORI Surgical System, known for its small footprint and scalability, offers an ideal solution for Ambulatory Surgery Centers (ASCs) where OR space is limited.
Offering both image-free and MRI-powered solutions for pre-operative planning, the CORI Surgical System distinguishes out in the industry because of its image-agnostic registration capabilities. Now, with the exclusive adoption of JointVue’s OrthoSonic 3D Surgery Planning Technology for Smith+Nephew implants, surgeons are likely to have access to an additional procedural solution that utilizes ultrasound to generate a 3D plan within minutes. This radiation-free, automated planning tool guides surgeons to tailor the procedure uniquely to each patient.
The addition of JointVue’s technology is likely to further expand the imaging modalities available to Smith+Nephew customers for pre-operative robotic planning. The combination of JointVue with the CORI Surgical System for robotic-assisted knee replacement provides a personalized solution for surgeons and patients and is a perfect fit for the growing ASC market.
SNN’s Recent Collaborations
In August, SNN and InfuSystem Holdings announced a three-year distribution agreement for delivering Smith & Nephew's innovative RENASYS EDGE negative pressure wound therapy system to patients requiring home-based care for chronic wounds. The collaboration aims to enhance patient access to advanced wound care technology, leveraging InfuSystem’s extensive network and service capabilities.
In the same month, SNN also announced an exclusive digital and advanced analytics collaboration with Healthcare Outcomes Performance Company (HOPCo) – the world’s largest, fully integrated, musculoskeletal value-based care and outcomes management company. The collaboration is likely to enhance solutions for Ambulatory Surgical Center’s customers, physicians, and patients through HOPCo’s digital health and analytics platforms, myrecovery and Vitals.
Favorable Industry Prospects for SNN
Per a report by Grand View Research, the global surgical robots market size was estimated at $3.92 billion in 2023 and is expected to witness a growth rate of 9.5% from 2024 to 2030.
Shortage of physicians and surgeons across the globe and increasing adoption of automated instruments used for surgery are major factors driving market growth. Furthermore, the growing prevalence of bone degenerative diseases and the rising number of hip & knee replacement surgeries due to increasing cases of arthritis & osteoporosis are anticipated to drive growth.
SNN’s Zacks Rank & Stocks to Consider
SNN carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Baxter International Inc. BAX, and Boston Scientific Corporation BSX.
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 17.5%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 24.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 116.4% compared with the industry’s 38.3% rise in the past year.
Baxter, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10%. BAX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.7%.
Baxter has gained 15% compared with the industry’s 30.7% rise in the past year.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.
Boston Scientific’s shares have rallied 74.7% compared with the industry’s 30.7% rise in the past year.
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