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Smith & Nephew plc SNN recently received 510(k) clearance from the Food & Drug Administration (FDA) for a stemless anatomic total shoulder for the AETOS Shoulder System (AETOS Stemless).
The AETOS Shoulder System, including AETOS Stemless, is the latest solution in Smith+Nephew’s expanding Upper Extremity portfolio.
SNN’s Likely Stock Trend Following the News
Following the announcement, shares of SNN moved 0.8% south to $25.32 yesterday.
Total shoulder arthroplasty is one of the fastest-growing segments in Orthopaedics, with an estimated 250,000 procedures annually in the United States by 2025. The company has been gaining synergies from its expanding Upper Extremity portfolio, which complements the market-leading Sports Medicine shoulder repair and biologics solutions. Henceforth, we expect the latest FDA clearance to motivate market sentiment in favor of SNN stock in the upcoming days.
SNN currently has a market capitalization of $10.95 billion. The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $5.78 billion, which suggests 10.9% growth from the fiscal 2023 reported number.
About SNN’s AETOS Stemless
AETOS Stemless addresses the growing demand for anatomic total shoulder replacement. Its small operating room footprint allows for an efficient procedure. It is designed to maximize metaphyseal fixation and stability, with an inlay collar, cruciate fins and a porous titanium coating to encourage biological fixation.
The stemless anatomic total shoulder represents a significant advancement in shoulder arthroplasty by personalizing surgery, which provides options that help surgeons give patients the best chance for recovery.
About SNN’s AETOS Shoulder System
Introduced last year, the AETOS Shoulder System delivers an elegant design and an elevated experience through its simplicity, uniformity and flexibility. The new stemless implant expands the AETOS Shoulder System portfolio, enabling streamlined convertibility from Stemless to Meta Stem.
It is cleared for use in the United States and approved for use in Canada.
Industry Prospects Favor SNN
Per a report from Fact.MR, the global shoulder arthroplasty market was valued at $1.57 billion in 2023 and is projected to reach $2.32 billion by 2033 at a compound annual growth rate of 4%. Key market growth drivers include the rapidly increasing cases of shoulder arthritis and the rising aging population.
Recent Developments by Smith & Nephew
In October, the company inked a co-marketing agreement with JointVue for its patented OrthoSonic 3D Surgery Planning Technology. It is the only ultrasound device currently on the market to deliver 3D preoperative planning. Under the agreement, JointVue’s technology allowed surgeons to use Smith+Nephew’s CORI Surgical System for robotic-assisted knee arthroplasty to create a personalized surgical plan.