SNN Stock Rises on the Completion of First Case With CATALYSTEM System
Smith & Nephew SNATS SNN recently announced the completion of the first surgery case using its latest CATALYSTEM Primary Hip System. The first surgical procedure using the CATALYSTEM System was completed in the second week of September by three prominent orthopedic surgeons — Dr. Thorsten Seyler of Duke University, Dr. George Haidukewych of Orlando Health, and Dr. Ran Schwarzkopf of NYU Langone Health.
The CATALYSTEM Primary Hip System makes use of the exclusive, patent-pending ACCUBROACH Technology, which offers demonstrated reproducibility between the broach and implant, ensuring stem seating is reliable and repeatable. Per surgeons, the system’s instruments were exceptionally user-friendly and ideal for the direct anterior approach.
Likely Trend of SNN Stock Following the News
Following the announcement, shares of the company moved nearly 0.8% north to $30.95 at yesterday’s close.
The introduction of the CATALYSTEM Primary Hip System, which expands on the outstanding clinical performance of POLAR3 and strengthens SNN’s current hip portfolio with a primary stem, is ideal for advanced anterior surgeries. Smith & Nephew's new stem, along with its robotics platform and OXINIUM Technology, should help the company improve patient outcomes in hip surgery. Owing to the strengthened hip business for SNN, we expect the market sentiment to remain positive around this news.
Meanwhile, SNN currently has a market capitalization of $13.43 billion. It has an earnings yield of 5.54%, much higher than the industry’s yield of 0.72%.
More on the SNN’s CATALYSTEM System
The CATALYSTEM Primary Hip System builds on the legacy of Smith & Nephew's clinically successful system designs by employing global data sets spanning femoral morphologies to produce a precise fit. The system features a triple-taper stem design with uniform proximal loading, which is useful for anterior approaches but can also be applied to other approaches due to its reduced distal stem shape and shorter lengths. In July, SNN announced the receipt of FDA 510(k) clearance for its CATALYSTEM Primary Hip System.
The design of CATALYSTEM facilitates accurate fit and fill proximally without distal interference. It is ideally suited for the direct anterior approach. Additionally, the system is delivered in a single modular tray, which helps drive efficiencies in facilitating more shelf space and reducing sterilization costs.
Favorable Industry Prospects for SNN
Per a report by Precedence Research, the global hip replacement market size was estimated at $6.32 billion in 2023 and is expected to reach $10.7 billion by 2033 at a growth rate of 5.4%.
An increase in the number of geriatric patients with osteoarthritis and other pain disorders, such as rheumatoid arthritis, is primarily associated with their increased participation in sports and increased risk of injury during play, which can result in fractures or ligament sprains and increased number of patients requiring hospitalization. The market is growing steadily due to improved navigation for performing surgeries and greater robotic automation and networking.
SNN’s Notable Developments
In September, SNN announced the launch of its TOTAL ANKLE Patient-Matched Guides. These guides are likely to provide surgeons with a predictable and efficient option to plan and perform total ankle replacement procedures.
SNN’s Price Performance
In the past six months, SNN shares have gained 18.6% compared with the industry’s rise of 10.2%. The S&P 500 has gained 9.1% in the same time frame.
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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 Universal Health Service UHS, Quest Diagnostics DGX and ABM Industries ABM. While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Service has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 56.1% compared with the industry's 48.1% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 13.9% so far this year compared with the industry’s 17.9% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 27.4% so far this year compared with the industry’s 17% growth.
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