Acquisitions Signal Smith & Nephew’s Emerging Market Strategy

Smith & Nephew’s recent purchases of two trauma businesses in Brazil and India (Pró Cirurgia Especializada and Adler Mediequip Pvt. Ltd.) reflect its broader strategy to find growth in emerging markets, an attempt to offset the losses and disappointing quarters the company is seeing in established markets like Europe.

An interviewer at a recent medical device conference asked Phil Cowdy, head of corporate affairs at Smith & Nephew PLC, if the company had missed an opportunity in China. Orthopedic rivals Stryker Corp., Zimmer Biomet Holdings Inc., and even Medtronic PLC all purchased Chinese companies – Trauson Holdings Co. Ltd., [See Deal] Beijing Montagne Medical Device Co., Ltd., and China Kanghui Holdings, respectively [See Deal] ( to extend their reach into China’s surging orthopedics market. (See Also see "Stryker Enters China Race With Trauson Bid" - In Vivo, 22 January, 2013..) Smith & Nephew, in contrast, did not make a bold purchase.

Cowdy took a verbal step back. He noted that smaller companies are acquired because either their product or platform would...

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