Smith & Nephew Updates on Positive NPWT Business Developments in European Market

HULL, England, August 8, 2011 -

The Advanced Wound Management division of Smith & Nephew, Inc., a subsidiary of Smith & Nephew plc (LSE: SN; NYSE: SNN), updates today on its Negative Pressure Wound Therapy (NPWT) position in the European market, including the status of recent legal, regulatory and research developments.

“Recent favorable court decisions in Germany and France, combined with our upcoming listing on the UK Drug Tariff and our participation in an important clinical trial in Germany, are all evidence that Smith & Nephew continues to be a respected and reliable supplier of NPWT products.  We look forward to continuing to provide our full range of products to the European market,” said Robin Carlstein, Senior Vice President of Advanced Wound Devices at Smith & Nephew.  ”Smith & Nephew is proud to supply patients and clinicians with state-of-the-art wound treatment solutions that deliver value and improve patient care.”

Positive Results in Patent Litigation

In the courtroom, Smith & Nephew has recently prevailed against claims of alleged patent infringement made by a competitor in courts in Germany and France.  These decisions follow favorable patent litigation results in other countries, both in Europe and elsewhere.  While some decisions can be appealed, we are not restricted by any court from selling our current NPWT products in any country where we offer them.  At the same time, we continue to invest in developing our own innovative technology and growing our own patent portfolio.

Reimbursement Support Secured

Smith & Nephew’s PICO™ NPWT System has been granted community reimbursement status in the United Kingdom and will be listed on the UK Drug Tariff beginning August 1.  In Germany, community reimbursement is expected by 2014 in addition to the existing hospital reimbursement.

PICO will offer clinicians simplified, disposable and cost-effective treatment solutions allowing NPWT to benefit a wider group of patients with wounds.  Patients with PICO will experience a light-weight, discrete and comfortable device enabling more patients to be discharged home with NPWT still in place.  PICO will support clinicians, NHS budget holders and patients to reduce the human and economic cost of wounds.

Expanding Use of NPWT
Smith & Nephew has also been selected to participate in a national study in Germany on NPWT for various types of wounds.  Starting October 1, 2011, up to 7,000 insured individuals will be treated in a hospital or outpatient setting with this new vacuum-assisted wound closure therapy in the context of a clinical trial.  

For more information about Smith & Nephew, please visit www.smith-nephew.com.

Inquiries

Investors/Analysts
Phil Cowdy +44(0)20-7401-7646
Smith & Nephew plc

Other inquiries
Robin Carlstein +1-727-399-3766
Senior Vice President
Smith & Nephew Advanced Wound Devices

Markus Sebastian +49(0)40-879-744-100  
General Manager    
Smith & Nephew Advanced Wound Management

About Smith & Nephew
Smith & Nephew is a global medical technology business with global leadership positions in Orthopaedic Reconstruction, Advanced Wound Management, Sports Medicine, Trauma and Clinical Therapies.  The Company has distribution channels, purchasing agents and buying entities in over 90 countries worldwide.  Annual sales in 2010 were nearly $4.0 billion.

Smith & Nephew is dedicated to helping improve people’s lives.  The Company prides itself on the strength of its relationships with its surgeons and professional healthcare customers, with whom its name is synonymous with high standards of performance, innovation and trust.  

Forward-Looking Statements

This document may contain forward-looking statements that may or may not prove accurate.  For example, statements regarding expected revenue growth and trading margins, market trends and our product pipeline are forward-looking statements.  Phrases such as “aim”, “plan”, “intend”, “anticipate”, “well-placed”, “believe”, “estimate”, “expect”, “target”, “consider” and similar expressions are generally intended to identify forward-looking statements.  Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. For Smith & Nephew, these factors include: economic and financial conditions in the markets we serve, especially those affecting health care providers, payors and customers; price levels for established and innovative medical devices; developments in medical technology; regulatory approvals, reimbursement decisions or other government actions; product defects or recalls; litigation relating to patent or other claims; legal compliance risks and related investigative, remedial or enforcement actions; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters that affect us or our markets, including those of a political, economic, business or competitive nature.  Please refer to the documents that Smith & Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith & Nephew’s most recent annual report on Form 20-F, for a discussion of certain of these factors.

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Press: Jeff Chertack +32(0)47-019-02-57, Ogilvy Public Relations - Brussels