In medication delivery, our devices help treat cancer patients and provide relief to those in pain. Our vital care products reduce hospital-acquired infections, manage patients’ airways before, during, and after surgery, maintain body temperature and assist reproduction through IVF therapy. Our safety products keep health workers safe by helping prevent needlestick injuries and reducing cross-infections.
2014 Headline revenue £804m
2014 Operating profit margin 19.8%
We have operations in over 30 countries with manufacturing concentrated in Mexico, US, UK, Italy, Germany, Czech Republic and China. We sell to approximately 120 markets and, while the US continues to be our largest single market with around 50% of sales, we continue to build our presence in select emerging markets.
Three-quarters of our end customers are hospitals, with the remainder comprising the alternate care market such as homecare, clinics and other surgery centres, as well as OEM relationships. We have a direct sales presence in over 20 countries, and distribution arrangements in approximately 100 others.
The competitive landscape for Smiths Medical is complex as we compete with different companies across our product portfolio. Our major competitors include Covidien, Teleflex, B Braun, Becton Dickinson, C R Bard, 3M (Arizant), Hospira and CareFusion. We often compete with a portion of a major competitor’s medical business as well as single product line companies trying to enter a particular market. In emerging markets, we compete with both large multinational companies and smaller domestic players.
Our strategy is to engage suppliers in product innovation, value engineering and a commitment to quality. Our goal is to reduce product and supply chain costs, improve delivery performance and ensure supply continuity plans. The majority of our direct spending is on resins, plastic injection mouldings, and electronics.