S ir C h r is O ’ D o n n e l lR etired C hief E xecutive, Smith & N ephew

F u t u r e M e d ic a l T e c h n o lo g ie s

a n d D r iv e r s

G L O B A L G L O B A L M A N U F A C T U R IN G M A N U F A C T U R IN G

F E S T IV A L F E S T IV A L S H E F F IE L D 2 0 12S H E F F IE L D 2 0 12

Sir Christopher O’DonnellMarch 2012

Medical Technology

Innovative high-value addedmanufacturing technology

MedicalMedicalTechnologyTechnology

Innovation – Personal Innovation – Personal HistoryHistory

1970’s1970’s• High speed clinical chemistry analyser

• Servo-control infant incubator

• Portable human isolation nursing system

1990’s1990’s•Hydrocellular wound dressings

• Lightweight fracture casting products

• High vapour permeable IV dressings

• ‘Easy to use’ orthopaedic implant instruments

1980’s1980’s• Infection control urinary catheter

• Integrated heart by-pass oxygenator

& tube packs

2000’s2000’s• Tissue engineered wound dressings

• Oxidised zirconium hips/knees

• Bio-resorbable arthroscopic fixation

Sir Christopher O’Donnell – Sheffield 2012

Healthcare system Healthcare system demandsdemands innovationinnovation

M a r k e t d y n a m ic s

• Demographics• Active lifestyle• Better-informed patients• Declining surgeon income• Nurse shortage• Healthcare Spending• Specialization• New technologies

V a lu e a d d e d in n o v a t io n s

• Smarter materials• Less invasive (MIS) procedures• Accelerated healing• Alternative therapies• Faster patient turn-round• Positive health economics• Ease/convenience of use

Sir Christopher O’Donnell – Sheffield 2012

Global Medical TechnologyGlobal Medical TechnologyMarket by Region 2011Market by Region 2011

Source: Espciom 2011 Sir Christopher O’Donnell – Sheffield 2012

Global Market Value: $250bn

Factors affecting national ability Factors affecting national ability to innovate / differentiate to innovate / differentiate

productsproducts

1. D i f f e r e n c e s in c u s t o m e r d e m a n d : -

• Levels of healthcare spend per capita

• Approval, procurement and reimbursement practices

• Clinical practice, medical training and healthcare philosophies

Source: Arthur D Little/ DTI report 2004 Sir Christopher O’Donnell – Sheffield 2012

Factors affecting national ability to Factors affecting national ability to innovate / differentiate productsinnovate / differentiate products

Ø A c c e s s t o s c ie n t i f ic /c l in ic a l k n o w le d g e : -

• Varies according to maturity of technology• Clinicians have multiple linkages with innovation

process

Source: Arthur D Little/ DTI report 2004

First “product”breakthrough

ImagingElec.med/respiratory

Radiotherapy

Orthopaedics

IV Diagnostics reagents

Active wound management

Advanced wound management

(Tissue engineering)

Time

Ma

rke

t Siz

e

Increasing Technology MaturityEmbryonic Growth Mature Ageing

Sir Christopher O’Donnell – Sheffield 2012

MedTech InnovationMedTech Innovation

• Medical technology is a large and growing global industry

• Innovation is the key driver of growth and is global in nature

• Technology plays a major role in driving this innovation – but needs strong industry / clinician / health service collaboration to succeed

Sir Christopher O’Donnell – Sheffield 2012

MedTech Sector in the UKMedTech Sector in the UK

Companies - 2,500+

Domestic Market - £6bn

Exports - £5bn+

Employees - 50,000

Sir Christopher O’Donnell – Sheffield 2012

UK Yorkshire Region

Companies - 150

Turnover - £1.8bn

Strengths - Woundcare Orthopaedic Devices Surgical Instruments

Example of Innovation: Example of Innovation: Knee Joint ReplacementKnee Joint Replacement

Sir Christopher O’Donnell – Sheffield 2012

SMITH & NEPHEWGENESIS II

Knee Systemwith Oxinium™ Technology

OXINIUMOXINIUM™™ – a major innovation – a major innovationin reducing wearin reducing wear

• Ceramic is generally accepted as the ideal bearing surface for total joints but has strength limitations

Sir Christopher O’Donnell – Sheffield 2012

• For more than 15 years Smith & Nephew worked to develop an innovative material that combines the benefits of ceramic with the strength of metal

• The result OXINIUM™, a metal with an integral ceramic surface

• Performing clinically equivalent to or better than conventional alternative Cobalt Chrome

• In the Laboratory OXINIUM™ wear at 30 years is less than Cobalt Chrome at 3 years

Oxinium = OXIdised ZircoNIUMOxinium = OXIdised ZircoNIUM

Sir Christopher O’Donnell – Sheffield 2012

Define & Prove Alloy

Scale Up and Prove Smelting

Net ShapeForging

Shaping &Grinding Process

Finishing & PolishingProcesses

Biocompatibility

Small scale novel alloy

No other Manufacturerforges Zirconium

Zirconium dust combusts spontaneously and burns at 3,000°C

Completely novel mirrorfinish requirements

Process IssuesManufacturing Process DevelopmentManufacturing Process Development

Healthcare system Healthcare system demandsdemands innovationinnovation

M a r k e t d y n a m ic s

• Demographics• Active lifestyle• Better-informed patients• Declining surgeon income• Nurse shortage• Healthcare Spending• Specialization• New technologies

O X IN IU M

• Smarter materials• Less invasive (MIS) procedures• Accelerated healing• Alternative therapies• Faster patient turn-round• Positive health economics• Ease/convenience of use

Sir Christopher O’Donnell – Sheffield 2012

More Information?More Information?• INDUSTRY OVERVIEW

Strengths and Opportunity: Annual Update Dec 2011HMG; www.bis.gov.uk

• LOCAL INDUSTRY NETWORK/ASSISTANCEMedilink Yorkshire & Humber Ltdwww.medilink.co.ukTelephone: 01142 329200

• INNOVATION IN THE HEALTH SERVICEDevices for Dignity (D4D) Healthcare Technology Co-OperativeSheffield Teaching Hospitalwww.devicesfordignity.org.uk Sir Christopher O’Donnell – Sheffield 2012

G L O B A L G L O B A L M A N U F A C T U R IN G M A N U F A C T U R IN G

F E S T IV A L F E S T IV A L S H E F F IE L D 2 0 12S H E F F IE L D 2 0 12

Sir Christopher O’DonnellMarch 2012

Medical Technology

Innovative high-value addedmanufacturing technology