It is easy to overlook the fact that Smith & Nephew is rather more dependent on general economic trends in the countries where it operates than others in the healthcare sector. This accounts for its sometimes erratic progress. In the past, hard times in the United States and elsewhere have led to patients delaying non-urgent operations on hips and knees, hitting sales of its replacement joints.
Last year S&N was hit by two unrelated economic circumstances beyond its control. Low oil prices meant that hospitals in the Gulf states were putting the brakes on existing contracts to deliver its products, particularly trauma and wound management. These deliveries will have to come back at some stage as the shelves are empty, but there is as yet