Smith & Nephew share price tilts south as medical giant pulls hip device

Medical device manufacturer Smith & Nephew was forced to announce its plans to withdraw one of its hip-replacement systems as it required too many post-operative follow-ups. 

 

The 46mm model in question will be withdrawn from its Birmingham Hip Resurfacing system due to concerns it does not meet the standards set by health watchdog, Nice. 

 

Smith & Nephew said is was not advising proactive revisions for existing patients unless required for clinical reasons.

 

The firm also said the removed products accounted for around one per cent of Smith & Nephew’s global hip implant revenue in 2014, and 0.1 per cent of group revenues and the action will have no impact on guidance for the full year.

 

Despite these reassurances, shares in the company fell by over 1.1 per cent to close down at 1,440p.