Smith+Nephew says discussions with J&J took place but have ended
SN•Smith+Nephew said discussions with Johnson & Johnson about its orthopaedics business have ended, though it will continue exploring strategic options. It lowered full-year guidance, expecting trading profit growth of around 4% and trading profit of about $1.25 billion.
1. Talks have ended
Smith+Nephew said it approached Johnson & Johnson earlier this year as part of a review of strategic options for its orthopaedics business. Discussions subsequently took place, but have now ended; the company said it will continue to explore options.
2. Guidance revised
The company said slower-than-expected growth in orthopaedics prompted a revision to its full-year guidance. It expects slower growth in US orthopaedics to continue through the fourth quarter and full-year trading profit growth of around 4%, with trading profit around $1.25 billion.
