Smith & Nephew

In Western economies, healthcare spending increases every year. Given ageing populations and growing affluence worldwide, as well as the greater incidence of diseases such as diabetes, demand for the medical devices and wound care products supplied by Smith & Nephew should continue to grow.

The company benefits from high barriers to entry and strong pricing power which enable it to generate stable cash flows and attractive profit margins.  

The company contributes positively to human health and wellbeing and it has a strong story to tell on sustainability, pursuing its goals in “People, Planet, Products.”

The Smith & Nephew board is pushing forward with a 12-Point Plan to boost profitability and innovation and we are seeing the financial benefits of this programme come through.

Smith & Nephew faces risks related to product safety. The use of animal testing in medical discovery and development, while often mandated by regulatory authorities to ensure human safety, raises ethical concerns. Some of the company’s products contain materials derived from porcine and bovine origin.

This not only raises animal welfare concerns but also presents challenges related to patient dietary restrictions, whether based on religious beliefs or personal choices.

Social concerns relate to the company’s manufacturing operations and supply chain oversight is a key area of engagement.  

The company also sources materials, such as critical minerals, linked to human rights concerns.