Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We're very excited about the differentiation that we have within -- across orthopedics, but certainly was within knee |
| The good news is, as we exited September, we saw significant improvement in OXINIUM supply that contributed to sets starting to flow again in the US |
| I'm pleased to report another good quarter, which maintains our momentum from the first half |
| Orthopedics growth has stepped up as expected with one of the highest growth quarters for many years |
| And importantly, the strong underlying performance in Sports Medicine and Advanced Wound Management has also continued |
| There are puts and takes across the portfolio as you'd expect, but the overall picture is of strong innovation driven growth backed by improving execution |
| We're also advancing the 12-point plan with encouraging signs of delivery on outcomes |
| Our operational improvements under the plan are continuing to drive key metrics toward their targets, particularly around product availability |
| In Orthopedics, you can see that translating to better revenue growth for more lines of the business |
| And as I said, in addition to fixing our operations, we're very excited about what the investments and innovations that we've made are starting to deliver |
| We're making great progress in our 12-point plan |
| We now expect revenue growth to be towards the higher end of our 6% to 7% guidance range, reflecting our good momentum and improving execution |
| As I said, I'm pleased with what was another strong quarter for us |
| We feel good about where we're positioned relative to the envelope that we indicated |
| But even with that factored in, I feel at least at this point, good about our ability to hit our midterm guidance |
| So I continue to feel good about where we're positioned relative to our midterm guidance |
| So even with more difficult comps, we've continued the positive momentum we've seen in the early part of the year |
| So the operational improvements combined with the improvements we're making in commercial execution together with a best-in-class portfolio, that is what I think will set us apart in terms of driving growth |
| Hips is better than knees |
| So you put these pieces together, you can talk about any one thing, right, but really the power is in the combination and the power is in the combination of CORI plus best-in-class implant portfolio, right? And that's really what I think will be the winner for us |
| And we believe that's a great addition |
| And if I look at outside the United States, our commercial execution on top of product availability, which is coming from operational improvements, has enabled us to really participate in that growth |
| As you mentioned, CORI has some great features and benefits |
| We're also seeing good progress with our increased range of indications |
| And the fact is on the back of the operational improvements we're making, we were able to participate in the market upside, which was not always the case, as you'll recall, Robert |
| Underlying growth was 10.4% with the acceleration coming particularly from EVOS and from strong double-digit growth in the US |
| A tailwind in the market will help, but in the end, given where we are, given what our performance in the recent past in orthopedics has been what we're counting on and what our guidance is built on in is our ability to execute better commercially within an existing market |
| Our operational improvements on the 12-point plan established better supply and replenishment of imports |
| Putting all of that together with better commercial execution is translating into sustainable higher growth |
| So in terms of regional variations -- the market continued to be strong in Q3, not as robust as Q1 or Q2, but continues to be strong |
| Statement |
|---|
| In terms of the US knee business, the primary factor in Q3 really was around some product supply challenges |
| Procedure slowdown in anticipation of VBP among patients and of course, the overall healthcare market |
| So our poor results are to be viewed in the context of the broader commercial execution improvements that we're making on the back of investments in innovation |
| Some of those SKUs continue to experience challenges in Q3 -- particular challenges in Q3 that impacted not only replenishment of implants, but also our ability to place complete steps that can be utilized in procedures |
| As I mentioned, the headwind in the quarter was a slowing market in China on both consumables and capital |
| And there was also market-wide delays in purchasing around the widely reported ongoing anticorrosion campaign |
| The decline reflects a strong comparator from the third quarter of 2022 and also delays to SANTYL shipments in the early part of the quarter as we fully completed the transition of production to [indiscernible] |
| The slower quarter for the business unit as a whole was driven by bioactives, which was down 4.8% in the third quarter |
| Let me talk about the impact on AET that isn't related to VBP, but that's related to the overall slowdown in the healthcare market, in part because of the anticorruption campaign |
| In other words, VBP price reductions happen, and you're not expecting that to kind of be set, right? The additional headwind for the year is the impact around capital sales and to some extent, procedures based on the anticorruption campaign |
| There are more headwinds than at the time that we issued the guidance, the primary headwind being China, particularly on the sports VBP |
| We expect China to remain a headwind in Q4, and of course, we know this interest in VBP |
| And of course, I mentioned the overall healthcare market slowdown that impacted not just us orthopedics or sports, but just generally enhanced healthcare |
| And the reason needs are behind primarily has to view with continuing supply challenges, particularly on OXINIUM |
| There is some additional headwind in China as well and we're reflecting that with trading margin guidance now of around 17.5% |
| There was slower buying in joint repair as wholesalers reduced inventory in anticipation of the VBP process |
| So that remains an uncertainty |
| So when you look at the product mix in the US, the particular constructs and particular SKUs in the US were impacted and that also had an impact both in replenishment and sub delivery |
| Then I mentioned, of course, the VBP and Sports Medicine that will act as a headwind Anne-Francoise talked about |
| As headwinds, we expect slower Q4 in Sports Medicine with low to mid single digit growth |
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