Centers for Medicare & Medicaid Services Retain Single NPWT Code

Tuesday, November 10, 2009 General News
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ST. PETERSBURG, Fla., Nov. 9 The Advanced Wound Management division of Smith & Nephew, Inc., a subsidiary of Smith & Nephew plc (LSE: SN; NYSE: SNN), applauded the federal government's decision last week to maintain the current, single reimbursement code for negative pressure wound therapy (NPWT) devices. This decision, announced by the U.S. Centers for Medicare & Medicaid Services (CMS), affirms the conclusion reached by the Agency on Healthcare Research & Quality (AHRQ) earlier this year. AHRQ, like CMS, concluded that evidence does not exist to determine a significant therapeutic distinction between NPWT systems. As a result, CMS decided to maintain a single code for NPWT product components, including the canister and the wound care set.

"Smith & Nephew supports a single code for NPWT. It is the simplest coding requirement for clinicians and other caregivers, and creates value for their institutions," said Tom Dugan, North American President, Smith & Nephew Advanced Wound Management. "Along with the documented, comparable effectiveness of gauze and foam wound interfaces, this decision maintains the flexibility clinicians want when considering the best NPWT solution for the unique needs of a given wound. We strongly support this decision and believe it is in the best interests of Medicare, physicians, and their patients."

Separate from this decision by CMS, Smith & Nephew recently highlighted results of a multi-center study demonstrating that gauze-based NPWT achieves many of the common treatment goals defined for foam-based NPWT systems, including a reduction in wound dimension and exudate, improvement in granulation tissue, and enhancement of skin graft take. The study's authors presented these results at the recent 24th Annual Clinical Symposium on Advances in Skin and Wound Care in San Antonio, Texas.

The Advanced Wound Management Division of Smith & Nephew offers a broad range of advanced wound care products across a continuum of care that facilitate appropriate product utilization. Within this range of products are its RENASYS(TM) NPWT systems, which include pumps and supply kits that contain foam and gauze dressing options.

For more information on the RENASYS NPWT product range, please visit, and for more information regarding Smith & Nephew, please visit

About Smith & Nephew

Smith & Nephew is a global medical technology business, specializing in Orthopaedics, including Reconstruction, Trauma and Clinical Therapies, Endoscopy and Advanced Wound Management. Smith & Nephew is a global leader in arthroscopy and advanced wound management and is one of the leading global orthopaedics companies.

Smith & Nephew is dedicated to helping improve people's lives. The Company prides itself on the strength of its relationships with its surgeons and professional healthcare customers, with whom its name is synonymous with high standards of performance, innovation and trust. The Company operates in 32 countries around the world. Annual sales in 2008 were nearly $3.8 billion.

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. In particular, statements regarding expected revenue growth and trading margins discussed under "Outlook" are forward-looking statements as are discussions of our product pipeline. These statements, as well as the phrases "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions, are generally intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors (including, but not limited to, the outcome of litigation, claims and regulatory approvals) that could cause the actual results, performance or achievements of Smith & Nephew, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Please refer to the documents that Smith & Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith & Nephew's most recent annual report on Form 20F, for a discussion of certain of these factors.

All forward-looking statements in this press release are based on information available to Smith & Nephew as of the date hereof. All written or oral forward-looking statements attributable to Smith & Nephew or any person acting on behalf of Smith & Nephew are expressly qualified in their entirety by the foregoing. Smith & Nephew does not undertake any obligation to update or revise any forward-looking statement contained herein to reflect any change in Smith & Nephew's expectation with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

(TM)Trademark of Smith & Nephew.

Inquiries Press Steve DiMattia (646) 201-5445 Managing Director EVC Group, Inc. Investors Liz Hewitt + 44 (0) 207-401-7646 Group Director, Corporate Affairs Smith & Nephew Other Inquiries Tom Dugan (727) 399-3766 North American President Smith & Nephew Advanced Wound Management

SOURCE Smith & Nephew, Inc.

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