Smith & Nephew PLC (LON:SN.) said the US market returned to growth in the third quarter when revenues recovered significantly from the declines seen earlier in the year.
In the three months to September, revenue slipped 4% to US$1.2bn, compared to an underlying revenue fall of 29.3% for the second quarter.
The US was up 1% on an underlying basis but was offset by a 6% decline in other established markets.
Emerging markets dropped 14%, with growth in China offset by COVID-19 impacts in Latin America and India.
Looking at the firm’s franchises, orthopaedics was down 3%, sports medicine shed 4% and advanced wound management dropped 6%.
Orthopaedics saw the strongest recovery late on thanks to global levels of elective surgery slowly returning to pre-pandemic figures.
Post-period end, the firm also agreed to acquire the Extremity Orthopaedics business of Integra LifeSciences Holdings Corporation for US$240mln, expanding portfolio in higher-growth extremities segment.
The hip and knee-replacement parts manufacturer said the outlook is still too uncertain for full-year guidance.
“Unfortunately, as key markets for S&N head into winter, it’s more likely that the situation with COVID-19 is going to get worse before it gets better,” analysts at Shore Capital noted.
“There could be some positive news on a vaccine before the year-end, but this wouldn’t have a material impact on allowing the re-opening of society, given the time taken to distribute the product on a large-scale.”
Shares dipped 1% to 1,371.5p on Thursday morning.
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