1. Sir Chris O’Donnell Retired Chief Executive, Smith & Nephew Future Medical Technologies and Drivers

2. GLOBAL MANUFACTURING FESTIVAL SHEFFIELD 2012 Sir Christopher O’Donnell March 2012 Medical Technology Innovative high-value added manufacturing technology

3. MedicalTechnology Innovation – Personal History 1970’s High speed clinical chemistry analyser Servo-control infant incubator Portable human isolation nursing system1990’s Hydrocellular wound dressings Lightweight fracture casting products High vapour permeable IV dressings ‘Easy to use’ orthopaedic implant instruments 1980’s Infection control urinary catheter Integrated heart by-pass oxygenator & tube packs 2000’s Tissue engineered wound dressings Oxidised zirconium hips/knees Bio-resorbable arthroscopic fixation Sir Christopher O’Donnell – Sheffield 2012

4. Healthcare system demands innovation Market dynamics Demographics Active lifestyle Better-informed patients Declining surgeon income Nurse shortage Healthcare Spending Specialization New technologies Value added innovations Smarter materials Less invasive (MIS) procedures Accelerated healing Alternative therapies Faster patient turn-round Positive health economics Ease/convenience of use DEMANDS Sir Christopher O’Donnell – Sheffield 2012

5. Global Medical Technology Market by Region 2011 Source: Espciom 2011Sir Christopher O’Donnell – Sheffield 2012 Global Market Value: $250bn

6. Factors affecting national ability to innovate / differentiate products 1.Differences in customer demand:- Levels of healthcare spend per capita Approval, procurement and reimbursement practices Clinical practice, medical training and healthcare philosophies Source: Arthur D Little/ DTI report 2004Sir Christopher O’Donnell – Sheffield 2012

7. Factors affecting national ability to innovate / differentiate products 2.Access to scientific/clinical knowledge:- Varies according to maturity of technology Clinicians have multiple linkages with innovation process Source: Arthur D Little/ DTI report 2004 First “product” breakthrough Imaging Elec.med/respiratory Radiotherapy Orthopaedics IV Diagnostics reagents Active wound management Advanced wound management (Tissue engineering) Time Market Size Increasing Technology Maturity EmbryonicGrowthMatureAgeing Sir Christopher O’Donnell – Sheffield 2012

8. MedTech Innovation Medical technology is a large and growing global industry Innovation is the key driver of growth and is global in nature Technology plays a major role in driving this innovation – but needs strong industry / clinician / health service collaboration to succeed Sir Christopher O’Donnell – Sheffield 2012

9. MedTech Sector in the UK Companies - 2,500+ Domestic Market - £6bn Exports - £5bn+ Employees - 50,000 Sir Christopher O’Donnell – Sheffield 2012 UKYorkshire Region Companies - 150 Turnover - £1.8bn Strengths - Woundcare Orthopaedic Devices Surgical Instruments

10. Example of Innovation: Knee Joint Replacement Sir Christopher O’Donnell – Sheffield 2012 SMITH & NEPHEW GENESIS II Knee System with Oxinium ™ Technology

11. OXINIUM ™ – a major innovation in reducing wear Ceramic is generally accepted as the ideal bearing surface for total joints but has strength limitations Sir Christopher O’Donnell – Sheffield 2012 For more than 15 years Smith & Nephew worked to develop an innovative material that combines the benefits of ceramic with the strength of metal The result OXINIUM ™, a metal with an integral ceramic surface Performing clinically equivalent to or better than conventional alternative Cobalt Chrome In the Laboratory OXINIUM ™ wear at 30 years is less than Cobalt Chrome at 3 years

12. Oxinium = OXIdised ZircoNIUM Sir Christopher O’Donnell – Sheffield 2012 Define & Prove Alloy Scale Up and Prove Smelting Net Shape Forging Shaping & Grinding Process Finishing & Polishing Processes Biocompatibility Small scale novel alloy No other Manufacturer forges Zirconium Zirconium dust combusts spontaneously and burns at 3,000 ° C Completely novel mirror finish requirements ProcessIssues Manufacturing Process Development

13. Healthcare system demands innovation Market dynamics Demographics Active lifestyle Better-informed patients Declining surgeon income Nurse shortage Healthcare Spending Specialization New technologies OXINIUM Smarter materials Less invasive (MIS) procedures Accelerated healing Alternative therapies Faster patient turn-round Positive health economics Ease/convenience of use DEMANDS Sir Christopher O’Donnell – Sheffield 2012

14. More Information? INDUSTRY OVERVIEW Strengths and Opportunity: Annual Update Dec 2011 HMG; www.bis.gov.uk LOCAL INDUSTRY NETWORK/ASSISTANCE Medilink Yorkshire & Humber Ltd www.medilink.co.uk Telephone: 01142 329200 INNOVATION IN THE HEALTH SERVICE Devices for Dignity (D4D) Healthcare Technology Co-Operative Sheffield Teaching Hospital www.devicesfordignity.org.uk Sir Christopher O’Donnell – Sheffield 2012

15. GLOBAL MANUFACTURING FESTIVAL SHEFFIELD 2012 Sir Christopher O’Donnell March 2012 Medical Technology Innovative high-value added manufacturing technology