Smith and Nephew's house broker counts cost of Dermagraft:
This article was originally published in Clinica
Executive Summary
Smith & Nephew shares fell to a three-year low, after its house broker, Dresdner Kleinwort Benson, forecast profits for the London-based company of £68 million ($109 million) in the half-year to June, down from £81 million the previous year. S&N committed $35 million to Advanced Tissue Sciences, its partner for the artificial skin product, Dermagraft, in January, but the FDA says a new clinical trial is needed before the product can be approved for diabetic foot ulcers (see Clinica Nos 812, p 14 & 792, p 9). In addition, S&N has seen the strong value of sterling and the US dollar affect its profits over the past 18 months.