Sir Christopher O'Donnell discussed the history and drivers of medical technology innovation. He highlighted key innovations from Smith & Nephew over the past 40 years, including their recent development of OXINIUM, a novel zirconium alloy with a ceramic surface that shows reduced wear compared to conventional cobalt chrome in knee implants. The medical technology industry is global and innovation is driven by demands for smarter materials, less invasive procedures, and improved health economics. The UK has a large medical technology sector concentrated in regions like Yorkshire.

1. S ir C h r is
R etired C hief E xecutive, Smith & N ephew
O ’ D o n n e ll
F u t u r e M e d ic a l
T e c h n o lo g ie s
a n d D r iv e r s

2. F E S T IV A L
S H E F F I E L D 2 0 12
Medical Technology
Innovative high-value added
manufacturing technology
Sir Christopher O’Donnell
March 2012

3. 1970’s 1990’s
• High speed clinical chemistry analyser •Hydrocellular wound dressings
• Servo-control infant incubator • Lightweight fracture casting products
• Portable human isolation nursing system • High vapour permeable IV dressings
• ‘Easy to use’ orthopaedic implant instruments
Medical
Technology
Innovation – Personal
History
1980’s 2000’s
• Infection control urinary catheter
• Tissue engineered wound dressings
• Integrated heart by-pass oxygenator
• Oxidised zirconium hips/knees
& tube packs
• Bio-resorbable arthroscopic fixation
Sir Christopher O’Donnell – Sheffield 2012

4. Healthcare system demands
innovation
M a r k e t d y n a m ic s V a lu e a d d e d
in n o v a t io n s
• Demographics
• Active lifestyle • Smarter materials
• Better-informed patients • Less invasive (MIS) procedures
• Declining surgeon income • Accelerated healing
• Nurse shortage • Alternative therapies
• Healthcare Spending • Faster patient turn-round
• Specialization • Positive health economics
• New technologies • Ease/convenience of use
Sir Christopher O’Donnell – Sheffield 2012

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

6. to innovate / differentiate
products
1. D i f f e r e n c e s i n c u s t o m e r
d e m a n d :-
• Levels of healthcare spend per capita
• Approval, procurement and reimbursement
practices
Source: Arthur D Little/ DTI report 2004 Sir Christopher O’Donnell – Sheffield 2012

7. Factors affecting national ability to
innovate / differentiate products
Ø A c c e s s t o s c i e n t i f i c /c l i n i c a l
k n o w le d g e : -
• Varies according to maturity of technology
Increasing Technology Maturity
• Clinicians have multiple linkages with innovation
Embryonic Growth Mature Ageing
process
IV Diagnostics
reagents
Orthopaedics
Market Size
Active wound
First“product” management Imaging
breakthrough
Advanced wound
Elec.med/respiratory
Radiotherapy
management
(Tissue
engineering)
Time
Source: Arthur D Little/ DTI report 2004 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
UK Yorkshire Region
Companies - 150
Companies - 2,500+
Turnover - £1.8bn
Domestic Market - £6bn
Strengths - Woundcare
Exports - £5bn+ Orthopaedic Devices
Surgical Instruments
Employees - 50,000
Sir Christopher O’Donnell – Sheffield 2012

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

11. OXINIUM™ – a major innovation
in reducing wear
• Ceramic is generally accepted as the ideal bearing surface for total
joints but has strength limitations
• 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
Sir Christopher O’Donnell – Sheffield 2012

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

13. innovation
M a r k e t d y n a m ic s O X IN IU M
• Demographics • Smarter materials
• Active lifestyle • Less invasive (MIS) procedures
• Better-informed patients • Accelerated healing
• Declining surgeon income • Alternative therapies
• Nurse shortage • Faster patient turn-round
• Healthcare Spending • Positive health economics
• Specialization • Ease/convenience of use
• New technologies
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. F E S T IV A L
S H E F F I E L D 2 0 12
Medical Technology
Innovative high-value added
manufacturing technology
Sir Christopher O’Donnell
March 2012