Smith+Nephew awarded contract to provide Negative Pressure Wound Therapy systems to the United States Department of Defense  

Rhea-AI Summary

Smith+Nephew (NYSE:SNN) has secured a significant $75 million contract with the U.S. Department of Defense to provide RENASYS TOUCH Negative Pressure Wound Therapy Systems. The 10-year contract (5 years plus 5 one-year options) was awarded through the Defense Logistics Agency. The RENASYS TOUCH NPWT System, manufactured in the United States, was selected for its clinical efficacy, portability, and intuitive interface. The system will support military medical providers across various care settings, from casualty care to military treatment facilities. This contract builds upon Smith+Nephew's 2024 Master Cooperative Research and Development Agreement with the U.S. Army Institute of Surgical Research, continuing the company's century-long tradition of supporting military medical needs.

Positive

• Secured a significant $75 million contract with the U.S. Department of Defense
• Long-term revenue stream secured through 10-year contract duration
• Strengthens position in U.S. military healthcare market through strategic partnership
• Domestic manufacturing aligns with U.S. government procurement preferences

Negative

• None.

Insights

Defense Procurement & Medical Device Analyst

Smith+Nephew secures $75M DoD contract for wound therapy systems, enhancing revenue stability and military medical presence.

This $75 million contract with the Department of Defense represents a significant win for Smith+Nephew in the competitive medical device space. The 10-year agreement (5 years plus 5 one-year options) provides substantial revenue visibility and strengthens the company's position in the lucrative government contracting sector.

The selection of their RENASYS TOUCH NPWT System over competitors demonstrates Smith+Nephew's technological advantages in portability and interface design—critical factors in military medical applications where ease-of-use in challenging environments is paramount. The system's ability to provide individualized patient care through various therapy modes gives it versatility across the full military care continuum.

What's particularly valuable about this contract is its long-term nature. Defense contracts provide stable, predictable revenue streams that are less susceptible to economic fluctuations compared to civilian healthcare markets. With $7.5 million potential annual revenue over a decade, this represents a modest but stable contribution to Smith+Nephew's Advanced Wound Management division.

The U.S. manufacturing aspect is strategically important, aligning with increasing DoD preferences for domestically-produced medical equipment and potentially opening doors to additional military contracts. The recently announced research partnership with the U.S. Army Institute of Surgical Research further cements Smith+Nephew's relationship with military healthcare infrastructure and may yield additional innovations with both military and civilian applications.

While not transformative to Smith+Nephew's overall financial picture, this contract reinforces their position in wound care technology and demonstrates their ability to meet the rigorous requirements of military medical applications—expertise that often translates well to civilian healthcare markets.

Smith+Nephew (LSE:SN, NYSE:SNN), the global medical technology company, has been selected to provide its RENASYS^◊ TOUCH Negative Pressure Wound Therapy (NPWT) Systems under a single award, 10-year* contract for up to $75 million by the U.S. Department of Defense (DoD) through the Defense Logistics Agency (DLA).

The RENASYS TOUCH NPWT System demonstrated clinical efficacy,^1,2,3,4 and operational fitness including portability,² an intuitive interface,^5,6,7 and the ability to provide a range of therapy modes, set points and cycle times that allow individualized patient care. The system will support military medical providers to administer therapy through prolonged casualty care, first surgical intervention, aeromedical transport and definitive care in military treatment facilities. RENASYS TOUCH NPWT is manufactured in the United States.  

“Future conflicts will be more difficult and complex. This implies medical devices and treatments will need to be simplified and more intuitive to be used farther forward by a wide range of providers. RENASYS TOUCH NPWT will provide that simplified negative pressure wound therapy solution to the military care continuum for warfighters who need it most,” said Dennis Lyons, MSG (ret), SO-ATP and Sr. Director Military & Federal Health for Smith+Nephew. 

In 2024, Smith+Nephew announced the entry into a Master Cooperative Research and Development Agreement (CRADA) with the U.S. Army Institute of Surgical Research (USAISR) to partner to transform wound and burn care across the military care continuum.⁸ 

Smith+Nephew has a longstanding history of supporting military medical needs beginning with the First Field Dressing dating back to World War I. This legacy continues to evolve, meeting the growing needs of both civilian and military healthcare providers and patients. Today, our commitment to innovation in wound care continues through an extensive Advanced Wound Management portfolio designed to meet complex clinical needs and help healthcare providers reduce human and economic consequences of wounds.²

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Media Enquiries

Dave Snyder          +1 (978) 749-1440 

Smith+Nephew      david.snyder@smith-nephew.com

 

 * 5 years plus 5 one-year options

 

References

1. Smith+Nephew 2018. Results Sheet for the RENASYS TOUCH PCS Outcomes in Flaps. Internal Report. ST924A.
2. Forlee M, Zyl LV, Louw H, Nel J, Fourie N, Hartley R. A randomised controlled trial to compare the clinical efficacy and acceptability of adjustable intermittent and continuous Negative Pressure Wound Therapy (NPWT) in a new portable NPWT system. Poster presented at: European Wound Management Association (EWMA)2018; Krakow, Poland.
3. Wounds International 2020. Retrospective chronic and postsurgical wound case series: Understanding RENASYS TOUCH. London, UK.
4. Frear CC, Cuttle L, McPhail M, Chatfield MD, Kimble RM, Griffin BR. Randomized clinical trial of negative pressure wound therapy as an adjunctive treatment for small-area thermal burns in children. BJS. 2020;107(13):1741 - 1750.
5. Forlee M, Nel J, Richardson J, Rossington A, Cockwill J, Smith J. An interim analysis of device functionality and usability of RENASYS™ TOUCH - a new portable Negative Pressure Wound Therapy (NPWT) system. Poster presented at: Wounds UK2016; Harrogate, UK.
6. Smith+Nephew 2016. Smith and Nephew’s RENASYS Touch Device Features – Software features. Internal Report. DS/16/179/R.
7. Smith+Nephew 2016. Smith and Nephew’s RENASYS Touch Device – User Validation. Internal Report. DS/16/174/R.
8. https://www.smith-nephew.com/en/news/2024/02/28/20240228-smith-nephew-and-u-s-army-institute-of-surgical-research-to-engage

 

 About Smith+Nephew

Smith+Nephew is a portfolio medical technology business focused on the repair, regeneration and replacement of soft and hard tissue. We exist to restore people’s bodies and their self-belief by using technology to take the limits off living. We call this purpose ‘Life Unlimited’. Our 17,000 employees deliver this mission every day, making a difference to patients’ lives through the excellence of our product portfolio, and the invention and application of new technologies across our three global business units of Orthopaedics, Sports Medicine & ENT and Advanced Wound Management.

Founded in Hull, UK, in 1856, we now operate in around 100 countries and generated annual sales of $5.8 billion in 2024. Smith+Nephew is a constituent of the FTSE100 (LSE:SN, NYSE:SNN). The terms ‘Group’ and ‘Smith+Nephew’ are used to refer to Smith & Nephew plc and its consolidated subsidiaries, unless the context requires otherwise.

For more information about Smith+Nephew, please visit www.smith-nephew.com and follow us on X, LinkedIn, Instagram or Facebook.

 

Forward-looking StatementsThis document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and trading profit margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. For Smith+Nephew, these factors include: conflicts in Europe and the Middle East, economic and financial conditions in the markets we serve, especially those affecting healthcare providers, payers and customers; price levels for established and innovative medical devices; developments in medical technology; regulatory approvals, reimbursement decisions or other government actions; product defects or recalls or other problems with quality management systems or failure to comply with related regulations; litigation relating to patent or other claims; legal and financial compliance risks and related investigative, remedial or enforcement actions; disruption to our supply chain or operations or those of our suppliers; competition for qualified personnel; strategic actions, including acquisitions and disposals, our success in performing due diligence, valuing and integrating acquired businesses; disruption that may result from transactions or other changes we make in our business plans or organisation to adapt to market developments; relationships with healthcare professionals; reliance on information technology and cybersecurity; disruptions due to natural disasters, weather and climate change related events; changes in customer and other stakeholder sustainability expectations; changes in taxation regulations; effects of foreign exchange volatility; and numerous other matters that affect us or our markets, including those of a political, economic, business, competitive or reputational nature. 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 20-F, which is available on the SEC’s website at www. sec.gov, for a discussion of certain of these factors. Any forward-looking statement is based on information available to Smith+Nephew as of the date of the statement. All written or oral forward-looking statements attributable to Smith+Nephew are qualified by this caution. Smith+Nephew does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in Smith+Nephew's expectations.

 

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FAQ

What is the value and duration of Smith+Nephew's (SNN) DoD contract for wound therapy systems?

Smith+Nephew secured a $75 million contract with the Department of Defense for a duration of 10 years (5 years plus 5 one-year options) to provide RENASYS TOUCH Negative Pressure Wound Therapy Systems.

What will Smith+Nephew (SNN) provide to the Department of Defense under the new contract?

Smith+Nephew will provide its RENASYS TOUCH Negative Pressure Wound Therapy Systems, which offer clinical efficacy, portability, and an intuitive interface for military medical providers across various care settings.

Where are Smith+Nephew's (SNN) RENASYS TOUCH NPWT systems manufactured?

The RENASYS TOUCH NPWT systems are manufactured in the United States.

What is Smith+Nephew's history with military medical support?

Smith+Nephew has supported military medical needs since World War I, beginning with the First Field Dressing. In 2024, they entered a Master CRADA with the U.S. Army Institute of Surgical Research to transform wound and burn care.