Smith & Nephew Announces Next Steps in Patent Infringement Litigation

ST. PETERSBURG, Fla., March 10 /PRNewswire-FirstCall/ -- The Advanced Wound Management division of Smith & Nephew, Inc., a subsidiary of Smith & Nephew plc. (LSE: SN; NYSE: SNN), notes the decision returned today by a jury in the patent litigation brought by Kinetic Concepts Inc. (NYSE: KCI) before the U.S. District Court for the Western District of Texas.  In that case, the jury found U.S. Patent Nos. 5,645,081 and 7,216,651 to be infringed by Smith & Nephew's RENASYS-F (Foam) Dressing Kit, which delivers Negative Pressure Wound Therapy (NPWT) to patients in need.  The jury also returned an advisory verdict that the '081 and '651 patents are not invalid.  Because that verdict is merely advisory, the Court will later decide whether Smith & Nephew proved that the patents are invalid.  

Smith & Nephew was surprised and disappointed by the jury findings, which Smith & Nephew believes are contrary to the facts and the law.  Smith & Nephew will continue to pursue its invalidity claims before the district court, which will make its own determination regarding invalidity.  Smith & Nephew will also pursue post-trial motions seeking to overturn the infringement verdict and damages award.

"While we are disappointed with the jury's findings, Smith & Nephew has had better results in other jurisdictions, including invalidating KCI's related patents in the United Kingdom and Germany. We remain firm in our belief that we do not infringe any valid U.S. patents," said Robin Carlstein, Senior Vice President, Smith & Nephew Advanced Wound Devices.

The RENASYS System enables clinicians to tailor NPWT to meet their patients' unique needs and the specific requirements of their wounds, with clear improvements in patient comfort, ease of use, and cost-effectiveness.  

Smith & Nephew's RENASYS-G, the gauze-based NPWT platform, was not at issue in the Texas trial and will not be affected by its final outcome.

For more information about Smith & Nephew, please visit www.smith-nephew.com.

About Smith & Nephew

Smith & Nephew is a global medical technology business, specializing in Orthopaedics, including Reconstruction, Trauma and Clinical Therapies, Endoscopy and Advanced Wound Management.  Smith & Nephew is a global leader in arthroscopy and advanced wound management and is one of the leading global orthopaedics companies.

Smith & Nephew is dedicated to helping improve people's lives. The Company prides itself on the strength of its relationships with its surgeons and professional healthcare customers, with whom its name is synonymous with high standards of performance, innovation and trust.  The Company operates in 32 countries around the world.  Annual sales in 2009 were nearly $3.8 billion.

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995.  In particular, statements regarding expected revenue growth and trading margins discussed under "Outlook" are forward-looking statements as are discussions of our product pipeline.  These statements, as well as the phrases "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions, are generally intended to identify forward-looking statements.  Such forward-looking statements involve known and unknown risks, uncertainties and other important factors (including, but not limited to, the outcome of litigation, claims and regulatory approvals) that could cause the actual results, performance or achievements of Smith & Nephew, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  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 20F, for a discussion of certain of these factors.

All forward-looking statements in this press release are based on information available to Smith & Nephew as of the date hereof.  All written or oral forward-looking statements attributable to Smith & Nephew or any person acting on behalf of Smith & Nephew are expressly qualified in their entirety by the foregoing.  Smith & Nephew does not undertake any obligation to update or revise any forward-looking statement contained herein to reflect any change in Smith & Nephew's expectation with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Trademark of Smith & Nephew.  Certain marks registered US Patent and Trademark Office.

SOURCE Smith & Nephew Inc.

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