UPDATE 2-Synthes Q3 sales up, confident outlook boosts shares

Wed Oct 21, 2009 5:57am EDT

* Synthes Q3 sales up 7.5 pct to $868.3 mln, meets forecasts

* Sales rise 10 pct when adjusted for currency effects

* Confirms 2009 outlook of low-double digit pct sales growth

* Shares rise 3.2 percent (Adds analysts, share price, background)

By Sven Egenter

ZURICH, Oct 21 (Reuters) - Swiss medical device maker Synthes Inc (SYST.VX) voiced confidence that it could keep sales growth up for the rest of 2009, after a recovery in the U.S. market added to strong demand growth in Asia and Europe in the third quarter.

The maker of nails, screws and plates to fix broken bones confirmed its 2009 growth forecast, saying sales should grow by a low-double digit percentage figure before currency effects.

Synthes shares rose 3.2 percent to 125.30 Swiss francs by 0918 GMT, making the stock the top gainer in an overall slightly weaker Dow Jones European health care sector index..SXDP

"Synthes grew on target -- i.e. low double digit -- and confirmed that outlook for Q4," Kepler analyst Florian Gaiser said in a research note. "That stands out as a sign of confidence."

Synthes' sales rose 7.5 percent to $868.3 million, the group said on Wednesday, in line with the average analysts' forecasts in a Reuters poll of $869 million.

Sales were 10 percent higher when stripping out currency effects, the group said, outperforming the growth of key competitors such as Biomet or Johnson & Johnson's (JNJ.N) medical devices unit.

Synthes, which also makes artificial spine discs, said the North American market gained momentum and achieved low double-digit growth across all major product groups again.

Synthes' spine business, where the global market leader in trauma treatment is still trailing competitors, was boosted by new products and the expansion of its sales force.

Synthes shares have fallen some 9 percent this year, underperforming a 7 percent rise in the Dow Jones European health care sector index. .SXDP (Reporting by Sven Egenter; Editing by Rupert Winchester)

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