Smith & Nephew swoops for US firm in multi-million pound deal

Hull-headquartered medical technology firm Smith & Nephew is to acquire US firm Ceterix Orthopaedic in a deal worth up to £94m.

Smith & Nephew will pay an initial cash consideration of $50m (£44m)  and up to a further $55m (£49m) over the next five years, contingent on financial performance. Ceterix Orthopaedic is the developer of the NovoStitch Pro Meniscal Repair System, which addresses complex meniscal tear patterns not adequately served by other repair systems.

Brad Cannon, President Sports Medicine and ENT, Smith & Nephew, said: “NovoStitch Pro is an outstanding technology that addresses an unmet clinical need.

“We are excited by the opportunities to take this new option to our customers. No other company is better positioned to support changing clinical practice as the standard for meniscal treatment pivots from resection to repair.”

The NovoStitch Pro will be sold through Smith & Nephew’s extensive sports medicine sales force as well as Ceterix’s existing dedicated sales force.

John McCutcheon, Chief Executive Officer of Ceterix, said:”We are proud of the impact our technology has made in developing the meniscal repair market and are excited by the opportunity to reach many more customers and their patients as an integrated part of Smith & Nephew’s extensive Sports Medicine portfolio.”

The transaction is expected to close in early 2019. The acquisition will be financed from existing cash and debt facilities.

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