Medtech acquires tissue regeneration firm in $200m deal
Global medtech Smith & Nephew has invested more than $200m in the acquisition of an innovative biotech.
The group, whose UK orthopaedics operation is based at Warwick Technology Park, has entered into an agreement to acquire Rotation Medical Inc, a developer of a novel tissue regeneration technology for shoulder rotator cuff repair.
The deal is for an initial cash consideration of $125m and up to $85m over the next five years, contingent on financial performance.
Smith & Nephew CEO Oliver Bohuon said: “Rotation Medical furthers our strategy to invest in disruptive technologies that accelerate the transformation of Smith & Nephew to higher growth.
“The Rotation Medical Rotator Cuff System is an innovative technology serving unmet clinical needs. It is highly complementary to our Sports Medicine portfolio and provides a compelling new treatment option for our customers.”
The system incorporates a breakthrough technology and technique that balances biomechanics and biology to enhance the body’s natural healing response. The bioinductive implant helps tendons heal by inducing growth of new tendon-like tissue, offering the potential to prevent tear progression and reduce the incidence of re-tears. The system also includes a set of disposable arthroscopic instruments that enable reproducible procedures.
The bioinductive implant can be used along the rotator cuff tear treatment continuum – by itself for partial tears or in conjunction with our conventional portfolio of anchors and suturing technologies to supplement repairs of more complex tears. It is deployed arthroscopically.
In clinical studies the bioinductive implant has demonstrated the ability to improve tendon healing by inducing growth of new tendon-like issue, resulting in thicker tendons and replacement of tissue defects, as well as improving clinical scores over time and with a high percentage (92%) of patients expressing their satisfaction post treatment.
The transaction is expected to complete in late 2017, subject to the satisfaction of customary conditions, and to be earnings neutral in 2018 and accretive in 2019. The acquisition will be financed from existing cash and debt facilities.
