Smith & Nephew swoops for US medicine firm in £500m deal

Smith & Nephew, the Hull-headquartered medical technology firm, has agreed to acquire a US-based regenerative medicine business in a deal worth more than £500m.

Osiris Therapeutics delivers regenerative medicine products, including skin, bone graft and articular cartilage substitutes.

The Nasdaq-listed firm delivered revenues of $102m for the nine months ending 30 September 2018, an 18.7% increase over the same period in 2017.

Smith & Nephew have valued Osiris’ shares at $19 each, representing a total equity value of approximately $660m (£503m).

Namal Nawana, CEO of Smith & Nephew, said: “Greater presence in the fast growing regenerative medicine market enhances our portfolio and will help immediately accelerate our wound management business as well as provide longer term innovations in additional channels and indications.

“We sought out a fast growing portfolio with strong clinical evidence addressing critical needs in the marketplace.”

Two of Osiris’ products, Grafix and Stravix, account for more than 70% of its sales.

Skin substitute Grafix is a cryopreserved placental membrane intended for application directly to acute and chronic wounds, including wounds with exposed bone and tendon. Stravix is a cryopreserved placental tissue used as a surgical cover or wrap to support soft tissue repair in a wide range of surgical procedures.

Simon Fraser, president of advanced wound management at Smith & Nephew, added: “Grafix offers a compelling new option for managing hard to heal wounds and Stravix expands our tissue repair portfolio. We will drive synergies across products from common call points and increased access to our wider customer base.”

Peter Friedli, chairman and co-founder of Osiris, also said: “I am immensely proud of the business we have built from our research into advanced regenerative technologies. Smith & Nephew is the best new owner to take these products forward, widening access to more customers and restoring quality of life for more patients.”

Osiris’ 360 employees are expected to join Smith & Nephew on completion of the deal.

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