Deal worth an initial £144m signed to acquire sports medicine technology

Deepak Nath

Hull-based med tech group, Smith+Nephew, has agreed to acquire CartiHeal, the developer of Agili-C, a novel sports medicine technology for cartilage regeneration in the knee.

Smith+Nephew will pay an initial cash consideration of $180m/£144m at closing, and up to a further $150m/£120m contingent on financial performance.

Agili-C is an off-the-shelf one-step treatment for osteochondral (bone and cartilage) lesions.

It is designed to treat a wide patient population, including those with lesions in knees with mild to moderate osteoarthritis, a previously unaddressed condition, as well as the approximately 700,000 patients who receive cartilage repair annually in the US.

Deepak Nath, chief executive officer of Smith+Nephew, said: “The acquisition of this disruptive technology supports our strategy to invest behind our successful Sports Medicine business.

“Agili-C’s superior clinical performance makes it highly complementary to our existing knee repair portfolio and with our proven commercial expertise in high-growth biologics, we are confident we will drive further success with this compelling treatment option.”

Nir Altschuler, chief executive officer and founder of CartiHeal, said: “As a leader in sports medicine and with a deep knowledge of biologics, Smith+Nephew is the ideal new home for Agili-C.

“We are excited at the prospect of our technology helping many more patients overcome knee pain.”

Scott Schaffner, president Sports Medicine at Smith+Nephew, added: “We have shown with REGENETEN that we have the market development and commercialisation expertise to take novel technologies and successfully establish a new standard of care.

“Agili-C is the perfect addition to our portfolio and we look forward to leveraging our expertise to transform cartilage repair outcomes for patients.”

CartiHeal was founded in 2009 as a university spin-out. It retains a small facility close to Tel Aviv and a sales office in New Jersey, US.

All CartiHeal employees are expected to transfer to Smith+Nephew.

The transaction is expected to close in the first quarter of 2024 and the acquisition will be financed from existing cash and debt facilities.

Click here to sign up to receive our new South West business news...